Start with the agreed vehicle price
Confirm that the selling price matches the advertised or negotiated figure and that rebates or discounts are shown separately. Ask whether any discount depends on financing through a particular lender, owning a specific vehicle, military or first-responder status, recent graduation, or another condition.
- Vehicle selling price
- Rebates and dealer discounts
- Destination or delivery charges
- Previously installed accessories
Separate the trade value from the payoff
Your trade allowance is what the dealer is giving you for the vehicle. Your payoff is what you still owe the lender. The difference determines whether you have positive equity or negative equity. Do not evaluate the trade only by the allowance—compare it with independent market information and verify the payoff amount and date.
- Trade allowance
- Loan payoff
- Positive or negative equity
- Any tax credit provided by state law
Identify every fee and add-on
Documentation, electronic filing, registration, title, taxes, transport, protection products, service contracts, GAP, accessories, and other items should be visible and understandable. Some may be required by law or lender policy; others may be optional. Ask for the purpose, price, and cancellation terms of every item you did not specifically request.
Reconcile the amount financed
The amount financed should make sense when you combine the selling price, taxes, fees, add-ons, trade equity, cash down, and any payoff. If the number surprises you, stop and reconcile it before signing. A difference of several thousand dollars can be hidden by extending the term or focusing attention on payment alone.
Review the financing as a separate purchase
Confirm the annual percentage rate, term, amount financed, finance charge, total of payments, and whether the contract includes optional products. Compare the loan with at least one outside approval when practical. A lower payment created by a longer term is not automatically a less expensive deal.