Should You Buy a Car While Enlisting in the Military?
Deciding whether to buy a car while enlisting in the military is a complex decision that involves several factors. This article will guide you through the key considerations and help you make an informed choice.
Financial Stability
One of the most critical factors to consider is your current financial situation. Assess your income and expenses, including the cost of car insurance, maintenance, and fuel. Enlisting in the military may bring changes to your income, so ensure that you can afford these additional expenses. Research the specific financial changes that enlistment will bring, such as potential bonuses or cuts to your base pay, and adjust your budget accordingly.
Location and Transportation Needs
The availability and reliability of public transportation play a significant role in this decision. If you’ll be stationed in an area where public transport is limited or if you need a car for commuting to training or other obligations, purchasing a car may be beneficial. However, if you plan to live in dorms or barracks until you reach a higher rank, you may not require a car initially.
Military Benefits
Explore military-specific benefits or discounts for car purchases, insurance, and financing. Some dealerships offer special rates for military personnel, which can be a significant savings. Benefits such as the Military Spouse Economic Opportunity (MSEO) program can provide financial assistance and other resources for military families.
Deployment Considerations
If you are likely to be deployed shortly after enlisting, consider how you will manage the car during your absence. You may need to arrange for storage or have someone else use it. This period can be challenging, and you want to avoid the added stress and costs associated with a vehicle you cannot access.
Long-Term Plans
Think about your long-term plans and whether you will need a car after your service. If you plan to stay in the military for several years, having a reliable vehicle could be advantageous. Evaluate your future career path to determine if a car will be necessary for your service.
Credit and Financing
Financing a car requires a good credit score. Enlisting in the military can sometimes affect your credit, so consider this before making a purchase. If your credit score is not excellent, you may want to improve it before applying for a car loan.
Personal Anecdote: My Experience
My experience as a newly enlisted Airman in 1986 was unique. I was stationed in Germany and lived in dorms, making a car unnecessary for several years. I managed to save the money that would have gone towards car payments and insurance. In the end, I bought a 2-year-old car with a $3,000 down payment after my next assignment.
Many enlistees see the opportunity to purchase a car once they leave technical school and are assigned to their first permanent station. Dealerships often approve these purchases, knowing they have a guaranteed customer for the foreseeable future. However, many enlistees end up spending a large portion of their pay on car payments and insurance, which can be a significant burden.
Financial Classes and Budgeting
The military could benefit from providing better financial classes that teach young soldiers and airmen how to keep a budget and avoid overspending. Without proper financial education, many newcomers to the military may not know how to manage their money effectively.
Advice for New Enlistees
Avoid buying a car until you really need one or until you save up enough for a larger down payment to keep your monthly payments manageable. Delay purchasing a car until you have a clearer picture of your situation and can budget appropriately.
Conclusion
In summary, weigh your immediate needs against your future plans and financial stability. It might be wise to wait until you have a clearer picture of your situation after enlistment. By taking the time to plan, you can make a more informed decision that suits your long-term goals in the military.