If something sounds too good to be true then it probably is, especially when it comes to auto loans. Whether you get your auto loan through a financing officer directly at a dealership or through an independent financial institution, it will be a binding contract once signed. As with any contract, you need to take the time to read the fine print on your auto loan so you understand all the terms.
What you find in the fine print of an auto loan will depend on what type of deal is being promoted or advertised. Federal regulations require an honest and upfront process of disclosure for auto loan contracts. If you are considering a normal auto loan not based on any promotions or advertisements, it’s still important that you review the fine print of the contract for all the details.
When reading the fine print of auto loan terms at a dealership, you must pay attention to the small details that can cause big problems. Dealer auto loans may look great on paper, but extended loan periods, huge down payments, balloon payments and administrative fees may be hidden in the fine print. Don’t ever succumb to the pressure of signing a document before reading all the details. You can also avoid bait-and-switch scams and other tricks that can cause you to pay more for the life of your loan.