What is the retail installment sales contract?
At a dealership, the car purchase and the loan usually live in one contract. It lists the price, your down payment and trade-in, every fee and add-on, and the loan terms. Before you sign, match it line by line against the out-the-door price you agreed to. Anything you didn't agree to comes out.
What does the cost disclosure show?
Federal law requires the contract to show the loan's cost in a standard box: the APR, the finance charge (total interest and fees in dollars), the amount financed, and the total of payments. Compare the APR against the pre-approval you brought from your bank or credit union. If the dealer's number is higher, ask why.
What is the used-car Buyers Guide sticker?
Every used car at a dealer must have this sticker. If it says "As is — no dealer warranty," that means repairs are your problem the moment you drive off. Keep the sticker; it's part of your contract.
Which add-on contracts should you slow down on?
GAP coverage pays the difference between what you owe and what insurance pays if the car is totaled. Optional — and your own insurance company may sell it for less. Extended warranties and service contracts are optional too, and can repeat coverage you already have. If you're told any add-on is "required for the loan," ask them to show you where the contract says so.
Who handles the title and registration papers?
The dealer usually files these and you drive on temporary tags until the real ones come. Buying from a private person? The title transfer at the DMV is your job, usually with a deadline.
Questions people ask
Is GAP coverage required?
No, it's optional, and your own insurance company may sell it for less. If you're told any add-on is "required for the loan," ask them to show you where the contract says so.
What does "As is — no dealer warranty" mean?
It means repairs are your problem the moment you drive off. Every used car at a dealer must have the Buyers Guide sticker; keep it, because it's part of your contract.
Can you take the car home before the loan is final?
Don't. A "conditional" loan lets the dealer call next week and demand worse terms. Final loan, signed papers, then keys.