Military Auto Loans

If you are currently enrolled in army services and you want to purchase a new car, you should know that there are specially tailored military auto loans at your disposal. Unlike the regular car loans available for the public, the men and women that are in active duty, or have retired from such, have a lot more advantages from specialized loans. Moreover, you will even have a higher chance of getting refinancing on your current car loan much easier than the civilian population.

The major advantage of applying for a military loan instead of a regular car loan is the interest rate. Enlisted personnel are not seen as a liability by lenders, and hence, they get to have much lower interest rates. Another way you can put this is that the military men and women are guaranteed to have a stable job and income and therefore, the lender is taking an insignificant risk. Due to these features of the profession, military auto loans will also provide access to larger sums of money and a more flexible repayment process.

Is it difficult to get a military auto loan?
Besides larger sums they can borrow and a lot more flexibility regarding the repayment method, the military men and women will also have simpler and fewer requirements to meet for the loan. First of all, you will need to show proof that you are still active in service.

The next requirement requires you to offer a stationary address where the notifications can be received by someone you know that can take the responsibility of announcing the messages from the lender. However, you will not need to provide your telephone or email address. The retired military personnel will receive even better deals. However, they will need to apply for the special veteran military loans that are subsidized by private institutions or even the government.

You can apply for the military, or veteran loans, via the internet, by paying a visit to a lender’s office, or by regular mail. In the end, it all depends on the rules and conditions your loan requires you to follow. The main difference from the regular car loans is that you do not need to provide the stable residency and job proofs. Some companies will accept to offer you a military auto loan even if you have just enlisted in the army.

What happens to the car loan during deployment?
In the event that you will need to leave the country for a longer period of time due to deployment, then you can either put your vehicle in storage or leave it in the care of your family or friends. In order to entrust someone with your vehicle, you and that person will need to sign a Power of Attorney agreement at your military unit. This paper will give the mandated person the right to purchase insurance for it and even register it according to the laws of the state where you are currently stationed.

The easiest way you can continue to make the payments whilst you are deployed is to authorize the lender to extract the money directly from your military checking account. However, if you are uncomfortable with the idea, you can empower your wife, husband, mother, sister, and so on, to have access to your checking account and make the payments for the auto loan each month. If you find the last method of payment more secure, then do not forget to stipulate the name of the person handling your account in the Power of Attorney agreement.

Does the credit score influence the military auto loans?
Similar to the auto loans available for the civilian population, the interest rate and the maximum amount of money you can borrow via a military auto loan is determined by your current credit score. However, the main problem with enlisted personnel is that they do not have time or are simply too young to have a credit score. This is why the bad credit score enlisted men and women will pay an interest rate higher than their colleagues with high credit score. On the other hand, the interest rate is still lower than the one available to civilians. As a rule of thumb, it is recommended to shop around a bit before you apply for an auto loan.