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Auto Loan Options for Federal Employees?

There are many auto loan options for federal employees if they do not want to borrow from their Thrift Savings Plan. To show their appreciation, many lenders offer special rate discounts or terms for government employees, particularly those working in federal law enforcement, for the Department of Defense, or of course the military.

>> Federal employee? Go here to submit your application!

Credit Unions for Federal Employees

Credit unions are one of the best places to secure a car loan. They are receptive to a wider range of credit scores than most banks, they offer rates just as low, and they often avoid some of the more predatory, profit-driven tactics employed by banks. Here are a few of the major credit unions that serve government employees:

  • Pentagon Federal Credit Union
  • Federal Employees Credit Union
  • District Government Employees Federal Credit Union
  • Navy Federal Credit Union

Traditional Banks

Federal employees are always welcome to apply for an auto loan through large banks. Their application will be considered based on the guidelines that the lender has in place. While those factors vary from bank to bank, but some of the general factors are:

  • Vehicle age…less than 8 years old.
  • Vehicle mileage…under 100,000.
  • Down payment…at least 10 percent or $1,000. Can be cash, trade, or a combination.
  • Time on job…two years.
  • Time at residence…again, two years.
  • Gross monthly income…depends on lender, usually a minimum of $1,400.
  • Credit score/profile…540 or above.

Their job security and steady income makes federal employees attractive applicants among many banks.


A growing auto loan option is peer-to-peer lending or P2P. While there is no guarantee that you will find a lender, many peer lenders are willing to help federal employees because of the steady income that they enjoy. There is an additional willingness to lend to military personnel. The interest rates offered on P2P websites can be lower than those offered by traditional lenders.

Credit Problems?

If you do not qualify for a loan from a traditional lender, you still have options. You can apply to an online specialty lender. These lenders offer loans to people with higher DTIs, lower credit scores, or a short time on the job. Some specialty lenders will also lend money for the purchase of a classic automobile. You may wonder why these lenders only operate on line: they simply choose to keep their costs low by offering their services strictly online, avoiding the high costs of a brick and mortar location.

Since these companies are offering riskier loans, a loan through one of them will carry a higher interest rate than one through a larger bank. The interest rate you will be required to pay could be as high as 20 percent. Additionally, the length of the loan may be shorter than you would expect, averaging just 36 months.

>> Federal employee? Go here to submit your application!

How We Can Help

Here at Motive Auto Finance, we enable you to submit just a single secure application, which we then match the lender or dealer who wants your business this most. This takes the hassle out of finding a lender–we do it for you! Your loan specialist will guide you through each step of the process, enabling you to secure a loan that fits your vehicle, timing, and budget. Go here to apply online.