Navigating Car Ownership Costs in Michigan: Free Virtual Education Workshop Sept. 27

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Purchasing a car is a major expense, and the costs don’t stop there: insurance, repairs and, of course, keeping the car in gas all take a toll on our budgets. According to AAA, the average cost of new car ownership is $9282 annually. Metro Detroiters are also faced with the challenge that insurance costs in Michigan are amongst the highest in the nation with average costs of $3000 per year, says a new report from MarketWatch.

Gesher Human Services, one of the largest human service agencies in metro Detroit,

which also provides financial education, will be offering a free virtual workshop on Sept. 27 at 1 p.m. on navigating the costs of car ownership. This workshop will serve as a guide to car loans and understanding the process of purchasing a new car.

It will cover topics such as planning for car ownership, the loan application process (including review of a mock car loan document), making smart financial choices, and car buying tips. To register for the free workshop, go to geshermi.org/events.

Gesher’s Financial Education Manager Laltsha Cunningham,

said that some people who sign an auto loan contract are unaware that the loan could be considered predatory, with so many fees, outrageous interest rates and penalties (such as remotely switching off a car) if payment is a day late. She also said that car buyers needed to be very aware of how applying for a car loan can affect your credit score.

“If a car lot runs your credit score several times with a number of different lenders, each time they do so it can reduce your credit score,” she explained. “So, you could start off with a score of 600 then end up in the 500s and be ineligible for a loan.” Cunningham added that some applicants might not even have an adequate credit score in the first place to enable them to get a loan, which would be important to know.

“Transportation along with housing are the two most expensive bills a family has but ensuring that these payments fit into your budget are incredibly important,” said Cunningham. “We don’t want people driving their car off a lot and then in six or 12 months having the car repossessed.”

Cunningham’s top tips include:

• Notify a car lot or car dealership that you only want your credit score run once
• Review payment options and contracts carefully
• Understand the car warranty
• If you are considering a new car look at the depreciation
• Ensure monthly payments, including car insurance, will fit your budget
• Consider likely costs for maintenance
• If you are buying a used car, get the vehicle inspected by a mechanic before committing

Gesher Human Services also provides one-on-one financial counseling to the community which can be scheduled by calling 248.233.4299 or email financialhelp@geshermi.org.

About Gesher Human Services

Gesher Human Services is a non-profit organization providing a bridge to hope and opportunity for people at work, at home and in the community. It is dedicated to helping people across metro Detroit lead more stable and fulfilling lives through workforce development, career mobility, behavioral health, inclusion programming and residential services that serve all metro Detroiters while meeting the needs of the Jewish community.

The organization works with job seekers, people with disabilities, older adults, and the community at large to provide skills, support, and equitable opportunities for people to succeed. Uniting two of metro Detroit’s most influential Jewish human services agencies, JVS Human Services and Kadima, Gesher brings over 110 years of combined experience facilitating equitable employment opportunities and better mental health outcomes for residents.

With a network of more than 400 employees and volunteers across 25 locations in southeast Michigan, Gesher delivers a continuum of services and support that directly impacts the lives of over 26,000 individuals and families annually. More information at www.geshermi.org.