WASHINGTON — Credit unions have placed a lot of emphasis on educating members about their auto financing options when members are preparing to purchase a car. So they'll be glad to know that a survey recently conducted by a nonprofit consumer education group showed more than eight out of 10 Americans know they have many choices when it comes to vehicle financing, and more than half feel informed about the auto financing process.
The public opinion survey by AWARE was designed to ascertain how consumers approach the vehicle financing process. Results found positive trends among consumers concerning their future auto financing plans.
The survey showed that: 67% plan to do more research on their financial options as they consider their next vehicle purchase, with 77% of African-Americans and 80% of Hispanic consumers the most likely to do so; 54% will check their credit score before purchasing their next car or truck; 64% will compare interest rates from different sources; and 70% say they will negotiate their financing on their next vehicle purchase.
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Other important findings of the study included: Nearly 71% of Americans want more information from the vehicle financing industry, especially African-Americans (83%) and young consumers between the ages of 18-24 (68%); nearly half of all consumers (47%) selected "negotiating financing rates" as their first or second choice for what they'd like more information about, followed by "finding good rates" (42%); when given a choice, consumers chose the Internet (41%) as their preferred medium for receiving information on auto financing.
AWARE's Eric Hoffman said financial literacy efforts are paying off as more and more consumers feel informed and know about their options when it comes to auto financing.
He added that the research "gives us a further glimpse into the needs of consumers related to the auto financing process."
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