Bad Credit Auto Loan Contracts

What you should know before signing the purchase contract for approved auto loans

Many times

Before signing the purchase contract for a bad credit auto loan you should know what to look for to avoid any surprises down the road.

We understand this because we’ve been involved with bad credit car sales for almost nineteen years at Auto Credit Express. In those years, we’ve managed to land approvals for hundreds of buyers for no credit auto loans.

We can prove to you that a tote the note dealer won’t help your credit score and we’ll counsel you on the horrible credit auto loans process to reduce your chances of repossession. Buyers outside our retail areas can also fill out our online auto loans application to find an appropriate dealer in their area.

But it’s important to not only find the right dealer, but also to understand the purchase contract.

Purchase contract

When you sign a finance contract, you are agreeing to the terms it contains. In most states there is no “cooling off” period when buying a car so you can’t change your mind later on. This means you should always double check the contract to make sure the information it contains is the same as the terms you agreed to, including:

•    Selling Price – check that the price of the vehicle is correct. This figure should include the selling price plus tax, title and license fees. The dealer may also charge a documentation fee to process the paperwork. These fees should be broken out in the purchase contract as to type and amount.
•    Amount Financed – this is the amount that you will be financing. It should be the sales price of the car less any cash down payment and/or trade equity.
•    Contract Term – this is the term of the finance contract in months and should reflect what you agreed to.
•    Interest Rate – this is the interest rate that you will be changed. Again, it should match the interest rate you were quoted.
•    Monthly Payment – this is the payment that you will be required to pay every month during the contract term. It should match the payment you agreed to.

If there is anything in the finance contract that you disagree with, you have the right to walk away before you sign it. If everything is correct and you sign the documents, the dealer is required to give you a copy of everything you signed before you leave. Make sure the dealer has signed all required documents, as well.

As we see it

You should pay as much attention to the sale and finance documents of a problem credit auto loan as you did in negotiating the deal. If you blindly sign anything put in front of you and miss something, you’re as much to blame as the dealer. Taking a few extra minutes could save you a lot of headache later on.

Here at Auto Credit Express we’ve helped thousands of people with poor credit buy cars and establish their car credit through a network of affiliate dealers that specialize in second chance auto loans.

So if you’re serious about getting your auto credit back on track, you can begin now by filling out our online car loans bad credit application.

Posted on July 27, 2011 by in Auto Loans, Bad Credit
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