Consumer Car Buying Advice Blog

Taking certain steps during the paperwork signing process can save bad credit car loan buyers a lot of headaches in the long run.

Car dealers

At Auto Credit Express, we believe that most car dealers are in business to make a fair profit. At the same time, we also believe that most consumers in the market for a car are willing to concede a fair profit to the dealer. But having been on both sides of the bargaining table, we are also willing to concede that a great deal of “stretching the truth” often occurs on both sides of the bargaining table.

We also feel that an educated consumer is our best customer and so, with that in mind, here are a number of tips to help make the document signing process at delivery go more smoothly.

Today we’ll be going over the “other paperwork” portion of the delivery, while tomorrow we’ll cover the actual loan documents as well as the purchase agreement, GAP insurance and CLAH (credit life, accident, health).

The paperwork

Taking delivery of a new car is a time of both excitement and apprehension – especially if you’re signing the loan documents at the same time – which is pretty much always the case if your new vehicle is being financed with a bad credit auto loan.

Your new car is sitting there and all you want to do is get in and drive it off the lot. There is a tendency for many customers, at this time, to simply sign any document placed in front of them, regardless of what it says – which is not a good idea.

Now is the time to sit back, relax and take a deep breath before you begin signing any documents.

Other paperwork

In many cases, the finance manager will have you sign documents, other than the loan contract, first. This gets you into the habit of signing your name, which makes signing the big one (the loan contract) that much easier once you get to it.

If that’s the way they want to do it, it’s perfectly all right. This also gives you the opportunity to practice reading a document before you sign it. It may drive the business manager crazy, but so what? Here are some tips:

Emissions statement (new and possibly used) – Fortunately there is nothing to do on this statement but sign it.

Odometer mileage statement (new and used) – be sure the mileage on this statement matches the mileage of the car. You should also make sure that the VIN number (vehicle identification number) matches all the other documents.

New Car Checklist (new) – This is sometimes called an inspection form or PDI form. Before signing any checklist, be sure to inspect the new car thoroughly for cleanliness and scratches. Check the lights, horn, wipers, radio, heater and air conditioner as well as any other options to make sure they are working properly.

Buyers Guide (used) – This is also called an “As-Is” form. Before signing, verify the mileage, VIN and any additional information on this sheet. If you have been promised any additional work, be sure to get this in writing either on this slip or on another document (such as a “We Owe” form signed by the dealer.

“We Owe” form (new and used) – this form will list any work that was promised but has not yet been performed. Be sure it contains everything the dealer has not yet done to the car (such as pin stripes, wheels or a different radio).

License application (new and used) – The VIN and mileage information should match your new car.

Title application (new)/Vehicle title (used) – Be sure that both documents accurately reflect the VIN number and mileage of the car you are purchasing. It it’s a used vehicle, be sure the title does not state “salvage” or “rebuilt” and be sure the “actual mileage” box is checked.

Service contract – If you are purchasing an extended warranty (new car) or service contract (used car) be sure to verify that all the information is correct including the mileage, cost, deductible amounts (if any), and systems covered – as well as the information pertaining to where the vehicle can be serviced in the event you need to use it.

Auto Credit Express

Check with your friends, co-workers and the Better Business Bureau before visiting a dealer. Know their reputation for fairness in dealing with customers.

If you have bad credit, you should know that you probably have more options than you realize. Before going to a buy here pay here lot, remember that they don’t report to the credit bureaus and getting a car there won’t help repair your credit. At Auto Credit Express, we have helped thousands of customers, with good credit and bad credit, buy a new or low mileage used vehicle that is not only reliable, but will help them reestablish good credit.

Tags: better business bureau, car loan, car loan quote, credit monitoring, equal credit opportunity act, gm employee discount, honda, kelley blue book, we finance everyone

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