The easiest way to get information is to phone the creditor and ask for the loan arranger or car loan department. The loan officer will ask a few basic questions:
- How much money is to be borrowed?
- How long?
- What year is the car?
- What is the selling price?
Potential borrowers may be asked questions about employment, income, credit cards and debts. After you have answered the questions, request the following information from the loan officer:
- Monthly payment
- Restrictions on the loan
- Additional fees
- Finance charge
The total credit costs depend primarily on three factors: the APR, the amount borrowed and the length of the repayment period. So if you are considering financing through a dealer, make sure you get separate quotes for the car and for the financing. Otherwise, you will not be able to compare the credit costs and terms accurately with other credit sources.
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