Key Benefits of Military Auto Loans
If you're a member of the armed forces, the benefits that come with a military auto loan can be very helpful. The process of taking out a military auto loan is no different than any other car loan, but to qualify for one, you must show proof of your military service. Consider these benefits of military car loans:
Easier to get approved – If you have limited credit history or a low credit score, it's easier to get approved for a military car finance compared to a traditional auto loan.
Lower interest rates – Military auto loans typically have lower interest rates. This makes financing for military personnel more affordable in the long run.
Flexible payment plans – Lenders who finance military auto loans sometimes offer flexible payment plans. Sometimes, military car loans have longer loan terms, which results in lower and more flexible monthly payments.
Lower down payments – Military personnel may not be required to make as large a down payment for an auto loan as a civilian would be. In some cases, active duty military personnel may even be able to qualify for zero-down car loans.
Special discounts – If you plan to buy a new car, many automakers offer special military incentives like cash back rebates for active duty, reserve, and even retired military personnel and their families.
Legal protections – There are laws in place in the U.S., such as the Servicemembers Civil Relief Act (SCRA), which protect active-duty military personnel from repossession in many cases.
It's always good to ask the lender or dealership finance manager questions about what's available to you. With all the different military auto loan programs, discounts, rebates, and terms offered, it's best to get informed before making a decision.
Unfortunately, our dealers and lenders have a minimum age requirement of 18 years for their Financing programs.
How to Apply for a Military Car Loan (Before or After Service)
Applying for a Military Auto Loan is just like applying for any other auto loan, except you need to show proof of your military service. If you've been turned down by other military-specific organizations, such as military credit unions, we want to help.
Here are the steps you should take to apply for a Military Car Loan:
First, gather your proof of service and other documents you need to start a loan: proof of identity, proof of income, and contact information. When you apply for a subprime loan, you need to provide proof of your ability to pay for a loan, the stability of your situation, and your willingness to make timely payments.
This, along with your credit report and score, helps a lender determine your auto loan eligibility.
Next, shop for a lender that meets your needs. You should start your search through a bank or credit union of which you're a member, or go through one with a specific military affiliation.
If you don't know where to start, we can match you with a dealership in your area that has lenders who specialize in many types of unique loans, including military auto loans with bad credit.
Auto Loans for Veterans with Poor Credit
Veterans may qualify for some of the same perks as active duty military personnel or reservists when looking for a car loan. Some manufacturers and dealers offer auto financing for veterans with bad credit, and deals year-round for military personnel and veterans, while some limit their specials to patriotic holidays like Memorial Day and Veterans Day. If you're looking for a great deal on an auto loan as a veteran, it pays to talk to the dealer beforehand to see what discounts they can offer, and bring proof of your military service with you.
If you're a veteran with bad credit, getting a military auto loan can be more complicated. Not all dealers have the ability to work with bad credit, and any discounts for veterans offered may not apply if they can't work with your credit.
Instead, you're better off finding a dealer that can work with your situation first, and then focus on any discounts they may offer. Here at Auto Credit Express, we specialize in working with dealerships that offer financing for people with credit challenges, including car loans for veterans with bad credit. See how we can help you by filling out our auto loan request form now.
What to Know About Guaranteed Military Auto Loans
Guaranteed military auto loans are designed for military personnel with little to no credit history or a deep subprime credit score. Typically, when language such as "guaranteed" is used, these types of auto loans are offered by in-house financing car dealerships, such as buy here pay here dealerships. They promise approval because these dealers don't use outside lenders, and may not check your credit. They typically approve any member of the armed forces who meets their income qualifications.
Dealers that offer guaranteed military auto loans understand that not every military member can qualify for a traditional car loan. To get a guaranteed military auto loan, go to a BHPH dealership, meet with someone in their finance department, set up the details of your loan, and choose from the vehicles on their lot that you qualify for. You should ask if they offer any special military incentives, and bring your military ID along with other needed documents, such as proof of income and insurance.
Keep in mind that guaranteed auto loans aren't always the best option. In-house dealerships may only be able to offer higher-than-average interest rates, only carry older used vehicles, and may not report loans or payments to the credit bureaus. So, if you want to improve your credit over time, a guaranteed military auto loan isn't the best route to take.
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