Auto Buying and Financing

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The Resource Center content, including all videos and other media, is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial or other advice. The advice and information contained in the Resource Center is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation


This video provides an overview of Advancial Federal Credit Union's specialized auto loan program for expatriates. It explains the auto loan process for both new and used vehicles, highlighting the loan terms, down payment, and financing options. The video also discusses additional coverages like extended warranty, GAP insurance, and credit life protection. It delves into the difference between buying and leasing a vehicle, offering insights into loan payment calculation and the overall loan process. The video emphasizes Advancial's partnership with expatriates to ease their transition to the United States by providing financial solutions and offers relevant contact information for further assistance.


Hello, and welcome to the auto loan process with Advancial. During the next few moments, we'll discuss our specialized program for expatriate individuals, and we'll take a detailed look at our ExPAT auto loan process.

Should you have any specific questions, we will share contact information at the end of the video.

Let's get started with who we are. Advancial Federal Credit Union is a full service financial institution that has partnered with your company to offer financial wellness and superior banking resources, including lending options for employees, upon their arrival to the United States.

Typically, an individual would need a credit history and social security number to initiate their banking here. However, Advancial is able to offer banking solutions even prior to establishing that social and credit history. This unique program makes your transition easier and less stressful by providing financial options that are typically unavailable to such scenarios.

Today's presentation will go into detail about the auto loan process with Advancial, the requirements involved in the loan process, and what to expect with the purchase of your car.

Advancial offers auto loans on new and used vehicles. We'll begin with the new vehicles. Please keep in mind the actual pre approval process could take 1 to 2 days depending on your situation. But once you're pre approved, you'll have 60 days to truly finalize the loan for your vehicle. To avoid any delays in processing associated with your vehicle, we suggest making your purchase in the state where you plan to reside.

Moving to another state after that loan completion and having to re-register your vehicle in a different state could result in additional taxes and or fees.

We offer up to 72 months auto loan terms, and we can finance up to 115% of the invoice value for a new vehicle, including tax, title, and license fees. You can also include a warranty, loan protection and GAP insurance in your total amount financed. More on those items coming up shortly.

Depending on your situation, a down payment may be required.

Other factors such as income may impact the loan amount that's approved for finance as well.

To research the price of the vehicle you're interested in, you can visit jdpower.com/cars.

You'll see an invoice price and an MSRP price.

Pay particular attention to the invoice price as this is the price that we use when considering the loan value.

If you're considering purchasing a pre owned vehicle, we can also finance up to a 115% of the clean condition trade in value, including tax, title, and license fees. You may also include extended warranty, GAP insurance, and credit life protection in your total amount financed.

Used vehicles with high mileage and or are older than 60 years will be viewed on a case by case basis for approval.

Again, it's a great idea to visit jdpower.com/cars to determine that clean trade in value for the vehicle you're interested in purchasing.

When buying a vehicle, I mentioned that you may want to consider those extra warranties and insurances. Purchasing these additional coverages can prevent the burden of unplanned expenses when unexpected circumstances arise.

The 3 primary options include an extended warranty, GAP insurance, and credit life protection.

An extended warranty can provide further protection for your vehicle once the original manufacturer's warranty expires.

GAP insurance can protect you from owing the difference of how much is left on your auto loan versus what your insurance company will pay if your vehicle has been damaged in an accident.

We'll share an example of that gap coverage here in just a second.

Just know GAP insurance is a one time fee, generally $365 and can be included in your loan at the time of loan closing.

Credit life and credit disability can also be added to your loan to assist in making your car payments in the event of specific illnesses or death.

Ask your Advancial representative for more information about these options.

Let's go ahead and take a look at that GAP savings example.

As previously mentioned, GAP insurance can be included in your loan and can help offset costs associated with accidents.

Let's take a look at a scenario where you've financed a vehicle for $20,000. And let's say your vehicle was in an accident, but the insurance is only going to cover $15,000 in damages.

You still owe $20,000, but the insurance is only wanting to cover $15,000.

That leaves a gap of $5,000 that you'll have to come out of pocket for. But if you had GAP insurance in this situation, your gap would cover that $5,000 difference.

Keep in mind though that placing that GAP coverage on your vehicle cannot be done after the fact. It's a coverage that can only be placed on the vehicle when you're financing it at the dealership.

In addition to auto loans, Advancial also offers an auto lease option.

Leasing a vehicle instead of purchasing one, means that you'll pay for the vehicle on a monthly basis, still similar to a loan. But once that determined length of the lease has ended, you will then return the vehicle to the dealership.

