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Sometimes,
dealers offer very low financing rates for specific cars or
models, but may not be willing to negotiate on the price of
these cars. To qualify for the special rates, you may be
required to make a large down payment. With these
conditions, you may find that it’s sometimes more
affordable to pay higher financing charges on a car that is
lower in price or to buy a car that requires a smaller down
payment.
Before
you sign a contract to purchase or finance the car, consider
the terms of the financing and evaluate whether it is
affordable. Before you drive off the lot, be sure to have a
copy of the contract that both you and the dealer have
signed and be sure that all blanks are filled in.
Some
dealers and lenders may ask you to buy credit insurance to
pay off your loan if you should die or become disabled.
Before you buy credit insurance, consider the cost, and
whether it’s worthwhile. Check your existing policies to
avoid duplicating benefits. Credit insurance is not required
by federal law. If your dealer requires you to buy credit
insurance for car financing, it must be included in the cost
of credit. That is, it must be reflected in the APR. Your
state Attorney General also may have requirements about
credit insurance. Check with your state Insurance
Commissioner or state consumer protection agency.
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