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Before Visiting the Dealership
- Evaluate your financial situation and determine how much you can afford to pay each month. A longer-term finance contract may mean smaller monthly payments than a shorter-term finance contract (if all other terms are the same) - but will result in more money paid over time on your contract.
- Determine the down payment of the vehicle you can afford.
- Understand the value and cost of optional credit insurance if you agree to purchase.
- Know the difference between buying and leasing a vehicle
- Be aware that your credit history may affect the finance rate you are able to negotiate. Generally, you'll be able to get a lower rate if you've paid your monthly credit obligations on time.
When Visiting the Dealership
- Stay within the payment that you can afford.
- Consider carefully whether the transaction is best for your budget and transportation needs.
- Understand the value and cost of optional products such as extended service contract, credit insurance, or guaranteed auto protection (GAP), if you agree to purchase. If you don't want these products, don't sign for them.
- Read the contract carefully before you sign. You are obligated once you have signed a contract.
After Completing the Vehicle Purchase
- Be aware that if you financed the vehicle, the assignee (bank, finance company, or credit union that purchases the contract) holds a lien on the vehicles title (and in some cases, the actual title) until you have paid the contract in full.
- Make your payments on time. Late or missed payments incur late fees, appear on your credit report and impact your ability to get credit in the future.
If You Encounter Financial Difficulty
- Talk to your creditors if you experience difficulties making your monthly payments. Explain your situation and the reason your payment will be late. Work out a repayment schedule with your creditors, communication is the key!
- Know your obligations. A creditor or assignee may take the vehicle in full satisfaction of the credit agreement or may sell the vehicle and apply the proceeds from the sale to the outstanding balance on the credit agreement. This second option is more common. If the vehicle is sold for less than what is owed, you will be responsible for the difference.
- Be aware that repossession can occur if you fail to make timely payments. It does not relieve you of your obligation to pay for the vehicle. The law in some states allows the creditor or assignee to repossess your vehicle without going to court.
Save yourself time and take advantage of this convenient service offered by Car Today to apply for credit for your purchase right here online!
Click Here to Apply Online!
We encourage you to educate yourself on vehicle financing by looking at the sections that we have offered below for a through understanding of the financing process works and your options and responsibilities. Click on each section for more information.
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