Car finance questions you must ask

Aug 17 2010 It has been observed that people spend a lot of time thinking and choosing the model of car they want, but rarely spend the same effort in discussing car finance terms with their friends or the dealer and prefer to leave it to him to come out with an offer they think is suitable for them.
It is natural that they end up paying far more than they should have and that is why it is important to ask the right questions such as:
• The interest rate that is being charged
• The penalties or fines that would be levied for foreclosure or for late payment
• Can the car loan be approved quickly?
• What is the significance of the credit life insurance that is being recommended?
The interest rate is an important element and here the question should include the methodology of calculation of the APR by the dealer. This way you will get to know the various components the dealer is including into your loan amount and can discuss accordingly with the dealer.
Knowing about the levies and fines beforehand will enable you to plan your monthly repayment well.

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