Questions You Should Ask Before Financing Your Used Car

It may be time for you to buy a new-to-you car. Most people are unable to save up a significant amount of money in order to buy it outright from one of their nearest used car dealers in Phoenix so they have to look into financing it. However, loans can be quite confusing and most people don’t even know what they should be asking as they compare loans. Here are some questions you should ask before financing a used car.

What Should I Ask Before Buying a Used Car

Can I see the truth in lending disclosure?  Even if it is confusing, you should see this document which outlines your loan.

How much am I really paying for the car?  There are many fees that need to be paid, along with the asking price. This can add several hundred dollars onto the bill. For this reason, make sure that you know exactly what you are paying.

What is the real interest rate?  It is more important to know the annual percentage rate (APR) than it is to know the original interest rate. This tells you how much you have to pay in interest per year of the loan. Once you know this, you can calculate exactly how much your car will really cost. When looking into a loan from Auto Action, our experts will walk you through this process so you don’t miss anything. That’s just one of the reasons why Auto Action is one of the most popular used car dealers in Phoenix.

Is there a penalty if I pay it off early?  Lenders have to allow you to pay off your car early. However, some have an extra penalty fee for doing so – which won’t make it worth trying to pay extra on the loan.

What else should you ask? Check out this recent blog we posted about all the inspection questions you should as your used car dealership.

Used Car Dealers in Phoenix You Can Rely On

Financing a car can be quite confusing, even with the truth in lending disclosure. For this reason, you need to make sure that you know how much you will really be paying for your car. Ask about any extra taxes and fees, as well as the APR. Always make sure that you can pay it off early without a penalty. So what are you waiting for? Stop searching for other used car dealers in Phoenix. The one you want is right here in front of you! For any questions about topics discussed in this post or to learn how you can sign up for a loan today, contact the experts at Auto Action today.