In an effort to provide dealers and F&I managers with more educational material so buyers can make better decisions, Americans Well-informed on Automobile Retailing Economics (AWARE) offered five helpful vehicle finance tips for consumers.
Those recommendations included:
• Budgeting helps eliminate surprises. Shop smarter by knowing how much you can afford to spend each month on a vehicle payment. Remember to consider operating costs such as insurance, gas, parking and maintenance. Create a monthly budget with AWARE’s Affordability Gauge at http://www.autofinancing101.org/resources/MonthlyBudgetAffordabilityGauge.xls.
• Become familiar with financing jargon. Many common vehicle finance phrases, such as APR or annual percentage rate, collateral, down payment, and lien, can be found at www.autofinancing101.org/resources/glossary.cfm.
• Determine if buying or leasing is the best choice for you. Learn about your options at http://www.federalreserve.gov/pubs/leasing.
• Find the best deal. Compare terms such as rates, down payment amounts, and finance contract or loan length with the interactive worksheet at www.afsaef.org/apply_for_financing.cfm and calculate your monthly vehicle payment with the auto finance calculator at www.autofinancing101.org.
• Negotiate your finance arrangements and terms. Do not sign a contract until you are satisfied with the terms.
“Educating yourself on the basics of vehicle finance can save you time and money,” AWARE spokeswoman Susie Irvine said. “AWARE simplifies the process with a collection of valuable educational resources at www.autofinancing101.org.
AWARE is a vehicle financing industry coalition to help consumers understand how auto financing works. The group provides potential buyers of new and used autos with the tools and resources they need to successfully navigate the auto financing process.
AWARE’s members include American Financial Services Association, National Automobile Dealers Association, National Association of Minority Automobile Dealers, American International Automobile Dealers Association, as well as members of these organizations, including
—American Honda Finance Corp.
—American Suzuki Financial Services
—Ford Motor Credit Co,
—Group 1 Automotive
—National Auto Finance Co.
—Nissan Motor Acceptance Corp.
—Saab Financial Services Corp.
—Sonic Automotive, Inc.
—Toyota Financial Services
—United Auto Group
—Wells Fargo Dealer Services