Auto Financing Group Gives Newlyweds Tips on Financing Their First Family Vehicle

WASHINGTON, June 26 -- With the summer wedding season in full swing, Americans Well-informed on Automobile Retailing Economics (AWARE), a national consumer education campaign, reminds newlyweds to follow the old bridal adage when deciding how to finance their first automobile together.

"Something old, something new, something borrowed, something blue is not just for weddings, it applies to financing a new car or truck, too," Eric Hoffman, a spokesman for AWARE said. "And since buying a car or truck is often a couple's first major joint purchase, it is important they learn about vehicle financing and talk to each other before deciding what to buy or lease."

AWARE's advice for newlyweds is to apply the wise wedding saying when financing their first vehicle together:

  * Something Old: An old-fashioned family budget: If you don't already have
    a budget, now is the time to create one -- together.  Don't forget to
    factor in vehicle related costs outside of a new car payment, such as
    insurance, maintenance and gas costs.  Also, as a new couple, be sure to
    budget for other financial goals you may have, such as buying a house,
    ongoing education, or funding your retirement savings.  Drawing up a
    comprehensive family budget will help you determine how much car you can
    actually afford.

  * Something New: A recent copy of both credit reports:  If you are jointly
    financing your automobile, your credit history, and that of your new
    spouse, will affect the finance rate you are able to secure. Therefore,
    it's a good idea to get a copy of both of your free credit reports so
    you'll know what creditors are seeing when judging your credit
    worthiness.  Go to http://www.annualcreditreport.com/ for your credit
    report.

  * Something Borrowed: Shop around for financing: There are literally
    hundreds of thousands of sources of financing for automobile purchases,
    such as banks, credit unions, financing companies, savings banks, loans
    from stock brokerage firms, and home equity loans. This has created a
    highly competitive marketplace and lower rates for all consumers.
    Virtually all 22,000 automobile dealerships offer the convenience of
    one-stop shopping through on-site financing offerings that assist
    consumers in securing financing. Most dealerships work with five to 10
    different banks or finance companies so that they can offer competitive
    deals to their customers.

  * Something Blue: Don't let less than perfect credit give you the blues:
    If you are jointly financing your automobile and one of you has
    excellent credit while the other is credit challenged, understand how
    the finance company determines your annual percentage rate (APR).  For
    example, some finance companies will only judge a couple's credit
    worthiness based on the better qualified applicant.  With a good payment
    history, this could present a good opportunity to help the credit
    challenged spouse improve their credit history over time.  Other finance
    companies, however, may determine your APR based on both applicants, in
    which case you may want to consider applying for credit only in the name
    of the more credit-worthy borrower to secure a lower APR.

"These simple tips can really help couples before they buy their first car or truck together," Hoffman said. "And remember, consumers have the ultimate power in any negotiation because the auto financing industry is so competitive multiple creditors will want your business."

AWARE (http://www.autofinancing101.org/) was formed to build a greater understanding among consumers about how auto financing works. The group aims to ensure that potential buyers of new and used autos have the tools and resources they need to successfully navigate the auto financing process. AWARE focuses exclusively on educating consumers on vehicle financing in a web environment free of advertising or lead generation sales tactics.

  AWARE's membership includes the following:

  American Financial Services Association
  National Automobile Dealers Association
  National Association of Minority Automobile Dealers
  American International Automobile Dealers Association
  American Honda Finance Corporation
  American Suzuki Financial Services
  AutoNation
  DaimlerChrysler Financial Services Americas
  Ford Motor Credit Company
  General Motors Acceptance Corporation (GMAC)
  Group 1 Automotive, Inc.
  Jaguar Credit
  Land Rover Capital Group
  Lithia Motors
  Mazda American Credit
  National Auto Finance Company
  Nuvell Financial Services Corp.
  Saab Financial Services Corp.
  Sonic Automotive, Inc.
  Toyota Financial Services
  United Auto Group, Inc.
  Volvo Car Finance North America
  Wells Fargo Auto Finance