American Military Auto Loans
For those serving our country in the armed forces, military auto loans serve as a great option when purchasing a car. Military auto loans are specialized loans made to members who have served in the military. These loans often carry a lower interest rate, and are made to be conducive to the lifestyle of a military member. Any service member interested in purchasing a car should definitely consider a military loan as their first option.
Interest Rates
Military auto loans generally offer a lower interest rate compared to standard loans. Usaa auto loans, which are a specific form of military loans, offer interest rates as low as 3.14% for a new car. This is a full 3% lower than the average consumer loan. This is because these loans are subsidized by the lender. Lenders consider military income to be safer and more steady than average. Therefore, military members pose less a risk. Air Force auto loans can get as low as 2.95%. If you had purchased a 10,000 car with $800 in tax with a 60 month loan, you save $960 by taking the military loan interest rate.
Structured for Military Life
Military personal loans are made to fit the standard service member. Usually, these loans do not require a permanent address. This works well, since many career armed forces members tend to change locations a lot. These Military auto loans also offer longer repayment periods and can cover 100% of the purchase price. There are also military bad credit auto loans that offer all of these benefits to members of the military with less than stellar credit.
For those who purchased a car and were unaware of military auto loans, these can be used to refinance current car loans. Often, these loans do not include any prepayment fees. Therefore, a military member can take a longer term loan with lower monthly payments if they are unsure of their financial situation. But if they find more money, they can easily pay down the loan with no repercussions.
How to Apply for Military Auto Loans
To get one of these military personal loans for your car, you will generally need just your social security number, current address, and proof of military service. This can even be done online at sites like usaa.com for general military personnel, or airforcefcu.com, a credit union for members of the air force. Not only is it easy to apply, many of these loans get accepted in less than 1 business day. This is much quicker than a normal loan.
For anybody who has served in the armed forces, there is really no reason to ignore the benefits of military auto loans. By choosing these loans instead of the standard ones, a member of the armed forces would pay less in interest with lower monthly payments, and can get approved quicker with worse credit. If you are a military member and are about to purchase a car, get in contact with the appropriate military loan provider and start saving money immediately.