When it comes time to sign your used auto loan, there are certain questions you’ll want to ask before you officially seal the deal. You want to have a perfect understanding of what you are signing so that you won’t have any unpleasant surprises later on.
Here are ten great questions to ask about your used auto loan, in no particular order:
What Is the Exact Out-the-Door Price of the Car?
What you originally saw on the car’s sale sticker is not always what you’ll end up paying when it’s all said and done. Be sure to ask for the exact out-the-door price, including all of the add-ons and extra charges. It could mean the difference between wanting the car or not.
What Is the Exact Amount I’ll Be Financing?
Once you know the actual price of the car, you’ll want to see how much of that you’ll be financing after they subtract your down payment. It is always nice to see how much your down payment will end up saving you in the long run.
How Much Will the Monthly Payment Be, Exactly?
If you are on a tight monthly budget, you’ll definitely want to ask how much your monthly payment will be, right down to the penny. Have them calculate all the taxes and fees and any extra charges so that you won’t be hindered when your first car payment comes along.
How Many Payments Will There Be?
Make sure you have a crystal clear understanding as to how many payments you’ll be making. If the dealer offered you a payment credit, or offered to cover your first few installments, be sure that this is reflected in the total number of payments you agree to make.
What Dealer-Installed Options Are There?
In addition to the options that a car includes straight from the factory, some dealerships will add options for the car in an effort to make it look more attractive. Make sure you get a rundown of which features are from the factory and which ones are from the dealer.
What Will Be the Total Amount Paid for the Car, Including Interest?
In addition to the actual price of the vehicle, an interest rate will also need to be calculated to determine the total amount that you’ll pay for the car. Ask for a payment schedule and look toward the bottom of the sheet to see how much all of your payments come to. Subtract the price of the car, and this will tell you how much you’ll end up paying in total interest.
How Much for the Administration Fee?
You might see an administration fee, and this can often be negotiated if it seems a bit on the high side. These fees are said to cover the different documentation and research that goes into clearing a car for sale.
How Much Is the Finance Charge?
Before you leave, you should know how much of a finance charge is being included in the cost of the car. If you are being charged an exorbitant amount, you should always ask to have it lowered.
Are There Any Penalties or Hidden Charges?
Don’t forget to ask if you will be penalized for paying off your car loan early. Paying your car loan off ahead of time to avoid paying excessive interest is always a smart idea, so make sure that you won’t have to pay a fee to do so. You should also ask if there are any hidden charges that you don’t know about.
Am I Getting the Best Deal You Can Offer Me?
One last question to ask the dealer is whether or not you are getting the best deal that they can offer you. Sometimes, this simple question can knock off a few extra hundred dollars or maybe even $1,000 if you haven’t asked yet. You should also know whether or not a dealer has a no-haggle philosophy or if they are just waiting for you to ask a question like this.
It’s Time to Ride!
At Ride Time, we love these kinds of questions, and we are more than happy to answer anything you think of during the sales process. Come see how relaxing it can be to buy a car, and enjoy the experience from start to finish.