Car Ownership Essentials: Robins Financial Credit Union

Once you’ve decided to buy a car,
you’ll probably be itching to make it happen, and to get behind the wheel. But before you become a car owner, you should note these five essential areas of car ownership. First, let’s talk about your title. The title is a legal document that indicates the ownership of the car. If you’re financing a car, the lender will hold the title,
with your name and the lender’s on it. Once your car is paid off, the title
will be transferred to you. In order to sell a car, you’ve got to
transfer the title to the buyer. Anytime you work through a dealership,
they will help with the title transfer process. A second critical document to know about
is your registration. Registration tags are stickers that go on your license plate, indicating you’re legally registered. During a sale, registration requirements are
often handled at the same time as titling, whether at a dealership, or at the DMV
in the case of a private sale. Third, you want to figure out how you’re going
to make payments for your loan or lease. Like any other bill, you’ll want to pay this on time
to avoid penalties or damaging your credit. One way to ensure you never miss a payment
is to set up an automatic transaction. This can be an automatic transfer from your
bank account, or even with a debit card. Fourth, and also related to finances, you’ll want to
make sure you’re properly safeguarding your loan. This means paying attention to how much you owe, compared to how much the car is worth. If you owe more than the car is worth, you could be on the hook for thousands of dollars if your vehicle is totaled. For this reason, you can purchase GAP insurance. Some situations where gap insurance
may be necessary include: when your down payment is
less than 20% of the car’s price, when your loan term is longer than 60 months, when your car has a rapid depreciation rate, and finally – since your car is a big piece of machinery – you’ll want to figure out a maintenance plan. If you like your dealership, you may simply bring it in
for scheduled oil changes and maintenance. But as a car owner, you may also want to get used to periodically checking your oil and fluid levels, tire pressure, lights, and more. Building a simple checklist to run through
can ensure your car performs at its best, and maximizes its value
if you need to sell it down the road. If you have any other questions about buying,
financing, or maintaining a car, Reach out to our auto loan experts at
Robins Financial Credit Union. For more information, call, click, or
visit any of our branch locations.

Paul Whisler

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