Checking the Purchase Contract for Bad Credit Auto Loans

What to look for before signing the purchase contract for a bad credit car

What to look for

If you have poor credit it’s more important than ever to know what to look for when signing the loan documents for a problem credit auto loan.

We should know because we’ve been doing bad credit car sales for nearly twenty years here at Auto Credit Express.

A web site we built covers the horrible credit auto loans process so applicants can sidestep tote the note dealers as well as understand the issues that can lead to repossession.

One of those issues that need to be understood is the finance (or purchase) contract.

The purchase contract

When you sign a finance contract, you agree to the terms it contains. In most states there is no “cooling off” period with a car purchase so you won’t be able to change your mind later on. This means you need to pay attention to be sure the information the contract contains is the same as the terms you agreed to, including:

•    Selling Price – check to see 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 the 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, rebates and/or trade equity.
•    Contract Term – this is the length of the finance contract in months and should reflect what you agreed to.
•    Interest Rate – this is the interest rate 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 each month during the length of the contract. 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.

The Bottom Line

You should pay as much attention to the sale and finance documents of no credit auto loans as you did in negotiating the deal. If you sign anything put in front of you without first checking it 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.

We want you to know this because at Auto Credit Express we help people with bad credit find a dealer for their best chance at getting no credit auto loans.

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

Posted on October 31, 2011 by in Auto Loans, Bad Credit
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