If you have served in the US military or are currently serving, you could be entitled to better rates, discounts, and better terms on an auto loan. There are military auto financing specific programs available, however, they can be difficult to navigate if you don’t have all of the resources and information.

What is a Military Auto Loan?

A military auto loan is a loan that is specifically designed for members of the military. The terms of the loan are usually more favorable than a conventional auto loan, and the interest rate is often lower as well.


In addition, many lenders and dealerships will offer special benefits to military borrowers, such as extended repayment terms or flexible down payment options. If you are a member of the military and you are considering financing a new vehicle, a military auto loan may be the best option for you.

Advantages of Military Auto Loans

There are many reasons to consider a military auto loan when buying a car. While each lender may handle these items uniquely, here are some common perks that come with military car loans.


  • Lower Rates
  • Reduced Down Payments
  • Extended Terms
  • Easier Approval Process
  • Flexible Payment Plans
  • Military Incentives & Discounts


These benefits can not only make the process of car buying for active duty, reserve, or retired military members go more smoothly, but it can save these car buyers a lot of money over the life of their loans.


These benefits can make it easier to get into a new car, even if you have less-than-perfect credit. Whether you’re looking for your first car or your next car, a military auto loan may be the right choice for you.

How to Qualify for a Military Auto Loan

Just like any other type of loan, in order to qualify for a military auto loan you will need to meet certain requirements. Lenders will typically look at your credit score, employment history, and income level in order to determine whether or not you are eligible for a loan.


If you have a strong credit history and steady income, you should have no problem qualifying for a military auto loan. However, if you have bad credit or a less solid employment history, it may be more difficult to get approved. In general, the better your financial situation is, the easier it will be to qualify for a military auto loan.


There are many manufacturers that offer military incentives for new cars,  especially around military holidays. However, if you have bad credit or a lower income, you will want to consider shopping around for used cars that are more affordable. There are also used car deals and programs for military members at certain dealerships.


Because of the incentives and more flexible qualification standards, it can be easier to get approved for a military auto loan than for other types of car loans.

Can you Get a Military Auto Loan with Bad Credit?

If you have bad credit, you may be wondering if you can get a military auto loan. The answer is yes – you can get a loan with bad credit, but there are a few things you need to know first.


It’s important to understand that interest rates on bad credit auto loans are typically higher than other types of loans. While military auto loans sometimes come with lower rates, your credit score is still something to consider.


You’ll also need to have a down payment saved up. This is because lenders will require a down payment in order to offset the risk of lending to someone with bad credit. The size of the down payment will vary from lender to lender, but can be between 10-20% of the total loan amount.


With credit remaining as a qualifying factor, incentives and deals may not apply if a lender is unable to approve you due to credit reasons. It’s important to find a dealership and financing option that can work with your situation before having your heart set on any specific incentives.

Get Started On Your Military Car Loan

If you think you're eligible for a military car loan, apply to get matched with a dealer today!

Can you Get an Auto Loan on Active Duty?

Active duty car loans are a great way to get your wheels if you’re currently serving in the military. Active members of any branch can qualify for this type of loan, even those who have bad or no credit!


There’s nothing different compared to the traditional auto loan application process except that you’ll need to provide an active duty ID and fill out some paperwork with lenders.


Active duty car loans may come with special incentives and deals that are not available to non-military members or even to veterans in some cases.

Can you Get an Auto Loan as a Veteran?

Veterans can often receive many of the same benefits that active duty and other military auto loans come with, and may have some specific incentives for veterans. Many manufacturers will have veteran’s car incentives all year-round. Others may increase their incentives or run new ones around holidays such as Veteran’s Day or Memorial Day.


Qualifying for veterans car loans is very much the same as a traditional auto loan, just as active duty car loans are. 

What is a 'Guaranteed' Military Auto Loan?

Some dealerships that offer in-house financing, like buy-here-pay-here dealers, may provide “guaranteed” military car loans. In these programs, all car buyers are approved that meet income requirements, regardless of their credit score or credit history such as bankruptcy or repossessions.


These types of loans often come with higher rates and may not be the best option if you’re able to get preapproved to shop elsewhere. However, for military members with bad credit, it can be a good option to get started on rebuilding your credit and getting into a vehicle.