Military Auto Loans Examined: Rates and Terms

Military auto loans are available to members of the armed forces and their families. These loans allow service members to receive a favorable automotive loan for the purchase of a needed vehicle based on terms and conditions that take into account the individual’s service to the country.

Lenders that specialize in providing military auto loans are able to take into account a borrower’s service in the different branches of the armed forces. These lenders are able to arrange financing and be able to find loans that are competitive based on the prevailing market rates for auto loans.

Military Auto Loans and Traditional Loans

The rates that are available for traditional auto loans are the same for military auto loans. Some lenders may be able to offer additional incentives for armed forces members based on their rank or years of service. This may also hold true for active versus reserve members who apply for a military auto loan.

Terms for Military Auto Loans

Terms that are available for a military auto loan are also the same as they are for a traditional or civilian auto loan. They can range from 3 to 5 years and be financed as an unsecured loan or a secured loan requiring collateral or a down payment. The higher the down payment made, the lower the interest rate that will be offered to the borrower. The terms can also be made flexible to offer loan forgiveness and a reduction in payments if the borrower is injured or killed in action while serving the country.

Finding Rates Online


Rates that are available for military auto loans can be found online. USAA is the largest provider of loans and other services to members of the armed forces and can be used as a baseline of comparison for other providers of military auto loans. When shopping for military auto loans, you should shop different providers and compare the different rates and offers that are available. The rates that are quoted should be comparable to the rates that are provided to civilian borrowers.

Credit Rating


Military auto loans are still subject to the same requirements regarding credit and other underwriting qualifications. A member of the armed forces should access their credit report and be sure that the items reported are representative of their credit history. Necessary repairs, adjustments and fixes should be made in order to remove bad items that affect credit and may become an impediment to obtaining a good military auto loan.


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