How Much Will I Pay?
First, you need to know how much you're going to pay for your vehicle in total, not just what you are going to pay on a monthly basis. Many people take out loans thinking that they're saving money by having a low monthly payment.
The combination of the interest rate, servicing fees, and the length of the repayment term can actually cause them to spend far more than they assume. Take all those factors into account and ask your auto loan lender for the total price of the loan.
How Do I Pay?
Next, you'll want to find out your options for paying. Find out when your payment is going to be due and how you're going to be expected to pay. Learn whether or not the lender takes online payments and what other types of payment they might take or prefer.
This is also a good time to figure out what happens if you make a payment early or if you make payments more than once a month.
What Happens in an Emergency?
You also need to know what happens in an emergency. Who do you contact if you are unable to make a payment? What happens if your car is totaled? What do you need to do if something radically changes your income? All of these are questions that you need to ask before you sign. That way, you’ll be prepared for any worst-case scenarios that might come up.
How Do I Access My Information?
Finally, figure out how you access your information. Some states might need you to present a letter from the lienholder to register your car, for example, while others might just need the contact information from the lender.
You may also want to be able to access your payoff information to determine how to pay off your car more quickly. Most lenders will be able to direct you to a website that will give you all this information and more.
Don't be afraid to ask your lender questions. The more information you get now, the better prepared you will be for your loan. If you can do your research before you buy, you'll be able to get the car that's right for you at a price you can actually afford.
