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Auto Financing 101 : Making Smart Vehicle Financing Decisions

Auto Financing 101 : Making Smart Vehicle Financing Decisions. Brought to you by AWARE www.AutoFinancing101.org. Vehicle Ownership and Your Financial Future. Economic empowerment Increased job opportunities Increased earning potential Improved quality of life, time with family

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Auto Financing 101 : Making Smart Vehicle Financing Decisions

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  1. Auto Financing 101:Making Smart Vehicle Financing Decisions Brought to you by AWARE www.AutoFinancing101.org

  2. Vehicle Ownership and Your Financial Future • Economic empowerment • Increased job opportunities • Increased earning potential • Improved quality of life, time with family • Opportunity to improve overall credit picture

  3. ARE YOU GET TO MAKE YOUR DECISION TO THE DEALERSHIP

  4. ARE YOU STEP 1: Prepare your budget

  5. ARE YOU Down Payment = Monthly Payments STEP 2: Save for a down payment

  6. ARE YOU STEP 3: Know your Credit Condition www.AnnualCreditReport.com or (877) 322-8228 • Credit information • Public Record information • Credit Inquiries • Personal Information

  7. ARE YOU STEP 4: Maximize your credit score • Improve your payment history • Lower your amounts owed • Make the most of the length of your credit history • Shop wisely for new credit • Manage the types of credit you have Source: Fair Isaac Corporation

  8. ARE YOU STEP 5: Do you need a Co-Signer? Creditor may require if you have little or poor credit history • Young or first-time buyers often need a co-signer Co-signer is often beneficial to high credit risk customers: • Can typically help to secure lower finance rates • Gives an opportunity to improve credit history with demonstration of timely payments

  9. TO MAKE YOUR DECISION GET Research vehicles within your price range www.nadaguides.com www.jdpower.com www.edmunds.com

  10. TO MAKE YOUR DECISION GET Shop around for vehicle financing Banks Finance Companies Credit Unions Dealerships COMPETITION Provides access to credit for all credit risks Economically benefits all consumers

  11. TO MAKE YOUR DECISION GET Source: “Keys to Vehicle Leasing,” Federal Reserve

  12. TO MAKE YOUR DECISION GET Source: “Keys to Vehicle Leasing,” Federal Reserve

  13. TO MAKE YOUR DECISION GET

  14. TO THE DEALERSHIP • Completing a Credit Application • Name • Social Security number • Date of birth • Current/previous addresses • Current/previous employment • Income sources • Total gross income • Information on existing credit accounts

  15. TO THE DEALERSHIP • You can often negotiateyour APR just as you would the price of the car • Research other financing sources in advance • Know what kind of a credit risk you are • Make yourself a strong applicant

  16. TO THE DEALERSHIP • Stay within your price range • Discipline pays off!!

  17. TO THE DEALERSHIP • Optional Products

  18. TO THE DEALERSHIP • Read Your Contract Quality Auto Credit, Inc. 12345 Smith Hwy, Springfield, TX 76021

  19. Make your payments on time! • Opportunity to build good credit – or damage your credit • Finance company holds a lien on the vehicle • Talk to your creditors if having difficulty paying

  20. Discussion Brought to you by AWARE www.AutoFinancing101.org

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