Depending on where families live, purchasing a vehicle can factor into a family’s economic mobility in many ways. Owning a vehicle may allow a family to accept a new job or travel to school. Purchasing a car through a loan builds credit and changes a family’s budget.

Buying a car is a long-term process. When planning a car-buying goal with families, staff can discuss these ongoing steps with them:

• Set a reminder to make monthly payments on time.
• Adjust their budget to include car-related expenses.
• Register their vehicle and purchase insurance.

Ideas for Action

1. Calculate a car budget.

Staff can support families in determining how much they can afford to spend on a vehicle. Make sure to take the whole cost of the car into account, including insurance and registration costs.

Start the Conversation

• "Considering your current budget and the other financial goals you have, what feels like the right budget for a car?”

• Comparing Auto Loans (worksheet)

2. Save for a down payment.

Staff can support families in determining what steps they need to take to reach their savings goal.

Start the Conversation

• "Now that we know what kind of monthly payment you’d like to have, we can calculate the amount of down payment that would make that possible.”

• Savings Plan (worksheet)

3. Check their credit score.

Staff can help families find their credit score and discuss if they should spend time building credit before getting an auto loan.

Start the Conversation

• "Credit can influence the interest rate on your loan. How can you ensure you get the best loan option?”

• Accessing and Reviewing Credit Reports and Scores (ideas for action)

4. Find a car and shop for the best loan.

Staff can help families navigate the process of finding the loan that makes the most sense for them. Staff can share resources on auto loans and support the family in comparing their options.

Start the Conversation

• "What is most important to you about your future car?”

• Auto loans (guide)

Learn More with These Resources

• Getting an Auto Loan (guide)
• Buying a New Car (guide)
• Buying a Used Car (guide)

Last Updated: September 7, 2023