Younger buyers might not be the only age demographic that could use some assistance in explaining how the vehicle financing process works.
To help baby boomers as well as consumers of all ages easily research vehicle financing in one place, Americans Well-informed on Automobile Retailing Economics (AWARE) offers multiple, easy-to-use tools on its website.
AWARE members include American Financial Services Association, National Automobile Dealers Association, National Association of Minority Automobile Dealers and American International Automobile Dealers Association, as well as members of these organizations.
“Consumers may get overwhelmed when researching vehicle financing online,” AWARE spokeswoman Susie Irvine said. “Autofinancing101.org contains free, relevant information in one place to help consumers understand the entire vehicle financing process.”
AWARE provides the following tips and resources:
• Set a budget and determine a price range based upon your needs and financial situation, and stick to it. Use the Auto Finance Calculator at www.autofinancing101.org and the AFSA Education Foundation’s Monthly Spending Plan at www.afsaef.org/monthly_spending_plan.cfm.
• Obtain a copy of your credit report and check it for errors. You can obtain a free credit report once every 12 months from each of the three nationwide credit bureaus at www.annualcreditreport.com. The information in your credit report can impact your ability to get credit and your interest rate.
• Become familiar with common vehicle finance terms, such as APR or Annual Percentage Rate, collateral, down payment, and lien. Many of these terms can be found at www.autofinancing101.org/resources/glossary.cfm.
• Understand the difference between buying and leasing a vehicle. Learn more at http://www.federalreserve.gov/pubs/leasing.
• Understand the value and price of optional products such as extended service contracts, credit insurance, or guaranteed auto protection. If you do not want these products, do not sign up for them.
• Compare annual percentage rates and other financing terms from multiple finance sources. www.afsaef.org/apply_for_financing.cfm
• Negotiate your finance arrangements and terms.
• Read the contract carefully before signing it.
Additional information in English and Spanish can be found at www.autofinancing101.org.