Consumer Car Buying Advice Blog

By taking certain steps in the delivery process you can prevent future headaches. Today we will discuss the two most important forms you sign at delivery.

More about car dealers

Just like just about everything else out there, those of us here at Auto Credit Express admit that there are both good car dealers and bad car dealers out there. We also genuinely feel that, as part of the bad credit auto loan process, an educated consumer is our best customer.

Today, we’ll be covering the rest of the documents that you’ll sign when taking delivery of a new vehicle that includes the loan documents, purchase agreement and GAP and CLAH (credit life, accident, health) agreements (which are usually included in both the purchase agreement and the finance contract).

The process

As we stated yesterday, picking up a new car is both exciting and more than a little daunting, especially if you’re also signing loan documents – which with bad credit auto loans, is usually the case since most of these lenders only do indirect financing through car dealers.

But instead of racing through documents and signing them as quickly as possible, you should be taking your time to read through most of them so that unexpected surprises don’t pop up in the months and years to come.

So sit back, relax, and take a deep breath as we guide you through the rest of the document signing process.

The final paperwork

Yesterday, we stated that in many cases, the finance manager will have you sign documents in order of their importance, saving the biggest (the finance contract) for last. They do this to get 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.

We find this method to be perfect for quite different reasons, as it also gives you the opportunity to practice thoroughly going over a document before you sign it. This may drive some finance manages up the wall, but it is, after all, your money that you’re spending. Here are some tips:

Vehicle Purchase Agreement – Most vehicle purchase agreements combine all the relevant deal information along with the legal language. This means that the front of the form will contain all the pertinent data, while the back of the form will deal with the standard legalese that points out what your signature on the front really means. Be sure all sections are filled out completely and accurately including:

Vehicle information – correct VIN, make model, body style, odometer reading and color.
Trade-in information – the same information (if there is a trade) should be correct in this section.
Purchaser information – be sure everything is correct in this section including name, address, phone and license numbers as well as insurance company information.
Pricing – all information on the vehicle price, doc (documentation) fee, sales tax, license, title and miscellaneous fees, labor and other non-taxable charges should add up to the correct total delivered price. Below this price may be service contract and GAP insurance charges, plus any taxes on these items. The cash due on delivery should be listed, then the trade-in allowance, then the lien amount. Below this is the total down payment and then, below this, the balance owed on the vehicle – which is also the same as the financed amount that will appear on the finance contract. Below this line are the finance charges on the contract, then the insurance charges with the total amount of the agreement listed on the bottom line.

At this point, if you have any questions regarding the finance or insurance charges, you may want to hold off signing this agreement until you’ve checked out the actual finance contract. All the figures on the purchase agreement should correspond with the price that you agreed to at the time of negotiations. If it doesn’t, then ask for an explanation. Remember, once this document is signed by both you and an authorized representative of the dealer, it’s a binding agreement.

Finance contract – the finance contract should be completely filled out. Never sign a blank finance contract. The contract will contain the following information:

1. total vehicle price
2. total down payment
3. amount financed (the difference between 1 and 2)
4. the cost of insurance or other adds
5. official fees
6. principal balance
7. the cost of credit
8. the exact amount of each payment
9. the total number of payments
10. the total cost of the vehicle, including interest expenses

Unless you’ve agreed to it, never sign a contract that states, “subject to later approval of financing from a third party,” as this clause may very well trigger a change in the terms of the finance agreement.

You should also check on whether or not there are any pre-payment penalties if the loan is paid off earlier than the date on the contract.

Auto Credit Express

Once more, we would like to reiterate that you should check with 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 also 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 you 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 their car credit and raise their FICO scores. For more information, visit our web site at: www.autocreditexpress.com.

Tags: better business bureau, car loan quote, cell phone, chrysler employee discount, gm, gm employee discount, honda, New Cars, we finance everyone

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