Exploring the Benefits of Buying a New Vehicle with a Military Auto Loan
As a member of the military, you have earned the right to enjoy discounts and incentives at business across the nation. Indeed, when it comes to buying a new vehicle you can take advantage of special military auto loans that are designed to save you money. Though military auto loans work in a very similar way to a regular car loan, they come with a lot of helpful benefits, such as:
1) Low Interest Rates
The vast majority of lenders will be happy to offer discounted interest rates to qualified military members who take out a military auto loan. Though there is no industry-wide standard discount, you can generally expect to save around 0.25 – 0.50 percentage points off of the regular rate.
2) Easier Approval Process
Though many lenders will have strict criteria for who they will offer an auto loan to, they tend to be much more flexible when it comes to military members. Even if you have a low credit score or other outstanding debt lenders will try their best to work with you. You may also notice that the entire loan approval process is usually quicker than with a regular auto loan.
3) Low Down Payment
While many traditional auto loans will require you to put down a decent chunk of money before approving the purchase, you will not be expected to do this when taking out a military auto loan. Most lenders offer low money down options to service members, while some will even approve you with zero money down. Be aware though that putting down less money upfront means that you will pay more in interest over the life of the loan.
4) No Prepayment Penalties
Though becoming less common in the auto loan industry nowadays, there are still some lenders that will charge you a prepayment penalty for completing the loan payments too quickly. You can be sure to avoid that with a military auto loan, as lenders will almost never charge prepayment penalties to service members.
While there are a number of huge benefits and advantages to be gained by taking out a military auto loan, you should still be sure to spend some time planning out your finances and creating a budget for your new vehicle. Even with the discounts, a new car is a very large financial commitment, so you want to be sure of your purchase before moving forward.