News Column

Understanding Vehicle Financing Updates

February 10, 2014

Understanding Vehicle Financing, an educational brochure for vehicle shoppers, has been updated to reflect relevant vehicle finance laws, terms and statistics.

The brochure takes consumers through the vehicle financing process and highlights the importance of budgeting, checking one's credit report, and shopping around.

According to a release, originally produced in 2003, the brochure has provided information to help millions of potential borrowers understand vehicle financing options and evaluate their own financial situations before financing or leasing a new or used vehicle. It was developed by the American Financial Services Association Education Foundation and the National Automobile Dealers Association, and prepared in cooperation with the Federal Trade Commission.

The brochure contains several useful tools, including:

-Worksheet to determine a monthly payment amount that the borrower can afford;

-Glossary of common vehicle financing terms;

-Worksheet to allow borrowers to compare terms from up to three creditors;

-Checklist of recommended actions to take before, during and after visiting the dealership; and

-Revised list of federal laws regulating financing and leasing.

"Buying a vehicle is one of most important purchases that a consumer can make, and this brochure lays the foundation for making a wise financial decision," said Susie Irvine, AFSAEF president and CEO. "Understanding Vehicle Financing is our most popular resource because it walks consumers through the entire process, from pre- planning to after the purchase."

"The collaboration between AFSAEF, FTC, and NADA enhanced the content of this already excellent one-stop guide for vehicle shoppers," said Dave Westcott, NADA chairman. "NADA encourages its dealers to provide copies of this great educational tool to their customers."

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