- You made an offer on the car you wanted to buy, and the dealership accepted your offer. It's time to move to the finance office to sign the final papers. Beware of that smiling finance person behind the desk, as his or her job is to squeeze more profit out of you.
Don't sign your contract quickly, and hurry out the door, as the finance office may ignore the agreement you made with their office, and put a higher loan rate, and extended time period to pay into your contract, which results in more interest charges.
Once you have signed your contract, and stated that you've read and understand the terms, you are stuck paying the higher rate, so take your time and read the contract thoroughly.
If you're not happy with the loan terms that the dealership is offering, negotiate directly with individual lenders, and you may find lower rates that you can afford. - When you purchase your new car, you may be told that you should buy credit insurance, to pay off your loan in case you die, or if you can't work due to a disability. You may already have credit insurance through your own insurance company, so check your policies before you buy credit insurance from the dealership.
Federal law does not require you to buy credit insurance, and if it's required to complete your auto financing, the cost must be included in your annual percentage rate.
Check with the Insurance Commissioner or Consumer Protection Agency in your state to see if there are any requirements concerning credit insurance. - You're quoted a high monthly payment, but since it includes a car alarm, fabric protection for your seats and carpet, and paint sealant to protect your car finish, you accept the amount.
What the dealership isn't telling you is that these accessories are optional, and that you are paying extra for them.
Ask the dealership what is included in your monthly payment, and say no to any extra accessories that you don't need.
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