Car Finance Quote Breakdown

Before you sign the papers for your new auto, you need to know how to breakdown a car finance quote so that you don't end paying more money than you should. This article will show you how dealerships come up with car finance quotes.

When you're breaking down the quote, you will put every single thing the car dealer is charging you for on the list. Start with the actual car price then add in the title fee, the registration and plate fees, the sale taxes, and any processing fees you are charged by the loan company. You also need to add in the cost of starting the insurance and the price of the monthly or yearly insurance. These are all reasonable costs. Now add these things up for the total of what the car will cost.

But, before you think you're ready to go, be careful of the "other things" the dealer might try and charge you. If you don't, you could wind up paying thousands of dollars more. Often, dealerships will add in things like rust proofing for $800, extended warranties for $2000, fabric protector for $300, car alarms, etc. You might want some of these, but you can usually get them elsewhere for a lot cheaper. The actual dealer cost for these things can be as much as 80% less then what they'll charge.

The dealership may try and tell you that you also have to buy credit life insurance, especially if you have bad credit. That's another thing you don't have to add into your quote. In fact, it's illegal for your dealer to tell you that you have to buy it. You don't and it's worthless.

Don't dismiss the importance of charting out the car price quote. You may find discrepancies in the dealer's quote. If you add up all the numbers and they are lower than the dealer's quote, don't be afraid to point it out and demand that it be fixed. Don't pay more than you should for your new car.