Shopping and comparing car loans and car loan rates should be a straightforward process but one that should be accomplished with a keen eye. Don’t simply glaze over the car loan rates and terms; understand all of the conditions attached to the car loan before signing on the dotted line.
Comparing auto finance options online makes it easy for the consumer to check the car loan rates and terms with several lenders quickly and easily. Once the car loan rate and car loan lender is established be sure to review the conditions with the lender, such as the required down payment, loan term and requirements for income and other supporting documents.
Once your signature is on the paperwork, the deal is done; before this time you want to make sure these are the car loan terms and the car loan rate you agreed to. This is your last chance to back out. One of the most important matters a car buyer and car loan applicant can attend to is to carefully review the car loan document before signing them. Once the loan contract is signed it is a legally binding contract for the borrower to repay according to the terms and rates established on the document.
There are a variety of laws that provide consumer protection for consumer loans that apply to car loan. The Federal Truth in Lending Act requires lenders to borrowers the terms of a loan including auto loans. The Act requires that, before you sign the car loan agreement, creditors give you written disclosure of important terms of the credit agreement such as APR, total finance charges, monthly car loan payment amount, car loan payment due dates, total amount being financed, length of the credit agreement and any charges for late payment. There are also a variety of federal and state consumer protection laws that prohibit car loan lenders from engaging in unfair and deceptive trade practices.
Be sure to ask questions to your lender, check the car loan figures and question anything that looks inflated or out of place. If you are pressured to sign the contract quickly, proceed with caution. By being better informed about auto loans you are more likely receive the car loan you want and will drive away pleased with added savings and a new car. The car loan lenders are here to serve you; however, you have a responsibility for protecting yourself.