can a soldier finance a car on military salary?

Question

i just join the military and my father want to help get my dream car ,thing is he is doing the down payment for the car which is a 2008mercedes Benz class, it about 35 grand and i really like it he is doing a 6000 dollar down payment so i will pay the rest of it my self but being in the military and with my salary i feel like i would not have enough money for the monthly up keep of the car plus insurance,any military person enlisted ever finance such a car before?

Answer 1

Max,

I never financed a car on a military salary (I always bought old pieces of junk), but I have counseled many soldiers on car purchases and other major financial decisions.

It is possible to finance a car, even a nice one, on a military salary. However, it can be very difficult for a new service member to stay on top of car payments, especially when the vehicle is very nice and very expensive. Although the military takes care of a lot of your expenses, you may be surprised at how little of your pay is left at the end of the month. I know I was when I first enlisted.

I would advise you to consider buying a reliable, inexpensive used car first. Wait at least a year or so before buying a new car. This will give you time to figure out how much money you can part with each month, and it will also give you time to get promoted and start making even more money. Personally, I would recommend sticking with an older car for several years, and saving your money for a home purchase or family expenses.

If you decide you really have to have a new car, I would recommend something a little cheaper. You can still get a nice car for a lot less than 35k. Before you go looking, talk to your first line supervisor and get his or her advice first. There are a lot of dishonest dealerships located in military towns who try to take advantage of new service members. Your supervisor can probably help you avoid these places and can help you spot out bad deals.

This may be the first time you are getting regular paychecks and free housing, but try to resist the temptation to get tied down paying for a lot of things you might not really need. Trust me, now that you are in uniform you can get plenty of attention from the opposite sex even without a nice car. :)

P.S. If you are deployed overseas anytime soon (which is very possible these days), you will probably get bonus combat pay, which is untaxed. If you save that money while you are overseas, it can really help on a down payment.

Answer 2

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RE :Can a soldier finance a car on military salary?
i just join the military and my father want to help get my dream car ,thing is he is doing the down payment for the car which is a 2008mercedes Benz class, it about 35 grand and i really like it he is doing a 6000 dollar down payment so i will pay the rest of it my self but being in the military and with my salary i feel like i would not have enough money for the monthly up keep of the car plus insurance,any military person enlisted ever finance such a car before?
Follow 15 answers

Answer 3

I guess what I'd say is this. First off congrats on joining the service. Second you need to look at your pay grade and figure out what your monthly bills will be. Since you have just joined by a Vechile is premature you still have to get through your basic and individual MOS training. I am guess that you plan to use a your bonus to pay a good percentage of the car off. But realize that you will not receive your bonus entill you have completed you training and it will be taxed. Also wherever you may be stationed my not have a Benz dealership so how do you plan to keep the warranty? If you have already bought this car talk to your finance officer when you are going through processing they will help you step up payments and can help guide you. Here is just a thought for you, I spent 4yrs and 7 months in the Army and I didn't ever really feel the need for a vechile. I was way to busy and saved also of money, plus a percentage of the money I spent was used to replace or repair my equipment.

Answer 4

Just coming into the military, I assume that your somewhere around a paygrade of E-2. You don't need a 2008 mercedes benz that will sit for over a year while you're in Iraq (yes, you probably will deploy). Plus, the insurance, monthly payments, etc. will kill you. Go to Iraq, save your money and when you get back, use your saved money along with the 6 grand from your dad to make an even bigger down payment on a more sensible car. I have seen to many times where a private will overspend on a car that he finds out 6-8 months down the road that he can't afford it.

Answer 5

Assuming you are an unmarried guy just enlisted as an E-1, unless your father is also planning on helping you out on monthly payments, or you have a ton of cash in savings and can pay off the car immediately, I would advise against it. You can afford a car, yes; but something much simpler, like a smaller honda or toyota (in the under $20,000 range), or a nicer used car, but most likely not a brand-new Mercedes.

My husband just commissioned as an O-1, and even with me working to supplement our income, we could not afford even near that nice of a car. Monthly payments would be too high on their own, not to mention insurance.

You also need to take into account your credit situation. If you have stellar credit, or if your dad does and he's cosigning for you, you may be able to get a car loan with a good interest rate, thus being able to afford a little more car than if you have poor credit or little to no credit history (very likely the case if you are roughly 18 and just joining up) and are applying on your own, for which they will only offer you a loan at a higher interest rate.

Good luck to you, and thanks for your service, but I would advice against the fancy car.

Answer 6

i have. But since you just enlisted, I assume you are between an E1-E3. Even if you lived in the baraacks, ate all of your meals in the mess decks, you would be hard pressed to have any money left over for anything else. I tried it when I was first in the Navy, and I had to sell the car. it was just WAY TOO MUCH. The key is to buy a reliable used car first, get FULL coverage on it, and see how much money you are spending every month. Not just on the car/insurance, but on everything else. Then, if there is room in your VERY TIGHT BUDGET, you can upgrade. but I would NOT reccomend buying an expensive car. It is just too much to have to worry about, and your money is better served in investing a bit at a time while young, so when you get out, you have more, and can actually ENJOY the dream car that you can then purchase.

Answer 7

Yikes! You might if you're going in as an officer, but the insurance and payments are going to take most of your paycheck...why not ask your dad to hold off on it for a while until you know what you'll be making and can afford. Besides, if you're still going thru training, your new car is just sitting around depreciating.

Answer 8

My advice to you is DON'T DO IT!!!

That is a very large tab for someone just coming in to the military. When you add up the monthly payments on the car loans, plus the insurance you'll pay in your age group for that type of car...

Rule of thumb I always give my Soldiers, 25% or less of your monthly income can go to your car payment, as long as you don't have any other major bills to pay.

Answer 9

Good luck. Unless you go overseas quickly as an E-1 through E-4 in the military you will not be able to afford it. Most newly enlisted personnel go for a Honda Civic or something similiar because it it is more in their price range.

However, if you are an officer and just got commissioned you should be okay. You won't be doing too much though.

Answer 10

Are you asking if you can afford it? That depends on you. Are you asking if a dealership will finance you? Without a doubt. One of the biggest drawbacks and biggest benefits of a military career is that car dealers will do hand springs to get you to sign the dotted line. They know that they will get their money one way or the other.
Personal ancedote; my car broke down on day with a friend riding with me. It had been going downhill for sometime. Walking home, we came across a used car dealership. I like the looks of one car, the salesman came out and we drove home about 30 minutes later in my new car.

The people giving me a thumbs down need to read closer. I never said that he should buy this car and you tell me that I'm wrong about car dealers and the military.