For example, if you chose to lease for 3 years, you're agreeing to use that vehicle for those 3 years, making those required monthly payments. But at the end of that 3 year term, you return the vehicle. It does not belong to you. At that time, a new agreement and contract can be negotiated if you're looking to extend your lease.

Advancial partners with a leasing company where a dedicated leasing agent will work with you one on one to locate, secure, and deliver your new or pre owned vehicle on lease. If you're interested in a lease, an Advancial representative can connect you with a specialized agent who will further discuss the pre approval and detailed leasing terms.

Take a look at the chart to understand the differences between buying a vehicle and leasing. You'll see those big differences really show up in the loan terms and vehicle ownership.

Advancial offers the same great rates for new and used vehicles. And to help keep more money in your wallet, we also offer a discount of .25% on your interest rate if you set up automatic loan payments. If you would like those payments to be withdrawn from your Advancial savings or checking account, you can advise the member service representative who's assisting you with a loan. Your monthly loan payment will depend on several factors such as loan amount, interest rate, and the loan term. We offer a vehicle loan payment calculator on our website at advancial.org/calculators.

Your first loan payment will be due 45 days from the date you sign your loan agreement. However, if you would like, at the time of your loan closing you can opt to pick your first payment due date as long as it's within that 45 day timeframe.

Let's discuss the actual auto loan process in itself and what to expect.

Generally speaking, this whole auto loan process takes place once you've arrived to the states. However, there are stipulations that allow for the auto loan preapproval process to take place a week prior to arrival. It's super important to note that your new address, the US address, must be on file with us before your loan can be finalized.

Please make sure the city and the state of your address matches the address on all loan documents.

After the preapproval process, you'll wanna contact the dealership where you plan to actually purchase the vehicle. So once you test drive that vehicle and you're certain, this is the one you wish to purchase, go ahead and contact your Advancial representative to let them know that you're ready to finalize the loan. The dealership will send Advancial a purchase order and Advancial will prepare your final loan documents for you to sign.

The purchase order for a new or used car is just a document that itemizes the sales price, the fees, rebates and any intended down payments made by the buyer. Advancial will use that document to add the specific vehicle information to your auto loan to further accurately represent the total cost and finance amount. If you're purchasing a car outside of the state of Texas, then we will also need what's called a guarantee of title from the dealer. This all happens behind the scenes with your Advancial representative. And you should be ready to drive off the lot or have your vehicle delivered to you as soon as the dealership receives appropriate payment from Advancial.

This is a very well oiled process aiming to get you on the road stress free.

Do note here though that each dealership has its own requirements for accepting and receiving payment from lenders.

Advancial will FedEx the check to the dealership which means the check will not get there until the next day after you've signed the loan documents.

You may have to wait until the dealership actually receives that check-in hand before you can take possession of the vehicle and drive it off. This whole process from start to finish should be about 2 to 4 days, unless more time is needed for vehicle shopping, consultation, or delivery.

As we conclude, I would like to mention a few questions that we get with the auto loan process.

In regards to loan processing fees, Advancial does not charge a fee to process your auto loan. Additionally, there are no fees to pay off your loan early.

We also get the question where can I calculate my payment? Again, you can visit advancial.org/calculators to pull up an estimated loan payment.

We also do get a lot of questions about interest. So interest is based on the outstanding loan balance.

Each time you make a payment to your vehicle loan, our system will calculate what portion of that is applied towards interest and what portion will be applied to the principal loan balance. If you pay off the loan early, then you'll be paying less in overall interest.

If you wanna research our USA auto loans, you can visit advancial.org/expatriate-banking. If you scroll down about midway of that page, you'll see an option on the screen for auto loans and leases. There you can kind of poke through some of our options that are available to you.

For your convenience, we have provided the websites mentioned during the presentation today. So that it can hopefully help you throughout the auto loan process. So go ahead and take a moment to capture these websites that you might find helpful.

If you're ready to get started with your auto loan, please contact your representative from Advancial who helped you open your account originally. And if you cannot recall that contact, you can visit advancial.org/passportUSA and click on request information.

That will bring up an entry page that you can fill out and submit. And once our representatives receive that, they will reach out to you shortly. You can also email our uptownteam@advancial.org and they will be happy to assist you from there.

Thank you so much for attending today. Again, that website is advancial.org/passportUSA.

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The Resource Center content, including all videos and other media, is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial or other advice. The advice and information contained in the Resource Center is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation