Auto Buying and Financing

Summary

This video provides an overview of Advancial Federal Credit Union's specialized auto loan program for expatriates. It explains the auto loan process for both new and used vehicles, highlighting the loan terms, down payment, and financing options. The video also discusses additional coverages like extended warranty, GAP insurance, and credit life protection. It delves into the difference between buying and leasing a vehicle, offering insights into loan payment calculation and the overall loan process. The video emphasizes Advancial's partnership with expatriates to ease their transition to the United States by providing financial solutions and offers relevant contact information for further assistance.

Transcript

Welcome to Advancial. During this presentation, we will discuss the auto loan process for our inbound USA program.

This information is designed to walk you through the general auto loan process and help you better understand what to expect upon your arrival to the US.

Advancial Federal Credit Union is a full service financial institution that is partnered with your company to offer auto financing for expatriates.

Advancial's Inbound USA program offers this product and others to those who are new to the US and do not have a credit history here in the states.

This unique program helps the US transition to be easier and less stressful by providing financial options that are typically unavailable to individuals in this scenario.

Advancial offers auto loan options for both new and used vehicles.

We will begin with the new vehicles.

The auto loan pre approval process generally takes only a day or two and once pre approved, you'll have sixty days to finalize the loan for your vehicle. To avoid any delays in processing associated with your vehicle and to avoid any extra taxes and fees, you should wait to purchase your vehicle until you are here in the states where you will permanently reside.

Advancial's auto loan terms can go up to seventy two months and we will finance up to one hundred and fifteen percent of the invoice value including tax, title, and license fees. You can also include a warranty, loan protection, and gap insurance in your total amount financed.

You can visit jdpower.com/cars to research the price of the vehicle you're interested in. Pay particular attention to the invoice price. This is the price we use when considering your loan.

If you are considering purchasing a pre owned or used vehicle, you'll notice a few different values based on certain vehicle conditions.

Advancial will finance up to one hundred and fifteen percent of the clean trade in value including tax, title, and license fees. You may also include extended warranty, loan protection, and gap insurance in your total amount financed.

With used vehicles, you do need to be mindful of not only the condition but the mileage as well. Higher mileage can sometimes result in the need for you to have a down payment as the loan to value is considered.

Again, visit jdpower.com/cars to determine that clean trade in value for the vehicle you're interested in purchasing.

When buying a vehicle, you may want to consider purchasing some additional coverages that can prevent the burden of unplanned expenses when unexpected circumstances arise.

Advancial offers extended warranties, gap protection, and credit life protection.

An extended warranty can provide further protection for your vehicle once the original manufacturer's warranty has expired.

Gap insurance can protect you from owing the difference of how much is left on your auto loan versus what your insurance company will pay if your vehicle has been damaged in an accident.

We will share an example of gap coverage in the next slide.

Gap insurance is a one time fee of four ninety five and can be included in your loan at the time of purchase.

Credit life and credit disability protection can also be added to your loan to assist in making your car payments in the event of specific illnesses or death.

Ask your Advancial representatives for more information about these additional options.

Gap savings example. As previously mentioned, gap insurance can be included in your loan and can offset costs associated with accidents.

For example, if your vehicle is damaged beyond repair and the insurance company is willing to pay fifteen thousand toward your loan, but you still owe twenty thousand, gap insurance will cover that gap of five thousand dollars.

Keep in mind that placing gap coverage on your vehicle can only be purchased when you finance the vehicle. And, again, that one time cost is four ninety five dollars.

While speaking with your Advancial representative, you will receive an approved interest rate. That rate will be valid for sixty days.

After sixty days, if a vehicle has not been selected, you'll need to contact your Advancial representative to be pre approved again if you're still wishing to purchase a vehicle.

A discount of point two five percent can be applied to your interest rate if you set up automatic loan payments.

If you would like the payment to be withdrawn from your Advancial savings or checking account, please advise the member service representative who is assisting you with the loan. Your monthly loan payment will depend on several factors such as loan amount, interest rate, and loan term. We offer a vehicle loan payment calculator on our website at Advancial.org. You can find that website notated at the end of this presentation.

Your first loan payment will be due forty five days from the date you sign your loan agreement, or you can pick a due date that falls any time prior to that first forty five days.

Once you have arrived at your permanent address here in the States and your loan application has been submitted to the branch, it's now time to start narrowing down your vehicle options based on that preapproval letter. We require that you test drive the vehicle to be sure you've chosen the appropriate car that fits your needs best. At that point, contact your Advancial representative to let them know that you are ready to finalize the loan.

Advancial will prepare the final loan documents for you to sign. Once the documents are signed and the dealership has received the appropriate payment from Advancial, the car is yours to take home. The whole process should only take a couple of days unless more time is needed for vehicle shopping, consultation, or delivery.

In addition to auto loans, Advancial also offers an auto lease option.

Leasing a vehicle instead of purchasing means that you'll pay for the vehicle on a monthly basis, similar to a loan. But once that determined length of the lease has ended, you'll then return the vehicle to the dealership. You can look at it as borrowing the vehicle for a set time frame, paying a certain amount each month.

For example, if you choose to lease for three years, you are agreeing to use that vehicle for three years and make the required monthly payments during that time. At the end of the three years, the vehicle does not belong to you and it must be returned to the dealership unless a new lease agreement is negotiated.

Advancial partners with a leasing company where a dedicated leasing agent will work with you one on one to locate, secure, and deliver new or pre owned vehicles on lease.

If you're interested in a lease, an Advancial representative will connect you with a specialized agent who will then further discuss pre approval and detailed leasing terms.

As we conclude, take a moment to review the slide for common questions.

Some financial institutions charge you a fee to create a loan with them. These are called loan processing fees. With Advancial, however, you will not be charged a loan processing fee to obtain your auto loan with us.

Where can I calculate my payment?

Advancial has several great tools to help you understand the cost of owning or leasing a vehicle. You can visit the website on your screen.

How is interest charged on my vehicle?

Interest is based on the outstanding loan balance.

Each time you make a payment to your vehicle loan, our system will calculate what is applied towards interest and what will be applied toward the principal loan balance. If you pay the loan off early, you'll be paying less in interest overall.

In addition, should you decide to pay your loan off early, there are no penalty fees to do so. And lastly, as soon as you receive your social security number, be sure to contact your Advancial representative to ensure that we update that on your account. They will send you a simple form to fill out and return.

For your convenience, we have provided a few websites to help you explore and understand your auto loan. Take a moment to capture the websites that you might find helpful.

From all of us here at Advancial, welcome to the US. We hope the information shared in this video will help you through the auto loan process. Thanks for watching. Have a great day.