First Time Auto Buyer Program


 


Are your ready to buy your first car? 
We can help your get started with the First Time Auto Buyer Program!

 

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First Time Auto Buyer Program 
Are you ready to buy your first car? If so, we can help with our First Time Auto Buyer Program.
This loan type is designed for those who have little to no credit and are ready to embark on the purchase of their first automobile. This loan comes with low rates, manageable terms and is an excellent way to establish a credit history.

Planning is important to prevent surprises when you buy your first car. We offer guidelines on vehicle searches and online resources, as well as our friendly loan professionals are experienced in vehicle lending and can guide you through many of your auto buying considerations.

In order to get started, please review the topics below. You will find:

  • Qualifications and Program Details
  • Lending Definitions
  • The First Time Auto Buyer Quiz
  • When you submit the quiz, you will be directed to the Application Form.

 Qualifications and Program Details:

Please note, to apply for the First Time Auto Buyer Program, you must be a PrimeSource Member (or Eligible for Membership) Click here for complete PrimeSource Eligibility guidelines.

  • Must be at least l8 years old and able to repay the loan 
  • Must be employed for a minimum of one year or have a qualified co-signer
  • No more than 12 months of auto loan payment history reflected on credit report and no derogatory credit may be present
  • Minimum gross monthly income requirement is $1,000.00
  • Monthly payment to not exceed 20% of gross income, including insurance premium
  • Proof of auto insurance required
  • Maximum loan amount is $15,000.00
  • Terms up to 72 months
  • Maximum Loan to Value 95% with a minimum 5% cash down. Minimum cash down requirement is not required when a qualified co-signer is provided
  • Must complete the First Time Auto Buyer Quiz prior to applying for the First Time Auto Buyer Loan

PrimeSource can provide assistance with your auto buying decisions before you buy!

      Review the Lending Definitions below to familiarize yourself with how auto buying works.
    
      Take the First Time Auto Buyer Quiz.
 
      Submit a Loan Application for pre-approval.
 
      Shop for your first car!
 
Feel free to contact us if you have any questions.
  
 
LENDING DEFINITIONS
 
There is a lot to think about when buying a car. How do you finance it? What does all the terminology like “lienholder” and collateral” mean? The terminology below will help to explain certain definitions used in the lending proces­s­ so that you can be fully informed about your auto buying decision before you buy.
 
Credit Score: Typically referred to as your “FICO” (Fair Isaac Credit Organization). A credit score is typically between 500 and 800 (the higher the number the better the score). A variety of factors go into your credit score, including if you pay your bills late, how many loans you have paid off, how long your loans have been open, etc. A good rule of thumb for building credit is to just make your payments on time!
 
Interest: Interest is the cost you pay to BORROW MONEY. The lower the interest rate, the less you pay back. Interest rates are determined by several factors, including the government, economy, the financial institution giving the loan, and your credit score.
 
Finance Charge: This is how you will pay in interest and fees over the life of the loan. A car might be priced at $10,000 but if you pay 7% for 60 months the total amount you will have paid back will be $11,883. Your finance charge would be $11,883 – $10,000 = $1883.
 
Collateral: This describes what property you are offering your financial institution to secure the loan with, in case you don’t pay back the money you borrow. In this case it will be a car.
 
Lienholder: The lienholder is the lender whose name is on your collateral during the term of the loan. For instance, if you take out a car loan from PrimeSource Credit Union, until you pay off your loan, your car is the collateral and PrimeSource Credit Union is the lienholder.
 
Debt Ratio: How much money you owe each month (your debt) compared to how much income you receive. For example, if you owed 3 loans totaling $850 dollars each month, and your income was $2500 per month, you would take $850 divided by $2500 to figure out your Debt to Income ratio. In this case, it would be 34% (the lower the number the better).
 
Loan Term: This is how long it will be before your loan is paid off. A good range for car loans is anywhere from 36 – 84 months (the majority are 60 months).
 
Pre-Approval: When you have finally found the car you have been looking for, it’s easy to get pre-approved, you can even apply online to save time! With a pre-approved auto loan, you know how much you’ll qualify for, before you visit the dealership. Plus, you’ll eliminate the expense and pressure of dealer financing. Take the First Time Auto Buyer Quiz, then you can apply and get pre-approved today!
 
There is one more thing we want you to be aware of. When you purchase a car and have a lien against it, most financial institutions require that you have full coverage insurance instead of just liability. Be prepared to pay a little more!
 
These lending definitions should give you a good start on understanding the different components of a loan.  Contact us or call if you have any questions (509)838-6157 or (800)660-0004.

Please note, to apply for the First Time Auto Buyer Program, you must be a PrimeSource Member (or Eligible for Membership) Click here for complete PrimeSource Eligibility guidelines.
 
Now take the First Time Auto Buyer Program Quiz AND THEN you can apply for your loan!

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