SAN ANTONIO (3/25/13)--Generations FCU in San Antonio recently launched a first-time auto-buyers program to help members deal with financial problems they may encounter when trying to buy their first new or used car.
The Your Ride, Your Rules program requires first-time buyers to be at least 18 years of age, provide proof of three months of income, show proof of insurance coverage and have no prior auto-loan credit. The loan maximum is $25,000, and the term is for 48 months. Participants' payments cannot exceed 20% of their monthly gross income (LoneStar Leaguer March 22).
"Buying your first car, no matter if it's new or used, can be a nerve-wracking and difficult experience, especially when it comes to financing," Andrew Wilson, Generations vice president of lending, told the Texas Credit Union League. "As a credit union we are committed to being an advocate for our members. Your Ride, Your Rules helps them get a fair deal on that first car and also to be successful in paying it off and building a strong credit history."
The program requires borrowers to complete a one-hour online Financial Literacy 101 course to help ensure they can repay the loans. Topics include financing a car purchase, the total cost of ownership, negotiating a sale price, common mistakes to avoid when purchasing an auto and how to avoid surprises.
Program applicants do not need a co-signer for the loan and are not required to have a two-year employment history.