Unfortunately, many servicemen and women are unaware that there are special loan programs available to help them get a car. These loans are specifically designed for military members and often offer terrific terms, such as lower interest rates and longer repayment terms. In addition, many lending institutions will offer rebates on a new car for military members, while others will offer to defer payments on the loans if the member is sent overseas.
Military Car Loan Benefits
Almost any military member is eligible for this type of loan, which can be used for a new or used car or to refinance a current car loan. The interest rates on military car loans are often much lower than for civilian loans and the repayment terms are usually longer. These two factors can significantly reduce the amount of the monthly payment. You may also qualify for reduced insurance rates as well. All of these things together can provide military members who take advantage of these loans with substantial financial savings.
Eligibility Qualifications
Most military car loans require that the person is currently serving in the armed forces. Military car loans do exist for service members with bad credit, although they may be required to pay a higher interest rate. However, despite this increase, these loans still tend to have far lower interest rates than military members will find with traditional auto loans. The length of military service will also affect the interest rate – typically, the longer the person has been in the service, the lower the interest rate. In this way, it’s not much different than a traditional loan, as interest rates are usually lowest for individuals who have been at the same job for many years.
Where to Find a Military Car Loan
First of all, check with the bank or credit union on the base where the you have been assigned. The institutions associated with your base are usually able to find the lowest interest rates or the most reasonable offers for military car loans.
You may also want to search online for lenders that specialize in military car loans. However, do your research and make sure the lending institution is reputable – not all of them are, and some will offer loans with hidden fees or interest rates that rise over time.
The Application Process
In general, the application process for a military car loan is very simple and can often be completed online. You’ll need to provide proof of your military service and information about your assigned base, as well as your address, phone number, email, and other contact information. Usually, you’ll receive an answer within a day or two – many servicemen and women will be able to drive off in their new cars within just a couple of days of starting the loan process.
Setting Up Repayment Methods
If the you’re often deployed overseas, it’s best if the loan payment is set up to come directly out of a checking or savings account. This will help to ensure the loan payment is paid on time every month. Another option is to have a family member, such as a spouse or mother, be responsible for the loan payments while you’re out of the country. Unfortunately, if the payment isn’t made for any reason, the car could be repossessed. Plan ahead so that even a tour of duty doesn’t get in the way of your ability to make your payments on time.
