What Are Military Car Loans?

North Pole and Fort Wainwright drivers often ask us, “Is it easier to get a car loan in the military?” Yes, and it’s all thanks to the availability of military car loans.

What are military car loans? Military car loans offer favorable terms for active military personnel, including low annual percentage rates and less stringent applicant requirements. Are you ready to start exploring your military car finance options? Here’s what to know before you finance a car while you’re on active duty. 

Military Car Loans vs. Regular Car Loans

What are military car loans? Military car loans have several advantages over regular car loans, including:

• Low annual percentage rates: Military car loans typically have lower interest rates, fees, and charges than regular car loans. Therefore, reducing the annual percentage rate (APR) of the loan.
• U.S. domicile is not required: You do not have to be in the United States to apply for a military car loan. 
• Less stringent requirements: Military car loans have lower standards for credit risk, making it easier to qualify for financing.
• Unsecured loan options: Unsecured military car loans may be available, meaning the applicant does not need to use property or other assets as collateral.
• Faster processing: Due to the more relaxed requirements, military car loan applications can be processed and approved within 24 to 48 hours.

What to Know Before You Finance a Car While You’re Active Duty

Now that you know what military car loans are, it’s time to start exploring your options. Here are a few tips to keep in mind:

• Compare your options: Get a free annual credit report to determine what loan type best fits your needs. After applying for a military car loan, compare the terms to traditional car loans. If you have good credit and financial history, you may be able to get a better loan rate with a traditional car loan. Our team will be happy to help you compare military car loans vs. regular car loans.
• Be careful with leasing: Leases can be complicated for military members, as the contracts typically prohibit taking the vehicle out of state or to a foreign base. Before you sign the contract, read the fine print and ensure it states that you are allowed to take your leased vehicle out of state or overseas. 
• Consider your location: If you’re stationed at Eielson Air Force Base or anywhere else outside of the continental United States (CONUS), you are considered overseas. That said, it may make sense to purchase a car at Chevrolet GMC Of Fairbanks and either take it to your next duty station or sell it at the end of your loan term. Our team is happy to walk you through either option.

Is It Easier to Get a Car Loan in the Military?

It’s not difficult to find low-interest military car loans as an active service member. Although a down payment is still required, the requirements are much lower than traditional car loans. At Chevrolet GMC Of Fairbanks, our finance departmentworks with a diverse network of lenders in Eielson Airforce Base and beyond, ensuring you and your family get the best rates possible. Dial (866) 578-2379 to get started and learn about our military discounts. We thank you for your service and look forward to working with you.