Most people would agree that veterans need to be taken care of by their fellow citizens. This is one reason why the US Department of Veterans Affairs exists, which helps veterans in various ways, but sadly it does not provide help with auto loans, except for very rare instances. Thankfully, there are a few companies and programs out there that can lend a hand.
A Veteran’s Financial Hurdles
There are many benefits for being in the military, but that does not mean there are no setbacks. One setback could be a service person’s credit score, and this could happen for a number of reasons. Many people in the military have a hard time keeping up with their bills because they are constantly on the move and can be deployed at any time.
Some people might suggest building up credit with smaller cards, such as gasoline credit cards or even department stores, but this system fails, too. Military service can take you beyond American boarders, making it pretty difficult to build credit in this way.
Those who are seeking auto loans might hit a roadblock, especially if they decide to go back to school on a GI Bill while receiving a federal stipend. This is because those in charge of giving you the loan are afraid that this stipend might run out before the loan is paid back.
In short, veterans might face financial issues that could make it hard to get an auto loan when they need it.
Auto Loan Options for Veterans
Believe it or not, there are a number of options available to veterans when it comes to getting help to buy a vehicle.
One solution is to join a credit union for veterans. The Navy Federal Credit Union is one of the most popular options that provides service to every department in the military. This credit union offers you a chance to get a car loan, and it should be a favorable loan when compared to others.
The United Services Automobile Association is another way that you can get a loan. Yes, this company is known to offer insurance to veterans and military personnel, but that is not all it can do. It has a number of programs that are meant to help military personnel get things like car loans. There is a chance that the company might offer discounts or saving certificates that are good for specific manufacturers or car dealerships.
It might be possible to get an auto loan by visiting a few private lenders. Many small lenders have a few special terms or discounts for those in the military or those who served. Sure, it is important to read between the lines of any loan to make sure it is legitimate because no company is above suspicion.
Small lenders will likely gloss over a credit history with a few blemishes and may offer lower interest rates on a loan. Some companies may not require a large down payment like many other companies do. It might be a good idea to call a few places to compare notes and see where you will get the best deal.
A Loan-Free Alternative
Some military personnel may not need a loan to get a car. Of course, you must qualify for this offer. Military personnel who were disabled while servicing the country could qualify for the VA allowance. The truth is that many people do not know much about this offer because it came to fruition October 2016. The VA program offers a one-time automobile allowance that could go up to $20,235.20, which should cover the most basic vehicle.
You will need to complete the VA form 21-4502. When you submit the form, make sure there are no errors, which could delay approval. Now, keep in mind that there are a few specific disabilities that a veteran must have, such as the loss or use of one or both hands or feet. Those who suffered from some type of vision impairment may also qualify for this allowance, not to mention those who suffered from burn injuries. The allowance is also reserved for those who have Amyotrophic Lateral Sclerosis. The allowance is given directly to the seller, so you will not see the check.
Hopefully, these options help you get the vehicle you want, with the assistance you deserve.
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