Can I get an Auto Loan from any bank / credit union or do I have to bank with them for long time?

• You can apply for auto loan at any bank or credit union at anytime. No need for long history

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Which offers better Interest Rates?

• Credit Unions tend to offer better interest rates,  if you have good-great credit. If you have a lower credit score, banks may still offer loan, but at a higher interest rate

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If I get declined by one bank, does that mean I will be declined by all?

• No, some banks are more risk adverse and still may approve loan, when others won't

 

Can't get approved for full amount?

• If you have the cash. You can put down deposit, to make up the balance

• Ask bank about "Personal Loan" to help cover balance, if needed

​Bad Credit or No Credit?

• ​Expect to pay higher interest rates

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What does "Affordability" mean?

•  Affordability means: What can you afford without compromising quality of life; while ensuring all necessities are paid

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How do I budget for a vehicle and know that I can afford monthly payments?

• Add up your total "Net" income per month (Take home income after taxes)

• Write down an itemized list and amounts of current reoccurring necessity expenses (Examples below)​​

Expenses

Fixed

• Rent --------------$2,500 mo

• Auto Insurance -----$200 mo

• Health Insurance ---$600 mo

• Phone ---------------$60 mo

• Cable/Internet ------$140 mo

• HECO Electric Bill ----$150 mo

Variable​

• Groceries-----------$300 mo

• Entertainment ------$200 mo

• Gas -----------------$150 mo

 

Total Net Income --------$6,000 mo

Total Monthly Expenses --$4,350 mo

Remaining ---------------$1,650 mo​

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The information above is intended as educational purposes only and not financial advice. Please, consult with a CPA for specific questions