Understanding Auto Loan SCRA Benefits

Auto loans are the most commonly claimed SCRA benefit. If you financed a vehicle before entering active duty service, you're entitled to have your interest rate reduced to 6% for the duration of your military service.

This applies to all types of vehicle financing - new or used cars, trucks, motorcycles, boats, and RVs. The key requirement is that the loan was originated before your active duty start date.

Example Savings Calculation

$25,000 auto loan at 8.5% APR, 60-month term

Original Rate
8.5% APR
SCRA Rate
6.0% APR
Monthly Savings
$32
Annual Savings
$384

Types of Auto Lenders

Auto loans come from various sources. Each has slightly different SCRA processes, but all must comply with the law.

Dealership Financing

Toyota, Ford, Honda Credit, etc.

Bank Auto Loans

Chase, Wells Fargo, Bank of America

Credit Unions

Navy Federal, PenFed, USAA

How to File Your Claim

  1. Locate your loan servicer

    Check your loan statement or online account for the servicer's contact information. Note: the servicer may differ from where you got the loan.

  2. Gather your military orders

    You need orders showing your name, SSN (last 4 is fine), and active duty start date. Orders should be the official version, not drafts.

  3. Contact the SCRA department

    Call the lender and ask specifically for their SCRA or military benefits team. Note the reference number and representative name.

  4. Submit written request

    Send a formal letter or email requesting SCRA benefits. Include your account number, a copy of orders, and explicit request for 6% rate.

  5. Follow up after 30 days

    If you haven't received confirmation, call to check status. Keep records of all communications.

Required Documents

Military orders (copy, not original)
Account number from loan statement
Written SCRA request letter
Government ID (some lenders)
Pro Tips
  • Request retroactive benefits - you may get a refund for overpaid interest since your active duty start date
  • Keep copies of everything you send and receive
  • If financing multiple vehicles, file claims for each loan separately
  • Some lenders auto-detect SCRA eligibility - check if rate was already reduced

Common Issues

Loan was refinanced: If you refinanced after entering service, the new loan may not qualify. Only the original pre-service debt is covered.

Co-signer on loan: SCRA benefits apply to the service member's obligation. If a non-military co-signer is on the loan, protections still apply to the portion the service member is responsible for.

Used car from private seller: If you got a bank loan to buy from a private seller, the bank loan still qualifies for SCRA - the seller arrangement doesn't matter.

Let Us Handle Your Auto Loan Claims

We'll contact your lenders, submit the paperwork, and track your claims to completion.

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