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WASHINGTON, D.C. — With the thought that U.S. military
personnel should be honored on more than just Veterans Day, AWARE rolled out
auto finance tips to help service members save time and make educated decisions
when buying a vehicle.

AWARE, which stands for Americans Well-informed on Automobile
Retailing Economics, is a vehicle financing industry coalition to help
consumers understand how auto financing works. The group provides potential
buyers of new and used autos with the tools and resources they need to
successfully navigate the auto financing process.

AWARE began its military recommendations by reiterating an
understanding of key terms:

—Annual Percentage Rate: the cost of credit for one
year expressed as a percentage.

—Amount Financed: the dollar amount of the credit that is
provided to or on behalf of the buyer

—Finance Charge: the dollar amount that the credit will cost
the buyer. It includes interest and other charges related to the extension of
credit.

—Lien: a legal claim on ownership of the vehicle stemming
from a debt. If the buyer does not make the payments, the lienholder can
repossess and sell the vehicle as full or partial payment of the debt.

—Dealer
Financing or On-Site Financing: financing that a buyer obtains from the
dealership to buy a new or used vehicle

—Off-Site Financing: financing that a buyer gets from his or
her bank, credit union or other financial institution to pay for a new or used
vehicle

The group also suggested military personnel know the
difference between buying and leasing:

—Buying means you will own the vehicle once the loan is paid
in full.

—When you lease a vehicle, you have the right to use it for
an agreed-upon number of months and miles. At the end of the term, you return
the vehicle, unless you choose to buy it.

For more detailed information, view the Federal Reserve
Board's "Keys to Vehicle Leasing" at www.federalreserve.gov/pubs/leasing . 

Furthermore, AWARE suggested buyers should determine what they
can reasonably afford:

—Create or review your budget to determine if you have
sufficient income to take on an additional monthly obligation. Make sure to
account for costs of insurance, maintenance, parking, etc.

—Use AWARE's online calculator to determine estimated
monthly payment after entering purchase price, down payment, term, and APR.

Moreover, the group rattled off several other
recommendations to members of the military:

—Compare financing offers.

—Negotiate financing terms to meet your needs.

—Do not sign a contract that you have not read or that
contains blank spaces.

—Carefully read the contract and understand what will happen
if you are deployed.

—A first-time borrower with limited or no credit history may
need someone with well-established credit to co-sign the finance contract.

—A co-signer assumes equal responsibility for the contract,
and the account history will be reflected on the co-signer's credit history.

—Extended service contracts, credit insurance, and
guaranteed auto protection are optional products. Ask questions about them and
only sign up for the products you want.

"Dealers and financial services providers work to ensure the
car-buying process is smooth and transparent for all consumers, including our
active and retired members of the armed forces," explained Eric Hoffman, AWARE
spokesman.

"To further support this objective, the vehicle finance
industry has compiled some information explaining important terms and concepts
in the process," Hoffman added.

AWARE's members include: American Financial Services
Association, National Automobile Dealers Association, National Association of
Minority Automobile Dealers, American International Automobile Dealers
Association, Ally Financial, American Honda Finance Corp., American Suzuki Financial
Services, AutoNation, Ford Motor Credit Co., Group 1 Automotive, Lithia Motors,
National Auto Finance Co., Nissan Motor Acceptance Corp., Saab Financial
Services Corp., Sonic Automotive, Toyota Financial Services, United Auto Group
and Wells Fargo Auto Finance.

Additional educational information in English and Spanish
can be found at www.autofinancing101.org.