Four Questions to Ask Your Auto Loan Lender
1. What’s the actual rate?
Review your credit report before you talk to a lender; make sure there are no discrepancies on your report. If there are mistakes or discrepancies you will want to fix them first. Mistakes or discrepancies can make your rate higher. When talking to a lender understand what fees that will be included in the APR (Annual Percentage Rate). These fees vary from lender to lender so don’t be afraid to compare or shop around for a lender. These fees are the actual percentage rate plus fees associated with the loan.
2. Can you provide me with all the auto loan details?
Details, details, details… Remember You’re the Boss, so make sure you know all the details. Ask questions about your loan and make sure you understand your loan before you sign. What’s the interest rate? What happens if you refinance are there extra charges or penalties? What if you pay the loan off early is there penalty? And remember the lenders profit is also in details. Make sure all your questions are answered before you sign.
3. Can you guarantee that the deal is set?
Don’t let the lenders play games with you. Make sure that the deal is set, unscrupulous lenders will say it is set then call back and tell you the financing fell through and offer you a deal at a higher rate. You’re the boss so tell them if they can’t set the deal and meet the agreed terms that you will not be back to buy the car.
4. Does the car loan include credit insurance?
Credit insurance do you needs it? Before you decide talk to your insurance agent and see if this is of any value for you. If so the lender will add it to the ARP. If not make sure it has been removed before you sign.
Buying a car can be stressful, but take your time and ask lots of questions. After all this is a big purchase with payment over a length of the loan. Make sure you understand and agree with all the terms. You will be much happier with your new car.
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