What You Should Know Before Purchasing a Vehicle in Alaska

For many people, a vehicle can be a significant purchase. For this reason, you should know as much as you can about the auto loans process and other vehicle facts before visiting a dealership.

1. What should be the limit for your monthly auto loan payments?
   When setting a budget for buying a vehicle, financial experts recommend that the resulting monthly auto loan payments do not exceed 15 percent to 20 percent of the buyer's gross monthly income.
2. In addition to the monthly auto loan payment, what other costs should be factored into one's vehicle budget?
   When budgeting for a vehicle purchase, other factors that should be considered include costs associated with maintenance, gas and auto insurance.
3. What are the benefits of securing an auto loan before visiting a dealership?
   Securing an auto loan before visiting a dealership can have several benefits, including giving the buyer greater negotiating power with the dealership. A dealership also might offer the buyer an even better auto loan deal.
4. What is the recommended minimum down payment you should make when purchasing a vehicle?
   On average, new vehicles typically depreciate by 20 percent during their first year of ownership. For this reason, financial experts recommend that buyers put down at least 20 percent toward the purchase of a vehicle.
5. What is the state minimum auto insurance coverage limits in Alaska?
   The state minimum auto insurance coverage limits in Alaska are 50/100/25: $50,000 for bodily injury for one person, with a maximum of $100,000 for all injured persons, and $25,000 for property damage.
6. What are some of the most common auto insurance discounts?
   Some of the most common auto insurance discounts include multiple policy discounts, safe driver discounts, low-mileage discounts, defensive driving discounts and anti-theft/safety device discounts.
7. What are common coverage options to consider when purchasing auto insurance?
   Common auto insurance coverage options to consider include bodily injury coverage, liability coverage, collision coverage, comprehensive coverage and uninsured or underinsured motorist coverage.
8. When working to improve your credit score, what number should you try to hit before shopping for a new vehicle?
   In order to secure an affordable auto loan, it is recommended that you improve your credit score to at least 680 before shopping for a new vehicle.
9. What are some auto maintenance recommendations for drivers who live in Alaska's often harsh environment?
   For drivers who live in extremely cold conditions, such as Alaska, regular vehicle maintenance should include:
   • Ensuring that antifreeze levels remain a consistent 50/50 mixture of antifreeze and water.
   • Ensuring the tires' tread depths do not fall below one-eighth of an inch.
   • Replacing windshield wipers and possibly purchasing special wipers that help prevent ice build-up.
   • Maintaining windshield wiper fluids.
   • Adding a bottle of de-icer to the fuel tank.
   • Checking the vehicle's oil regularly.
   • Purchasing an engine block heater.
10. What are key items that drivers should keep in their vehicle emergency kits if they intend to drive in cold weather?
    Important items that should be kept in a cold-weather emergency kit include:
    • An ice scraper and de-icer fluid
    • A road flare
    • Additional warm clothing and a blanket
    • A pair of warm hiking boots
    • A shovel
    • A first-aid kit
    • Battery jump leads