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Military Auto Loans: Pros and Cons
Military auto loans are only available to those on active duty, and are not available to ordinary civilians. These types of loans have their pros and cons, but they do enable you to get financing to purchase a vehicle. Listed below are some of the pros and cons of getting this kind of financing.
The Pros
- These types of auto loans are available to those on active duty in the military, or who have served for at least twenty years. This means that they are specifically designed for service men and women.
- Many lenders who offer these low rate car loans usually offer them interest free, and even offer 100% financing. Some include the Army, Air Force, Navy, Marine Corps Relief Society, the United Service Organizations, military organizations, banks, financial institutions and private moneylenders. You need only make a choice from the many lenders available.
- Many lenders will offer personalized service, even if you are applying online. A credit officer will be appointed to handle your case and will counsel and review your credit history to come up with a repayment plan that will work for you. This credit officer will also offer guidance, statements and any other information related to your auto loan.
- The entire process of loan programs includes applying for the loan. Getting approval for the loan being debited into your account can all be done through the Internet. This will save you money on the application and processing charges, as well as speed up the whole process. You should also look for lenders offering no prepayment penalty on the loan.
The Cons
- You will find that many private lenders target service men and women, and so they will open up offices near a military base in order to lure you into getting a loan with them. You need to be careful which lenders you go to, as you only want a reputable lender who is not out to take advantage of you.
- Even with the great terms and conditions offered with this kind of auto loan, you still want to be aware that it is a loan that will have to be paid back. Failure will not only ruin your credit score, but in extreme cases can lead to your suspension from the army. You should only apply for a loan when necessary, as it is a debt.
- You should analyze your situation well and decide whether you really need to get into debt. There are advantages and disadvantages in getting an auto loan, and so you should be well informed before getting one.
Armed with this information, you should be able to make an informed and wise decision on a military auto loan.
