No Magic Required

Everyone knows someone who has suffered economically the past few years, and this puts a lot of people into a credit situation they may never have experienced before. Vehicle shoppers should know that no magic is required to get a car loan even when credit is tight. Instead, those who want to borrow money to buy a  vehicle “should continue to do their homework before heading to the dealer,” says AWARE, a nonprofit auto financing education group. 

The group, funded by the auto financing industry, says loans remain available for those who follow the proven routine. First, check your credit rating by obtaining your credit reports — for no charge — from www.annualcreditreport.com, a government-mandated site. Challenge errors on your reports, settle outstanding debts and build rationale for negative items. Obtaining your actual FICO score requires a payment at myfico.com. Quizzle.com offers a free score that is close but not identical to your FICO number. Next, determine how much you can afford as down and monthly payments. Finally, AWARE recommends shopping around for financing. To find the best deal, check with web sites like kbb.com, banks, credit unions, financing companies and auto dealers who have solid credit records.

Here at Village Motors we have developed our fresh start financing program specifically to help our friends and neighbors. We’ve taken an uncomfortable situation and made it as easy, private, and painless as possible. 

Here are a few more tips to keep in mind:

—Determine how much you can afford based upon your needs and financial situation, and stick to that amount. If you need help, use the Auto-Finance Calculator atwww.autofinancing101.org. 

—Know the difference between leasing and buying. While leasing typically provides lower monthly payments, you do not own the vehicle. You get to use it, but must return it at the end of the lease unless you choose to buy it at that time. 

—Research what vehicles in your price range meet your needs.

—Compare rates and financing terms from several different lending sources to find what best meets your needs.

—Become familiar with common vehicle financing terms. Learn more atwww.autofinancing101.org/resources/glossary.asp.

—Negotiate your finance arrangements and terms. Don’t hesitate to walk away from an offer that won’t work for you.

—Read the contract carefully and make sure all blanks are filled in before signing it.

—Once you’ve financed or leased a car, make your payments on time, as late or missed payments incur late fees and appear on your credit report, which can impact your ability to get credit in the future.

—If you experience financial difficulty, contact your creditor immediately. Repossession can occur if you fail to make timely payments. Vehicle finance companies want to work with you so you can fulfill your financing obligations and reclaim firm financial footing.