Yahoo Autos Veteran Car Loans: Everything You Need to Know
After serving in the military, you might find yourself having to readjust to civilian life. This transition can be difficult whether you're looking to settle into retirement or continue your career in the private sector. Unique challenges include integrating back into your family, establishing a support system, and navigating financial pressures.
Financial pressures are particularly rampant, as veterans may not receive the benefits they need after their service. A veteran who needs supplemental income might not be able to work upon returning home due to a service-related injury. Veterans can also have a hard time building credit, paying off loans, and recovering from the exorbitant costs of moving every few years.
With these financial challenges to worry about, buying a car might seem impossible. However, it's often a necessary expense when veterans return home. You might need to buy a car whether you're coming back from overseas or moving from somewhere that allowed you to use public transportation.
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The good news is that buying a car is well within reach for veterans like you. Several organizations want to show gratitude for your service by making this big purchase more accessible. This guide on veteran car loans will help you learn everything you need to know about obtaining financing for your new vehicle. We also cover other tips for affording a car after your military service, including how to obtain discounts from military credit unions and dealerships.
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Does the VA Offer Auto Loans?
Seeing as Veterans Affairs (VA) offers everything from purchase loans to cash-out refinances to help veterans buy homes, you might be surprised that there are no VA auto loans. This federal department doesn't currently have any general programs to help veterans purchase new cars. However, a former military service member facing extenuating circumstances might be able to receive financial assistance if they qualify for the VA Automobile Allowance and Adaptive Equipment program.
What Is the VA Automobile Allowance and Adaptive Equipment Program?
The VA Automobile Allowance and Adaptive Equipment program is part of the U.S. Department of Veterans Affairs disability benefits. It issues a one-time payment of up to $22,355.72, which you can use to buy a specially equipped vehicle so you can safely drive with your service-related injury. In some cases, you can get adaptive equipment grants to modify a vehicle in accordance with your disability. For instance, you might add features like special brakes, seats, windows, power steering, or lift equipment to make entry and exit more accessible.
VA Automobile Allowance and Adaptive Equipment Program Requirements
Veterans and current service members can qualify for the VA Automobile Allowance and Adaptive Equipment benefit if they suffered a service-related injury that inhibits their ability to drive. The injury, also known as a service-connected disability, must include at least one of these conditions:
Loss, or permanent loss of use, of at least one foot
Loss, or permanent loss of use, of at least one hand
Permanent decreased vision in both eyes
Ankylosis in at least one hip or knee
A severe burn injury
Amyotrophic lateral sclerosis (ALS)
How to Apply for the VA Automobile Allowance and Adaptive Equipment Program
Veterans who think they might qualify for the VA Automobile Allowance and Adaptive Equipment program must file a claim for disability compensation and ensure their service-connected disability falls under 38 U.S.C. 1151. Additionally, you must obtain the VA's approval before you buy a specialty vehicle or adaptive equipment. If you don't, you won't receive reimbursement for your purchases.
Buy a Specially Equipped Car
If you don't already have a car, or if your injuries call for a vehicle with several modifications, it might be ideal to buy a specially equipped car. Claim a one-time payment from the VA by filling out the Application for Automobile or Other Conveyance and Adaptive Equipment, also known as VA Form 21-4502. The VA will issue the payment directly to the vehicle's seller.
Buy Adaptive Equipment
Some veterans only qualify for grants for adaptive equipment. This option can also be ideal if the maximum payment of $22,355.72 isn't enough to help you afford a specialty car or if you want to make your current car more accessible. Claim your grant by filling out the Application for Adaptive Equipment—Motor Vehicle form, also known as VA Form 10-1394. The VA may issue the payment directly to you or the equipment seller.
Military Credit Unions That Offer Auto Loans
Though the VA Automobile Allowance and Adaptive Equipment program is a great help to veterans, not all former service members will qualify for it. Just because you don't have qualifying injuries doesn't mean you don't need financial assistance after returning home. Fortunately, military credit union auto loans are another way to obtain the necessary funding to purchase a car. Here are some of the top credit unions among former military personnel:
Navy Federal Credit Union
You can qualify for a membership with Navy Federal Credit Union by:
Being a veteran
Having current ties to the armed forces, National Guard, or Department of Defense
Having an immediate family member who has membership with Navy Federal Credit Union
Membership is for life, meaning you don't have to qualify again when you return to civilian life as long as you keep your account open. When members are ready to get the financing they need for a new car, they can take advantage of this credit union's affordable auto loans. You can get a new vehicle auto loan or refinance loan as low as 3.29 percent APR (annual percentage rate). Loan periods ranging from 36 months to 96 months give you the flexibility you need to keep your payments affordable.
Current and former military personnel save even more, thanks to exclusive military discounts. You can qualify for a military discount by opting for direct deposit and calling the credit union or visiting a branch in person. Another reason Navy Federal Credit Union is popular among veterans is because of its fast approvals. Many applicants receive a decision within minutes, so be sure to provide a current email address during the application process. Quickly getting the funding you need for a new car is a crucial part of the transition back to civilian life.
Veterans also appreciate Navy Federal Credit Union because of its car-buying service. Use the loan you qualified for to shop online and buy a vehicle from one of the credit union's certified car dealerships.
Service Credit Union
Service Credit Union is another organization that caters to active duty military personnel, veterans, current and former Department of Defense employees, and their families. Auto loans come with rates as low as 3.74 percent APR, and you can use the credit union's car loan calculator to get an accurate estimate for your monthly payment. New car loans come with flexible terms to help you afford the vehicle you want without having to compromise.
As for used cars, you can get a loan with the same low rate as a new vehicle loan if the car you're buying is less than three years old. While Service Credit Union can help you get a new or used car, it also provides loan packages for boats, ATVs, RVs, snowmobiles, and other types of vehicles. Additionally, veterans can keep the vehicle they have, thanks to affordable refinance car loans.
