Auto Buying & Lending: A Partner Toolkit

1. Have you looked at your Spending & Savings Plan to determine what you can comfortably afford, not just the payment, but for the full cost of owning the vehicle? 
2. Have you been pre-approved for financing or compared loan options before going to the dealership?
3. What is the APR, loan terms, finance charges, amount financed, and total amount you’ll pay over the life of the loan?
4. Have you reviewed the buyer’s order and checked that the numbers and terms match what you expected?
5. Do you understand each document, fee, add-on, and term you’re agreeing to and do you feel comfortable moving forward?

• Safety Recalls:  National Highway Traffic Safety Administration
• Vehicle History/Title Information: Research Vehicle History | VehicleHistory
• Vehicle Pricing: Kelley Blue Book | New and Used Car Price Values, Expert Car Reviews OR Instant Used Car Value And Trade In Value | Edmunds
• CARS Foundation tips for how to get a good deal on a safe, reliable used car from another consumer

1. Encourage pre-approval
   Give consumers a point of comparison before they enter the dealership.
   A pre-approval can help consumers understand what they qualify for and provide a benchmark when evaluating dealership financing.
2. Focus on total cost, not just the payment
   A lower monthly payment doesn’t necessarily mean a lower cost loan.
   Encourage buyers to compare APR, loan terms, finances charges, amount financed, and total number of payments.
3. Encourage consumers to slow down
   A car purchase doesn’t have to happen according to someone else’s timeline.
   Direct buyers to review and understand loan documents, ask questions to make sure they understand what they’re agreeing to before signing.

Encourage buyers to slow down and ask questions if they encounter:

• Pressure to sign immediately
• A focused monthly payment rather than the total cost
• Pressure to use dealership financing or pricing contingent upon financing
• Unexpected fees or add-ons
• Documents that don’t match what was discussed
• Changes to financing after the consumer believed the deal was complete
• A loan term that significantly extends the repayment period to lower the monthly payment

Reinforce: If something doesn’t look or feel right, it’s ok to pause, ask questions and seek another opinion before signing