Automobile Finance Is Negotiable, Educational Coalition Says

WASHINGTON, March 30, 2012 - Many consumers focus their pre-car buying research on selecting the right vehicle, but spend limited time educating themselves about financing options. As Financial Literacy Month approaches, AWARE (Americans Well-informed on Automobile Retailing Economics) encourages consumers to concentrate on the entire automobile-buying process.

"Checking out the latest models and features may be the exciting part of car shopping, but researching financing options, such as interest rates, is equally important because the loan payments will be with borrowers for a while," says AWARE spokesman Eric Hoffman.

Similar to the way consumers research gas mileage and safety ratings, they should begin investigating financing options early. The first and most important step, Hoffman advises, is to create a budget to determine what you can afford to pay each month. Knowing what you can afford allows you to make a realistic comparison of interest rates and financing terms from multiple sources.

Consumers often overlook the importance of the financing step and tend to rush through it, agreeing to whatever terms are presented. According to AWARE, that need not be the case. "Negotiating your interest rate and loan term is as important as negotiating the price of the car," Hoffman adds.

Once you have reached a financing agreement, take the time to read all documents before signing them to confirm that the terms reflect what you discussed and make sure no lines have been left blank, Hoffman cautions. "Following these simple steps will help you enjoy the car you bring home without worrying how you will be able to afford it."

Additional educational information in English and Spanish can be found at Auto Financing 101.

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, Ally Financial, American Honda Finance Corp., American Suzuki Financial Services, AutoNation, Ford Motor Credit Company, GM Financial, Group 1 Automotive, Inc., Lithia Motors, National Auto Finance Co., Nissan Motor Acceptance Corp., Saab Financial Services Corp., Sonic Automotive, Inc., Toyota Financial Services, United Auto Group, Inc. and Wells Fargo Dealer Services.