How to Check the Financing on a Car

If you are about to purchase an automobile you may want to know about the financing, including the terms and conditions. The dealership may have their own financing department, and they will provide you with a rough idea of what your financing options are. The interest rate you receive will determine the amount of finance charges you pay over the term of the loan. You also pay more finance charges the longer your loan term is. If you dont want to get financing from the dealership, you can apply at your own bank. You will not know the interest rate until the lender looks at your credit report.

Instructions

1

Decide where you are going to apply for automobile financing. You can apply at the car dealership, a credit union or your own bank. Depending on the amount of the loan you may be able to finance your automobile with a credit card if the limit is large enough. Check several sources for financing.

2

Apply for financing. Submit an application to the institution of your choice. They will need your name, address, date of birth, Social Security number, several personal references and phone numbers for your home and place of employment. The lender will get a copy of your credit report. If you have a bad credit you could receive a higher interest rate, which increases your payments and the finance charges you pay.

3

Review the terms and conditions of your financing with the lender. Once your application is approved, the lender will provide you with the details including how many months you will have to pay, the amount of your monthly payments, interest rate and the total amount of the loan. For example, an auto loan in the amount of $20,000 for 72 months with an interest rate of six percent will have monthly payments in the amount of $331.46. The total amount of the payments will be $23,865.12 (72 x $331.46). This figure includes principal plus interest ($20,000 + $3,865.12).