What is a Military Auto Loan?
Military auto loans are available through auto loan companies, banks and credit unions, such as Wells Fargo and MILES, a company that exclusively finances military auto loans. Each program will have individual requirements when financing a vehicle.
How do I get a loan?
After thoroughly investigating all lender options, you should apply with your lender for a military auto loan. Often this can be done online. Lenders will inform you of what you need to have with you when you fill out the application. Credit scores are usually not considered when accepting an application for a loan for active duty military. Some programs will require a car history report, such as Car-Fax to ensure that your car will last the duration of time it will take you to pay back your loan. Although you are guaranteed car financing, the amount of your loan is based on your monthly base pay which is determined by your rank. In some circumstances, lenders will allow you up to 45% of your income after expenses in an auto loan. Each financier has different guidelines.
How does a Military Auto Loan compare to a civilian auto loan?
The most obvious benefit to a military auto loan is guaranteed car finance. Furthermore, interest rates are generally lower on military auto loans than they are for private civilians. If you are stationed overseas, some lenders will allow you to have your funds transferred directly to a domestic account for your dependants to access and use to purchase a vehicle. In some cases, they will assist you in getting approved to ship a car from overseas back into the United States. The military auto loan allows you up to sixty months after you are no longer active duty to pay back your loan. When developing your finance plan, make sure you will be able to return the money to your lender before this time period is finished.
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