Auto Financing 101 H.R. Auto Headquarters
Workplace financial literacy programs benefit employees as well as employers, according to the Federal Reserve Board. With that in mind, AWARE provides a host of tools, calculators, articles and other resources that companies may share with their employees to sufficiently prepare them for their auto financing decisions.
The Auto Financing Road Map: A Guide for Teaching Auto Financing
H.R. departments may use this free kit to teach about auto financing in the workplace.
- The Auto Financing Road Map offers educators all the resources and tools needed to hold an auto financing workshop, or to simply incorporate some auto financing principles into an existing financial literacy program. (Spanish version)
Brochures and Other Helpful Resources
Employees may download these materials to read about various aspects of the vehicle financing process and find helpful auto financing tips.
- Understanding Vehicle Financing (PDF - 328 KB) - This brochure, produced by the American Financial Services Association Education Foundation and the National Automobile Dealers Association, and prepared in cooperation with the Federal Trade Commission, provides information to help consumers learn about dealership financing and evaluate their own financial situations before financing a new or used auto. It also addresses auto leasing.
- "Leasing is Different than Buying: Here’s How": This chart from the Federal Reserve explains the differences between leasing and buying to help consumers decide for themselves which option makes the most sense for them.
- AWARE’s Brochures (English - PDF - 137 KB, Spanish - PDF - 512 KB): This brochure provides an overview of the auto financing process.
- Wallet Card: AWARE’s quick guide to the auto financing process can fit right into your wallet or purse! (Spanish version)
- Glossary of Auto Financing Terms - PDF - 19 KB (Spanish version)
- Building a Better Credit Report, From the Federal Trade Commission
- Credit Report Basics, From Experian
- Credit Score Basics, From Experian
- How to Budget & Save, From the Chicago Federal Reserve
AWARE Articles
Our newsletter articles cover many different topics from information on credit reports to tips for negotiating vehicle financing.
- Top 10 Tips for Smart Car Shoppers (Word document - 33 KB / PDF - 377 KB / Spanish version)
- Three Steps to Easier Auto Financing (Word document - 42 KB / PDF - 399 KB / Spanish version)
- Have You Seen Your Credit Report Lately? (Word document - 37 KB / PDF - 716 KB / Spanish version)
- Did You Do Your Homework Before Your Last Auto Financing Decision? Will You Next Time? (Word document - 28 KB / PDF - 15 KB / Spanish version)
- Do You Know the Difference Between Leasing and Buying? (Word document - 28 KB / PDF - 14 KB)
- Shopping for Your First Set of Wheels? Take This Pop Quiz to Find Out if You’re Ready (Word document - 35 KB / PDF - 696 KB / Spanish version)
- You Hold the Keys to Making Good Vehicle Financing Decisions (Word document - 42 KB / PDF - 695 KB / Spanish version)
- Newlyweds are in the Driver's Seat When Purchasing Their First Vehicle (Word document - 28 KB / PDF - 700 KB / Spanish version)
- Assess Your Finances During Peak Car and Truck Buying Season (Word document - 30 KB / PDF - 14 KB)
- Taking Steps to Boost Your Credit Score (Word document - 34 KB / PDF - 15 KB)
Calculators / Interactive Learning
Employees may also explore this collection of powerful interactive tools, which can help determine sample monthly payment figures and provide assistance in calculating savings for different vehicle down payments.
- Auto Financing Monthly Payment Calculator: Use this tool to calculate your potential monthly payment! (Spanish version)
- Can you afford that car or truck you're dreaming of? These downloadable interactive Excel spreadsheets will help you calculate your budget, and then tell you whether or not you can afford the car or truck you're contemplating. This "Affordability Gauge" calculator takes ALL vehicle related costs into consideration, so will give you a very real picture of your true budget.
- Monthly Budget/Affordability Gauge: Download this version if you are trying to get a general overview of your budget. This is particularly useful if you are trying to make a quick decision. (Spanish version)
- Daily Budget/Affordability Gauge: This version is a particularly useful tool to paint a very accurate picture of what you're spending, and what you have left to dedicate toward new vehicle expenses. (Spanish version)
- Auto Loan Calculator: This calculator - created by Young Money - allows you to play with different loan terms, down payments and trade-in values to see how it will affect your monthly payments and the total cost of your vehicle and financing over time.
- Auto Financing Tune Up: Take this quiz to check your auto smarts! (Spanish version)
Downloadable Worksheets
Employees may download and print worksheets to help them complete a monthly budget and compare financing rate quotes from multiple creditors.
- Budget Worksheet: Find out what you need to consider when developing your monthly budget with this worksheet from the "Understanding Vehicle Financing" brochure.
- Comparison Worksheet: It's important to shop around for your financing. Use this worksheet, from the "Understanding Vehicle Financing" brochure, to compare financing rate quotes from multiple lenders.
Resources for Young Adults and First Time Car Buyers
AWARE provides articles specifically geared towards the concerns of first time car buyers, as well as links to financial literacy guides for young adults.
- "It All Adds Up": This website from the National Council of Economic Education provides information on budgeting, credit, saving for a car, investing, and other important life skills.
- "Building Wealth: A Beginner’s Guide to Securing your Financial Future": This website, brought to you by the Federal Reserve Bank of Dallas, offers basic guidance on personal finance and setting your financial goals.
- AWARE article: Pop Quiz for 1st Time Car Buyers (Word document - 35 KB / PDF - 696 KB / Spanish version)