Questions to Ask the Auto Finance Lender
Someone who needs an auto finance loan from a lender needs to ask some questions in order to get the best value for their money. Therefore, they must do in-depth research and check to see if it fits their budget plans.
Ask about the actual annual percentage rate because this is the most important factor to be considered for a large purchase. You should discuss with your lender the annual percentage rate (APR) that they are charging. Also, ask them how they calculate and figure their APR, because most of them have different methods.
When talking about the APR, they should involve all the charges associated with the auto finance loans. In most instances, the interest rates depend on your credit history. If your credit history is below average, then they can impose higher rates on the auto loan and the vice versa for the case of excellent credit history. Therefore, it is advisable that you contact the credit bureau to confirm the status of your report before going to the lender. If you find that there is any error, then you should focus in correcting it before heading to the lender.
Don’t forget to ask about an additional insurance credit. Some auto dealers impose extra expenses by selling to you unnecessary insurance policies to make the loan attractive. Ask about any extra amount on top of your auto finance loan before committing yourself to the loan. If there is any policy, compare it with others.
Another important question to ask the lender is about the offer they are giving out. They should provide full information concerning their auto finance loan. There are some lenders who impose penalties on loan refinancing or early repayment. However, remember that good lenders do not charge any fee for cases like this. Look into the terms and conditions of the auto loans and don’t shy away from seeking clarification of any terminology you don’t understand correctly.
Remember to ask for the final approval for the auto finance package before you leave. Some lenders may tell you the deal is well done, but then call you later that they failed. They will then give you another lender to do the deal at higher interest rates, and additional charges. If any lender tells you the deals are set, you should ask for a guarantee that they’ll not change the terms in future.