Five Things to Ask Your Lender

When you get quotes on used car loans through our site, you will have several lenders from which to choose. Before you commit to a used car loan, make sure you ask these questions of your potential lender.

What is my actual interest rate? The best way to know what you're really paying in interest is to find out the APR (annual percentage rate). This is the amount of interest you will pay annually on the outstanding balance on used car loans. APR's are largely contingent on your credit score, so make sure you know your score before shopping for used car loans.
What penalties will I pay on my loan? Always know what penalties you might be assessed and how much they are when selecting used car loans. Ask about pre-payment penalties, or the fees you incur for paying the loan off early. Also ask about any other extra charges that are often hidden in the agreement.
Do you require credit insurance? Some lenders offer or demand that you pay for credit insurance. This covers their losses in the event that you default on the loan. Federal law does not require credit insurance, though state laws vary. It's rare that lenders require credit insurance, so be cautious if your lender demands it. Credit insurance should always be reflected in the APR, if you do have to pay it.
What is the exact amount of my monthly payments? Knowing the total cost of your used car loans is a good idea, but you also have to know the amount of your monthly payments to make the best decision. Ask your lender what the exact amount of your payments will be and make sure this fits into your budget. Don't dwell on the monthly payment figure, as the best representation of the cost of used car loans is contained in the APR.
What is the exact amount to be financed? Know exactly how much the used car loan is for and how much of a down payment you'll need to make. The amount you finance is the amount from which your interest will be calculated. Also consider making a larger down payment to reduce your interest expenses.

Check out our home page for more about us and what we do.

First Name:
Last Name:
E-Mail:
Will you have a co-signer?
YES NO