What to Consider Before an Auto Loan

Compare the full credit cost and your ability to absorb changes in income or vehicle expenses.

Key points

✓ Review the comparison rate, fees, term, balloon or residual amount and total repayments.

✓ Understand security over the vehicle, early repayment rules and what happens after missed payments.

✓ Do not let a monthly-payment target hide an unnecessarily long loan.

✓ Allow room for insurance, registration, maintenance and unexpected repairs.

Use this information with an inspection

General information cannot determine the condition or suitability of a particular vehicle. Verify the listing, documents and vehicle independently before committing money.