Being a veteran does have many federal benefits, such as the VA home loan program. However, while veterans will receive some help paying for a mortgage or even medical bills, the federal government typically doesn’t provide assistance in auto loans for veterans. Don’t let this stop you though. There are plenty of private organizations which cater to the needs of veterans and may be willing to provide special rates and discounts for activate duty military personnel as well as veterans.

Benefits of Auto Loans for Veterans

Here are a few common benefits you should look for when researching auto loans for veterans:

  • Lower Interest Rates - If you’re not getting a better interest rate, odds are you won’t be saving much money in the long run. An interest rate change of just a few points can add hundreds of dollars to your monthly bill, depending on how much you borrow.
  • Extended Pay Back Period - Some lenders will be more lenient when borrowing to veterans. They may provide loan repayment of 48 months or greater which can lower your monthly bill substantially. Just be careful, some lenders will charge a higher interest rate in exchange for a longer loan.
  • Special Incentives - Auto manufacturers occasionally provide special pricing and discounts for veterans. It’s important to find out who’s offering the best discounts before you apply for an auto loan.

Personal Loans for Veterans

You may also be able to get a personal loan as a veteran to help pay for a new or used car. Personal loans are unsecured so it wouldn’t be tied directly to the vehicle you purchase, meaning they would never be able to repossess it if you stop paying. This doesn’t mean there’s nothing they can do though, as you can still be sued for any debt owed even if it’s unsecured.

Many financial institutions provide special rates for veterans, even veterans with bad credit. It’s important to shop around to find the best deal. Check out all of your local banks and credit unions and also see what you can find online. There are literally thousands of places you can get auto loans for veterans.

In-House Financing for Veterans

Many smaller privately owned car dealership will offer in-house financing for veterans. They may even offer better rates. Most of these dealerships will advertise “Buy Here Pay Here”. It may be a lot easier to get an auto loan from one of these private dealerships than it would be to get a loan from a bank, especially with bad credit.

Most cities have a few dozen of these small used car dealerships. Most of the time, you can go in to one of these places and talk with the owner directly. Try doing that at a bank. Mentioning you’ve helped protect their freedom as a veteran never hurts either. You might even get a better deal on the car you’re interested in.

Auto Loan Approval for Veterans

Veterans usually won’t get much of a break when it comes to qualifying for an auto loan. You will still need good credit and a down payment to qualify for a loan from most lenders. You will also need proof of residency and employment just like anyone else. You may get a better deal once you qualify, but there’s really no guarantee you’ll be approved for a loan just because you’re a veteran.