Before applying
- Check your credit reports and dispute obvious errors.
- Set a maximum out-the-door price, not only a monthly payment.
- Estimate insurance before choosing the car.
- Decide how much cash you can put down without draining reserves.
- Gather income, housing, employment, identity, and residence information.
- Know the payoff amount if you are trading in a vehicle with a loan.
Questions to ask each lender
- Is this pre-qualification or pre-approval?
- Will checking my rate create a hard credit inquiry?
- What APR, term, and maximum amount are approved?
- Are there application, funding, origination, or prepayment fees?
- Are there limits on vehicle age, mileage, title type, dealer, or private-party purchases?
- When does this offer expire?
At the dealer
- Ask for the out-the-door price in writing before discussing financing.
- Compare the dealer offer against your pre-approval using APR, term, amount financed, and total cost.
- Ask whether a low APR replaces a rebate or other discount.
- Decline add-ons you did not independently price or choose.
- Do not sign if the financing is not final and you are uncomfortable with a later callback.
- Leave with a complete copy of every signed document.
After signing
Set up automatic payments only after you confirm the lender, account number, first due date, payment amount, and payoff instructions. Keep a reminder for the first two payments so you can catch setup problems early.
If you later receive new paperwork or a request to return to the dealer because financing changed, compare every new term against the contract you signed before agreeing.