If you’re in the market to buy a new vehicle and are actively serving in the military, you may be eligible for special programs for active duty car loans. These programs can save you a lot in the long run and you may be able to get better deals and terms.
What is an Active Duty Military Auto Loan?
An active duty military auto loan is a type of financing specifically designed for members of the United States military who are currently serving. There are a number of benefits that come with this type of loan, including lower interest rates and more flexible repayment terms. Many lenders will work with active duty military members to help them get the best possible deal on their loan.
If you’re an active duty military member and you’re looking to finance a new car, then an active duty military auto loan may be right for you. With a little bit of research, you can find an active duty military auto loan that meets your needs and budget.
How is an Active Duty Military Auto Loan Different?
Active duty military members have many different benefits when it comes to financing a vehicle purchase. An active duty military auto loan is available through many lenders, and these loans offer a number of advantages over traditional loans.
Advantages of Active Duty Military Auto Loans
One of the main benefits of an active duty military auto loan is that the interest rates are often much lower than those for a traditional loan. This is because many lenders want to show appreciation for active duty service and many view active duty military members as low-risk borrowers due to their income source’s reliability.
In addition, active duty military members may be eligible for longer repayment terms, which can make it easier to afford monthly payments.
Finally, some lenders offer additional benefits such as bonuses for making timely payments or discounts on vehicle insurance.
For active duty military members who are looking to finance a vehicle purchase, an active duty military auto loan can be a great option.
Disadvantages of Active Duty Military Auto Loans
There aren’t many drawbacks specific to active duty auto loans in comparison to traditional car loans, simply because these loans are meant to provide perks and special benefits to auto financing for active duty military members.
You will have to prove your active duty status to qualify for these loans however, along with other requirements from the lender. If you are no longer active duty, there may be other military auto loan options that could still benefit you.
How to Qualify for an Active Duty Military Auto Loans
If you’re looking for an auto loan and you’re on active duty in the military, there are a few things you need to know in order to qualify.
It’s important to note that while having an active duty status can qualify you for several benefits, you will still have to meet the auto lender’s requirements for financing a car in terms of credit, income, and other documentation. You can provide your military pay stubs as evidence of income.
Connecting with a dealer can help you explore different auto loan options and what benefits you may be eligible for.
Find a dealer that can work with your needs and budget.
Can you Get an Active Duty Military Auto Loans with Bad Credit?
As mentioned above, credit is an important factor in getting approved for an auto loan for active duty military. However, if you have bad credit there are still options that are available for you to consider.
Many subprime auto lenders may have comparable deals, benefits, and programs for active duty – and specialize in helping customers with poor credit, bankruptcy, a limited credit history, or repossessions. The benefits of active duty car loans can be a great way for bad credit car buyers to obtain an affordable car loan and begin to rebuild their credit.
What Happens to Your Auto Loan While Deployed?
If you are in the military and deployed overseas, you may be wondering what will happen to your auto loan. Generally, you are still required to make your payments while deployed. However, many lenders are flexible and you can negotiate a better arrangement.
Some lenders have hardship programs that can offer some relief, such as deferring payments or lowering your interest rate. You may also be able to extend the term of your loan. Keep in mind, however, that these options will likely result in you paying more interest over the life of the loan.
If you are unable to make payments while deployed, you may be able to negotiate a repayment plan with your lender. Once you return from deployment, you will need to resume making regular payments on your loan. If you have any questions about your auto loan while deployed, be sure to contact your lender for more information.
Active Duty Auto Loans vs Veteran Auto Loans
Active duty auto loans and veteran auto loans are both designed specifically for service members, and the differences may vary from lender to lender.
Broadly, these programs often both consist of similar benefits to broader military auto loans, but may come with special perks for either military status; active duty or veteran.