Last Updated On: October 18, 2016

Auto Loans For Military Personnel

Easy Application Process From Your Smartphone, Fast Response In Seconds, Low APR

The men and women who defend our country deserve to get benefits when it comes to buying the things they need, such as cars, homes and military auto loans are a great way to do so. The truth is that military car loans offer service personnel significant benefits over the kinds of auto loans that civilians get. The organizations that lend to the military understand the unique set of circumstances that surround the life of a soldier. They work to make financing a vehicle easier for our Veterans.

If you are or ever have been part of the military, then you can benefit from all these great perks that come with this process. Many lenders, such as Valley Auto Loans, are pleased to offer auto financing for military personnel. We offer special car loans for Veterans who are having trouble establishing credit for used and new vehicles. As a current or former member of the armed forces, you have earned your right to get a break on your military auto loan rates.

Auto Loans For Military Interest Rates, Tend To Be Lower

Military Auto Loans

You do not need to be in the military to understand the importance of lower interest rates on new and used car loans. To get an idea of how important getting a lower interest rate is, we can look at two different car financing scenarios and do the math for ourselves.

A $10,000 vehicle being purchased with a five-year loan at five percent interest would have an approximate monthly payment of $190.00. If we drop the interest rate to three percent, then the amount drops to about $180.00 per month. By cutting the interest rate just two points, we were able to save a total of $600 on the full cost of the auto loan. The more you pay for your vehicle, the more you can save on the total cost of your loan with a lower interest rate.

You May Qualify For Special Discounts

Many lenders who have special service personnel military auto loans programs and offer discounts and promotions to help lower the cost of the loan. You may be able to qualify for a half-point reduction in your interest rate, or you might get free oil changes for life. The perks can vary from lender to lender, which is why it is a good idea to shop around for your auto loan and get the best deal possible.

Your Chances Of Being Approved Are Much Higher For Military Car Loans

Lenders participating in this type of auto loan program tend to make it easier for military personnel to qualify for loans than civilians. There are several factors taken into account for a military member that can have an effect on his pay and some of his other credit considerations. For example, a deployed soldier may qualify for combat pay, which would raise his income and allow him to be eligible for a car loan.

As with any unique feature on your auto loan, these special approval considerations vary from lender to lender. When you are shopping around for the best car loan, be sure that you ask about your eligibility for financing based on your military pay and your position.

Your Down Payment Will Be Less

Another area where some lenders like to stretch things for military personnel is in the down payment requirements. An active duty soldier can sometimes find it difficult to make ends meet while deployed. That means that putting together a down payment for a vehicle when he gets home is not always easy.

Many service-related auto loan lenders are lenient on their down payment requirements and some even waive the need for a down payment altogether. When you are sitting with a loan officer to discuss your auto financing, be sure that you ask about the down payment and whether it is necessary in your case.

Your Repayment Schedule Could Be Longer

The average civilian auto loan runs anywhere from 36 to 60 months for repayment terms. With military status, those terms could be as long as 65 to 70 months, depending on the lender.

This is another situation where the unique circumstances of an active duty soldier make it necessary for lenders to create special conditions. A soldier could be deployed and in active combat for some time, and it would be tough for that soldier to make his car payment while he is serving his country.

With these extended repayment terms, the soldier can come back and know that he is still able to pay his car loan on time. When banks extend repayment terms, that tends to lower monthly payments. It is another way that different conditions for military personnel make things easier for the soldier and his family.

Refinancing Your Car Loan For Cash Out.

Bank Loans & Personal LoansIf you find yourself short on cash or you are thinking of getting a personal loan you may find that refinancing your car loan is a better loan deal. As a employed military person you have the option of getting a signature loan through several different lenders who offer special rates. However, personal loans always carry higher APR rates than secured loans like car loans.

If you have been making car payments for a couple of years you have built up substantial equity that can be turned into cash. By refinancing the car loan you will have the ability to turn that equity into money for consolidating debt or paying for a major expense like divorce fees. The car loan will have a lower APR and will not require a down payment and you won’t be adding another loan to your monthly expenses. Many times you can even lower your payments to a lower interest rate as well.

Military Personnel Find It Easier To Get Auto Loans With Bad Credit

As long as a soldier is still getting their pay from the government, then they have the credit they needs to get approved for an auto loan. Some lenders do have stricter requirements than others, but nearly all bad credit lenders can help soldiers with not so good credit, get the loan they need at a rate they can afford.

You Do Not Have To Live In The U.S. To Qualify For Military Auto Loans

If you are a member of the military, stationed overseas, then you can still apply for military auto financing with your bank at home. Then you do not need to be living at your United States address to request a loan. This can help to make things easier for military personnel who have no idea when they will come home, but who still need a new or used vehicle.

The lenders in the United States are proud to be able to serve the military personnel who protect our freedom at home and overseas. If you are a member of the military, then you need to know just how many perks there are when it comes to getting an auto loan. It is just one way that the financial lenders at home can thank you for the service you perform each day. Apply for one of Valley’s select auto loans or auto loan refinancing today! We are proud to offer auto loans to military persons with good credit, bad credit or no credit.