Car financing as a Newlyweds’ Strategy to Acquire a Car
When newlyweds return home from their honeymoons they have to face the challenge of making major personal financial decisions, and buying a new vehicle is often one of the first ones. Communicating well and learning about financing can help them make this purchase.
To help with this process the Americans Well-informed on Automobile Retailing Economics (AWARE), a national consumer education group, released a list of suggestions for couples to keep in mind when financing their first car together. As it happens, the steps are very similar to those they will take to prepare for their wedding.
For starters you shall begin by sharing your credit history with each other. It is important to share your credit histories if you are planning to jointly finance a vehicle, since your credit histories will influence the financing rate you are able to secure. Obtain a recent copy of both of your credit reports. Once you know what creditors are seeing, you’ll have a good idea of your credit worthiness.
Develop a budget by evaluating your financial situation and determining how much you can afford to pay. Use a payment calculator to determine what fits your budget. You should decide together upon a budget for the vehicle you plan to acquire. Talk about the kind of vehicle you need and set a price that reasonably fits your budget.
The following step would be to shop around and compare interest rates and other financing terms offered by multiple sources such as banks, and dealers. There are thousands of options for financing a new vehicle, so to be on the safe side it’s smart to check multiple sources.
Don’t focus just on the price. Even though a particular model may fit your price range, it may not meet your needs. Be sure to factor-in other goals you may have, such as buying a house or starting a family. Vehicle-related costs outside of the car payment, such as insurance, maintenance and fuel efficiency should also be considered.
This process would not be complete if you don’t think about optional products and services you can acquire to finance the purchase of your new car. Many additional optional services are available when you’re in the process of financing a vehicle. Evaluate and understand the value and price of options such as guaranteed auto protection, credit insurance and extended service contracts. If you do not want any such services, do not sign for them.
And finally read carefully before signing on the dotted line. Just as you should read your marriage license carefully before you sign it, read any financing contract carefully before signing. Ask questions about anything that you do not understand.
Remember to honor your commitment. If you say “I Do,” to a car remember to honor your financing agreement and make your payments on time. Late or missed payments result in late fees and may even cause your vehicle to be repossessed. Additionally, a bad payment record will lower your credit score which damages your ability to obtain credit in the future.
If couples follow these simple steps to plan ahead, their car financing process will be much smoother. And remember, the more informed the newlyweds are about their financing options, the more satisfied they will be with their new deal.
