It can seem like a daunting prospect to buy a car. Its particularly daunting for certain groups of people who are weighed down by other issues and responsibilities in their lives. One such group is Americas military personnel. Many are just returning from a deployment overseas. While trying to acclimate back to a normal life, theyre faced with a million little decisions. One of these might very well be getting a new car.
To buy a new car, most people have to sort through a myriad of different financing options. For many military families, there is simply not the means to spend endless amounts of time making financial decisions. It may very well be a struggle to facilitate a major purchase at all.
Yet according to a recent study, about 50% of military personnel plan to purchase a vehicle sometime in the next three years. Approximately two-thirds of those expect to finance that vehicle and are quite well prepared for the event.
Americans Well-informed on Automobile Retailing Economics (AWARE), the non-profit auto financing education group behind the study, discovered that that people in the military are more likely to understand the process of buying and financing a vehicle than the average consumer. They are also more likely to actually take the time to research their buying options before making any kind of decision.
AWARE reported that nearly 37 percent of the military respondents completed three or more hours of research for vehicle financing prior to making their most recent purchase. Only about one quarter or 26 percent of the civilians interviewed completed the same level of research prior to their last purchase.
Military respondents also demonstrated a higher level of comfort with the vehicle financing process compared to their civilian counterparts, with about three-quarters of the military personnel saying they felt informed about vehicle financing.
For military spouses in particular, having a car is seen as a major boost. Not only can it improve earning potential by creating the opportunity to commute to better paying jobs, it offers the potential for more quality time spent with family.
Economic challenges make research an essential component for making sound vehicle financing decisions. For many military families, such challenges include debt troubles or the struggle of living on a fixed income. Interestingly, the military supports financial education programs, many of which are offered through the Department of Defense. Since there are also many civilian resources, it seems that Americas military members are setting a fine example that other Americans would be wise to follow.
This is some of the general advice that military members and their families appear to be following when it comes to making a car purchase.
Number one: Before visiting the dealership, be sure you know what you can afford. Resolve to stay well within your limits financially. You should also know what type of car you really need (versus what you want). Use a budget worksheet as necessary and refer to an auto financing calculator if you want to be super confident about your calculations.
Number two: Be very sure that you have done your homework. Assemble all of the information you need to make the best purchase you can. Collect information online but you should also refer to buying guides and consumer publications to get the maximum amount of information about all of the vehicles on your shortlist. The last thing anyone needs is to be surprised by any detail of such a major purchase.
Number three: Learn to talk the talk. Since you may have to engage with dealers at some point, get to know the terminology they use. Research the industry standards and remember that the situation the definition of the term might be different depending on whether you are buying a car or a truck.