The chief benefits of military auto loans are lower interest rates and greater flexibility. These are the reasons why the small military lender is outdoing the mainstream banks in lending to military personnel.
It may seem that the exclusive military market might offer less than attractive terms and conditions, given that it is so much smaller than the civilian market. But the fact is that there is a greater certainty for lenders in this niche area, so military personnel benefit when seeking financing, be it a military auto loan or personal loan.
The reason auto loans for military personnel, for example, are so much better, is that the borrower is employed by the US Government. This is a particularly convincing factor, of course, but there are several ways in which this fact positively affects the loan contract.
When military loans to purchase cars are compared with the corresponding civilian loans, there is little doubt that the best deals are available to service men and women, but there is still a condition to make repayments on time. This can sometimes be affected by the demands of military service, which is perhaps why there is often some flexibility shown.
Better Rates Available
As already mentioned, the reason military auto loans are available at better interest rates is down to the fact that the employment is very secure. It is not the same as working for a large corporation, where a sudden downturn in the economy can result in streamlining, and jobs being lost.
Because of the high level of job security, the repayments on auto loans for military personnel are basically guaranteed, especially when a facility can be created that sees the payments made automatically from the bank account of the borrower.
However, there are other benefits too, with military loans to purchase cars being made available at 100% financing and no down payment required, no pre-payment penalties and a longer loan term ensuring lower monthly repayment sums.
Of course, the chances of deployment during the term of any loan is very high. If a borrower is sent overseas, then repayments on military auto loans can be suspended. A spouse can take over the repayments, in which case power of attorney can be given to them, but for those personnel who are single, a postponement may be the only practical answer.
Alternatively, if payments are made automatically from a bank account, then auto loans for military personal can be paid by arranging a part salary payment into the account even from overseas. The fact is that every lender knows that military loans to purchase cars require some special conditions.
Online Lending Option
Perhaps the most similar factor between military auto loans and civilian auto loans is that the best deals are often found on the internet. Online lenders tend to offer the same low interest rates and good terms, as well as an ability to search through the widest selection of loan products for the best possible deal.
But perhaps the biggest advantage of sourcing auto loans for military personnel online is that location is not an issue. Whether the borrower is stationed in Germany or Georgia, Afghanistan or Arkansas, the accessibility remains the same. Repayments are simply made via a named bank account.
There is no doubt that military loans to purchase cars have real advantages over the civilian equivalent. This is good news for service men and women around the world, especially since deployment does not have to be considered a hindrance. From better interest rates to greater flexibility military auto loans are superior.
Article Tags: Military Auto Loans, Military Auto, Auto Loans, Military Personnel, Military Loans, Purchase Cars, Interest Rates