Locations
If you’re in the military and stationed overseas, you have the unique opportunity to buy the car of your dreams at real savings. Eligible active-duty military, DoD employees, and some others have access to special military car pricing and discounts when they are serving outside the U.S. You can even purchase your new ride overseas and have it shipped back to the U.S. before you return.
We’re committed to making things easier for our members, so if you’re thinking about buying a new vehicle while you’re serving overseas, here are some important things to look for.
Financing
If you’re a Global Credit Union member, you may apply for an auto loan to purchase a vehicle overseas. All our vehicle loans feature competitive rates, no application fees, and an easy online application process, which means you can apply from virtually anywhere. Because we’re a member-owned, not-for-profit credit union, we can offer lower interest rates and lower loan fees than many other financial institutions.
Because overseas auto sales are more complicated, it may be helpful to get preapproved for your auto loan. Not all overseas dealerships accept preapproved loans, though, so check first.
Overseas military car sales programs
Overseas military car sales programs offer some great benefits, including substantial discounts (below the U.S. MSRP) and fixed pricing, which saves you from having to negotiate. These sales programs are only available to active duty servicemembers and other eligible people while stationed, deployed, or on TDY orders outside the U.S.
You can custom order your vehicle for pickup at the overseas dealer, or order it from the dealer’s stock while you’re overseas to have it shipped back to the U.S. Some European programs even allow you to pick up your car at the factory.
There are several programs available, including Military AutoSource, or those direct with auto manufacturers such as BMW, Mercedes-Benz, Volvo, and others.
What to look for in a dealer
If you decide to purchase your vehicle from a dealer near your duty station, choose a reputable business familiar with the needs of military buyers, and one that offers special military pricing. Keep in mind that this dealer may not necessarily be the one closest to your base.
Special military pricing will save you from the hassle of haggling for a lower price. Compare pricing with that available from one of the military car sales programs to be sure you’re getting the best deal. In addition, a good dealer can help guide you with things like customs, vehicle registrations, inspections, and more. And be sure to ask what happens if you have a change in your military orders that will impact delivery of the vehicle.
Buying a used vehicle through a private sale can be complicated and requires more steps. If you are financing the sale, be sure to contact your lender before buying, because some lenders may only provide financing for new vehicles purchased through dealerships overseas.
What to look for in a car
Look for a vehicle that meets U.S. emissions and crash standards. These can include specifications for things like bumpers, headlights, and other safety features. It can be difficult to find financing for vehicles that don’t meet U.S. specifications, and if you decide to ship a nonconforming vehicle back to the U.S. at the end of your tour, you’ll need to make modifications before the car can be registered stateside.
Don’t automatically expect to drive your car away from the dealership the same day you make the purchase because things like registration can take extra time. Plus, check the car’s warranty to make sure that service will still be covered by an overseas maintenance shop. Also, know that wait times for maintenance appointments may be longer, even for simple services like oil changes. Plan ahead to make sure your vehicle is properly serviced if you drive it overseas.
New or used? Both options may be available, but special military pricing may only be available from certain dealers and military car sales programs. If you decide to purchase a vehicle just for local use, know that you may not qualify for financing, and you may not be able to ship it back to the U.S.
What to look for in a budget
Even if you’re saving by buying your car overseas through a military sales program, avoid the temptation to buy more car than you can afford. Set a budget and stick with it. Use this handy calculator to determine how much you can afford to spend.
Know that your initial purchase is tax-free, but you’ll have to pay tax on your purchase when you register it in the U.S. There are two ways to save here:
- If you purchase the vehicle to drive overseas, consider delaying the U.S. registration until you ship it because the tax on the car’s depreciated value will be lower than that on a new vehicle when you eventually move back.
- Consider the state where you’ll register the vehicle upon your return. Sales taxes vary widely so if you have a choice in terms of your home of record or the state of your next assignment, choose the state with a lower tax.
When it comes time for you to return to the U.S., check your options for shipping your vehicle back as well. Your orders will determine whether the government will ship it back for you. If that isn’t the case for you, be sure to budget for transport.
Check your vehicle insurance to make sure you are covered while you operate the vehicle overseas. If you plan to drive your vehicle through several countries (Europe, for example), be sure to verify that level of coverage with your insurer. Plus, don’t forget to make sure you have coverage in effect while the vehicle is being shipped back to the U.S.
Buckle up and enjoy your new dream car
Purchasing a car while you’re serving overseas has several advantages along with a few extra steps that you need to take. Pre-planning gives you better options. Rely on companies that have a good record for serving members of the military. And let us know how we can help.
