The items that consumers with questionable credit should double check on a purchase contract before signing on the dotted line for a car loan
What we know
For people with poor credit it’s especially important that they thoroughly understand the auto loan documents they’re signing at the time of delivery.
At Auto Credit Express we feel that car buyers who have experienced problem credit ultimately have themselves to blame if they overlook something important when signing the auto loan documents.
But we also believe that these customers deserve a thorough explanation while being walked through the paperwork process and we should know because we’ve spent the past two decades matching consumers with bad credit looking for online auto loans to those dealers that can offer them their best opportunity for an approval.
The fact is we’re aware of what can happen when buyers aren’t paying attention during the delivery process. Usually the surprises that result from this aren’t the good kind. Here’s why:
Buying a car with bad credit tips
Car buyers need to understand that once they sign a finance contract they’re agreeing to its terms. Since there is no “cooling off” period in most states, if they change their minds later it won’t matter. Unless the dealer feels so inclined, they’ll be unable to return the vehicle – even if they come to the realization that they can’t afford it.
This means that for your own good you need to pay strict attention while you’re signing these documents to be sure the terms listed in the contract are the same as those you agreed to. These include:
• Selling Price – check that the amount is correct. It should include the agreed-to vehicle price plus tax, title and license fees. It also may include a dealer-charged documentation fee to process the paperwork (the ceiling on these fees is often mandated by state law, so be sure you know this before signing). Each fee should be broken out as to the type and amount.
• Amount Financed – this is the amount that you’ll be financing. It should equal the selling price less any cash down payment, rebates and/or trade equity.
• Contract Term –the length of the contract in months should reflect the same loan term you agreed to.
• Interest Rate – this is the interest rate you’ll be changed. It should match the interest rate you were quoted and agreed to.
• Monthly Payment – this is the amount you’ll be paying each month over the contract term. It should match the monthly payment amount that you agreed to.
If you disagree with any of the above items – or anything else contained in any of the finance documents for that matter – you have the right to walk away from the deal instead of signing them.
If there were other items that you think you agreed to that don’t appear on any of the paperwork now is the time to bring them up because unless it’s written down there’s no way it can be enforced later on.
Once the documents are signed, the dealer is required to give you a copy of each one. Before you leave, check to see that the dealer, finance manager or authorized representative of the dealership has also signed your copies – otherwise, they’re not valid.
The Bottom Line
Be sure to pay as much attention to the finance documents as you did to every other aspect of the sale. By signing something without first checking it over, the result will be that, should anything go wrong, you’ll be as much to blame as anyone. Taking a few extra minutes could save you a lot of trouble down the road.
We do have one more suggestion: if you’ve experienced car credit problems in the past you should know that at Auto Credit Express we match applicants to those franchised new car dealers that can give them their best chances for auto loan approvals.
So if you’re ready to reestablish your auto credit, you can begin now by filling out our online application.
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