| Obtaining and remaining current on loans are both | | | | It is also important to get acquainted with many of the |
| major aspects of establishing a strong credit history. | | | | finance terms associated with auto loans, like annual |
| An auto loan may be appealing for college graduates | | | | percentage rates, leasing and finance charges, |
| soon entering the workforce, according to a recent | | | | according to the release. This will prepare consumers |
| release by Americans Well-informed on Auto Retailing | | | | for the financial decisions they encounter further down |
| Economics. There are several factors to consider | | | | the road. |
| when selecting an appropriate set of wheels. | | | | "An understanding of the vehicle financing process is |
| It's important to create a budget. This should take | | | | especially important for those just starting out on their |
| costs well beyond the initial car payment - like | | | | own," Eric Hoffman, spokesman for AWARE, said. |
| insurance, maintenance, gas and taxes - into | | | | "Responsible management of their monthly car |
| consideration. Several of these factors will be | | | | payments will put them on the road towards building a |
| influenced by a consumer's credit report, according to | | | | positive credit history." |
| the release, making this another significant factor in | | | | Like with any other major purchase, it is also important |
| financing an automobile. | | | | to spend time shopping around. Talking to multiple |
| Those with a strong credit report may be able to | | | | dealers and printing quotes ahead of time can help |
| obtain favorable interest rates on their auto loan. | | | | consumers set their expectations before stepping into |
| Because many insurers also view this as a sign of | | | | a dealership. It may also be helpful to meet with the |
| financial responsibility, premiums on auto insurance may | | | | appropriate financial institution to learn about loan |
| be lower. | | | | options. |
| Some people in this situation may find it difficult to | | | | Consumers may also want to do their shopping during |
| establish the credit history they need, with the Credit | | | | a short period of time in order to limit the number of |
| Card Accountability, Responsibility and Disclosure Act | | | | inquiries on their credit report. |
| of 2009 now making it difficult to for individuals under | | | | A recent report by showed that consumers spend an |
| age 21 to obtain a credit card. Consumers in this | | | | average of 10 hours researching an automobile |
| situation may seek a co-signer to take equal | | | | purchase. This is comparable to time spent looking into |
| responsibility on their loan, meaning that late payments | | | | major home improvements and is twice as loan as the |
| will also affect their credit. | | | | average for researching a home loan. |