Military Car Loans for First-Time Buyers: Getting Started

Military car loans are a special financing program intended to help US servicemen and women buy their cars. This loan is designed for the benefit of the members of the United States armed forces and has many perks. Car loans for military personnel typically do not have high interest rates like commercial auto loans. They also have a relatively longer repayment period which in turn gives the borrower lower monthly payments. Some lending companies also give additional discounts and rebates if the car loans are used to buy new cars. Here are a few important pointers to make your loan application and car purchase hassle-free transaction.

Secure Proof of Eligibility

Since military car loans are exclusive to military personnel, you must be an active member of the US armed forces to qualify. Although some lending companies extend loan even to new servicemen and women, the number of service years plays an important part in your loan approval.  The more years you have in the US military, the better chance for your military auto loan to be approved. Before applying, make sure that your military ID and other proofs of your status in the service are in order.

Provide Valid Contact Details

Lenders that provide military auto loans understand that a serviceman or woman can be stationed anywhere in the world. So, lenders require a loan applicant to provide valid contact details that will allow them to communicate with the borrower even if he or she is assigned in places like Japan, Europe, Afghanistan or Iraq. Apart from your US home address, you need to provide details about your US base and provide alternative contacts that can reach while you are overseas.

Know What Car to Buy

Do your research before you go to a car dealership.  You should already have a particular car in mind because once you have decided on the make and model of the car you want to buy, you will generally have a good idea of the loan amount you want as well.  Additionally, you will be less susceptible to the marketing tactics that are pushed by car dealers. In short, you can save more on your purchase if you know what to buy.

Know the Perfect Time to Buy


Buying a car works best when properly timed.  Generally, the months from January to July are not good car buying months because car dealers do not offer incentives during this period. However, from August to December, car buying can because manufacturers roll out their latest models.  Car dealers have more cars to choose and you can avail price cuts, should you decide to buy an older model.  Additionally, at the end of the year, dealers are also working hard to meet their sales goals and are ready to give you more perks and incentives when you buy a car.


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