School bands and orchestras from Atlanta to Los Angeles are methodically fulfilling the rooms of commencement exercises glorifying the harmonic tune of Pomp and Circumstance. This time of the year typically means that hundreds and thousands of graduates have completed their rite of passage. Along with that rite, many of the graduates will be entering into the workforce and they need the perfect ride to show the world they have finally arrived.
But, as we all know, most of today’s graduates are saddled by debt from student loans and they cannot afford to swing a down-payment for a new ride. Moreover, they are not in a financial position to make that first car payment since that “real job” does not start until 90 days from now. With the whole world in front of them, what is a degree-carrying graduate to do?
Well, there is no need for the Class of 2006 to fret. Just like The Tom Joyner Foundation offers grants to aid traditional and non-traditional students attending HBCUs with their education, as a graduation present and in hopes of instilling brand loyalty, most automakers offer incentive programs to assist all upcoming and recent graduates in purchasing a new vehicle. These programs usually include special financing rates for purchasing or leasing, deferred payments up to 120 days and rebates ranging from $400 to $500. In many instances, the rebate can be used in conjunction with any regional or national incentives being offered.
These incentive programs are typically open to upcoming graduates up to three to twelve months before graduation, or two years after acquiring a degree from an accredited 2-or 4-year college or university, graduate program, junior college, community college, trade school or nursing school. And some automakers like Ford and Dodge target high school graduates. Unlike Dodge’s high school program, Ford requires the graduates to be enrolled in some type of post-secondary educational program by the fall. Furthermore, while every automaker is focusing on helping the graduates get into new cars, Acura, Audi, BMW, Honda and Volkswagen are also providing assistance on their pre-owned certified vehicles.
As it relates to financing, several automakers are aware that a number of graduates are in a catch-22. So, in order for the automakers to accommodate this group, many overlook some of the components typically needed to secure a car loan, an adequate credit history and work history. However, proof of income is required to ensure the car notes can be made. Thus, the aforementioned credit concessions allow graduates to secure financing with favorable interest rates without the assistance of a co-signer. Unfortunately, most automakers will not excuse bad credit. To ensure you are receiving a favorable interest rate based on your credit history, visit www.jeffcars.com tips to avoid predatory auto lending practices. And for additional information about the specifics of each automakers incentive program for upcoming and recent graduates, click here.
Jeff Fortson is an Atlanta-based automotive consultant who holds a car-buying workshop to aid women and minorities with financing, purchasing and servicing their vehicles. He is also the editor of www.jeffcars.com, a car-buying educational Web site for minority consumers.
