Generations Federal Credit Union is hoping to help first-time car buyers who may be intimidated about the shopping and financing process.
The $400 million cooperative in San Antonio has launched its Your Ride, Your Rules program for members buying a car for the first time.
Applicants do not need a two-year employment history and do not need a co-signer for the loan, according to Generations FCU. First-time buyers cannot have derogatory history and their payments cannot exceed 20% of monthly gross income. The loan maximum is $25,000 and the term is for 48 months.
To qualify, first-time buyers need to provide proof of three months of income, be at least 18 years of age, have no previous auto loan credit, and show proof of insurance prior to funding, the credit union said.
To ensure their financial success, Generations FCU said it also requires applicants to complete a one-hour, online financial literacy course that covers topics such as the total cost of ownership, financing a car purchase, negotiating a price, avoiding surprises, and common mistakes when buying a car.
Introducing a fixed-rate monthly payment schedule enables that first-time buyer to establish a history of monthly budgeting and paying off a loan, said Andrew Wilson, vice president of lending at Generations FCU.
“It provides them with successful building blocks and, perhaps most importantly, provides them the confidence to build credit independently as they begin to go out and establish themselves in today’s challenging economic environment,” Wilson said.
