The final step in an auto loan is when you sign the purchase contract. In general, there is no cooling off period, so you only have one opportunity to make sure everything is correct. Once you sign, you will be locked into the terms.
There are several things that you must double check before putting pen to paper:
- Selling Price. Make sure the price matches the agreed upon dollar amount. The number should include the selling price plus tax, title, license fees, and any documentation fees.
- Amount Financed. Ensure that it is the sales price of the car less any cash down payment, rebates or trade equity.
- Contract Term. This should be the agreed upon loan term.
- Interest Rate. Verify that this is the same interest rate you initially were quoted.
- Monthly Payment. These payments must be as agreed upon.
If anything in the purchase contract does not agree with what you were told prior to the document being drawn up, do not sign it. Walk away from this bad credit auto loan, no matter how good the deal seems, and look for a more reputable dealer.