Veteran Auto Loans

Purchasing a new car can be an exhilarating experience, whether it’s for personal use or as a gift for a loved one. However, navigating the process of securing an auto loan, particularly for veterans, can pose some challenges. Fortunately, there are numerous avenues available for veterans seeking auto loans, even if they have poor or no credit history.

This guide will cover all the essentials you need to know about acquiring a car as a veteran. You’ll find information on different types of auto loans, where to secure them, eligibility requirements, and tips on choosing the right vehicle.

Is it Possible to Finance a Car Using a VA Loan?
The Department of Veterans Affairs (VA) in the United States does not directly provide auto loans. But, it does offer financial aid for vehicle purchases to veterans and active military members through the automobile allowance and adaptive equipment benefit.

How to Secure a Car Loan as a Veteran
Unlike VA home loans, the VA does not offer direct auto loans. Veterans who cannot drive due to service-related disabilities might qualify for financial assistance under the automobile allowance and adaptive equipment program, which includes a one-time payment that can go up to $21,488 for those with eligible injuries.

Where to Begin Your Search for Veteran Auto Loans
Since direct loans from the VA aren’t an option, we’ve put together a list of alternative sources where veterans can look for auto financing.

Dealer Financing
Adapting to civilian life post-active duty comes with its financial hurdles. Veterans considering car purchases have several financing routes they can explore, including VA-supported programs, special pricing from automobile manufacturers for military members, and loans from credit unions dedicated to serving those in the military.

Credit unions in particular might offer more favorable terms, focusing on membership benefits rather than profit. These institutions often provide discounted auto loans to veterans.

Researching various credit unions and their specific offerings is crucial as services and terms can vary significantly.

Recommended Auto Loan Providers for Veterans

**PenFed Credit Union**: Serving military personnel and select civilian groups, PenFed requires a nominal initial deposit but offers appealing terms through its vehicle purchasing service.

**Navy Federal Credit Union**: Open to individuals affiliated with various branches of the military, including the Army, Navy, and Air Force, as well as certain civilian categories. NFCU offers loans for a range of vehicles, although it excludes certain transactions like private seller purchases or lease buyouts. Members could benefit from competitive rates and a possible additional rate reduction for setting up direct deposits.

**USAA**: Available to former military members, USAA has a longstanding history of offering competitive loan rates for both new and used vehicles. It allows members to lock in a rate for up to 45 days after approval and explore further manufacturer discounts that may be available.

Navigating auto loans as a veteran involves understanding the unique benefits and options available, making the process more manageable and potentially more cost-effective. is not a government agency website or affiliated with the Department of Veterans Affairs. has relationships with VA Loan Specialists who work for VA approved lenders. may share your information with these trusted affiliates in order to assist you.