Having an auto loan financed can get confusing. There is paperwork to sign with a lot of small print, and if you don’t have all the facts, you can get into a loan that you’ll regret later on. Here are three things to always ask your auto loan lender before you sign on the dotted line.

Review All Details

Sometimes, you’re in a hurry and simply want to finish up without reading the small print. This can be a huge mistake when it comes to any type of loan, auto loans included. For instance, some credit unions will attach a disclaimer that if you have an additional loan on another vehicle with them and you fall behind on one payment, the other vehicle can be repossessed as well.

Make sure you find out if there are penalties if you pay the loan off early and always be sure you understand all of the terms: the payments, the late fees, the interest rate, the length of the loan and anything else that applies. Find out if credit insurance comes with the loan as well. For an additional charge, this insurance protects you against loan default under stated circumstances, such as if you lose your job. Decline if you don’t want it so you’re not stuck with an extra fee for a service you don’t want.

Raise a Deposit

If you need to sell an older car, sites such as carsforcash.com can help turn the car into cash which can be used as a deposit. This can widen your choice of financing options while reducing your long term capital borrowing and monthly payments.

Find Out the APR

The annual percentage rate represents all the lending fees you will pay on an annual basis and not just the interest rate alone, according to the Consumer Financial Protection Bureau. An APR includes other costs associated with borrowing, such as application fees, so you understand what your loan is truly costing you.

You may find that different lenders offer you varying rates, and it’s in your best interest to go with a lower rate if possible. This will most likely depend on your credit score, but you can still shop around and possibly find a lower APR depending on who you talk to.

Make Sure That the Deal is Set in Stone

In the past, you were pretty sure that if you signed the paperwork, the vehicle was yours. Times have changed and sometimes you may think that you have a vehicle only to be told that financing did not work out or fell through. Then you hear the rates and terms you originally agreed to have gone up or changed. Once you get to the area where you are signing the paperwork or are told that you can get the vehicle, make sure that the deal is set. Let the lender know you will not purchase the vehicle if the terms change in any way, as this can be a sign of dishonest lending practices.

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