Before taking out a car loan

Being an important part of your credit history, and having a big affect on your financial future, car finance & loans are something to take very seriously before commiting. You should be prepared with a list of questions to ask your lender, so you are one hundred percent informed before you agree to anything.

The most important questions being about interest rates. Asking what is the base interest rate and APR is a good start, as they can fluccuate over the term of the loan. It is also a good idea to ask what is the best rate they can offer, and if the rates will be locked by the lender.

Asking if there is a minimum down payment should also be on your list, because on some loans the borrower makes the down payment, and the larger that payment is, the smaller your monthly payments should be. Which leads to asking what the monthly payment will be, and if there is a penalty for repayment, in the event you pay off your loan early.

Other questions include asking what documentation you will need for the process, and how long the overally approval process will take, which will determine how soon you can use your funds.