Buying a New Car? Questions for the Finance Manager

If you find yourself in the market for a new car, it won’t be long before you’re sitting face to face with the finance manager (unless you’re paying with cash, of course).

Reaching this point means you have found your next vehicle and are ready to finalize the purchase.

As you make your way through the process, here are some of the more important questions to ask:

• What is the total amount financed? While the monthly payment is important, you want to know exactly how much you’ll pay over the life of the loan. This could change if you pay extra, but you want to know where you’re starting.
• What is the interest rate? An important question for many reasons, you need to know what type of rate the finance manager is able to secure. If you aren’t satisfied, you may want to shop around on your own.
• What is the name of the lender? If you decide to go with the financing the dealer secures, make sure you learn more about the lender.
• Is there a prepayment penalty? Although you may not have any intention of doing so, there could come a time when you pay more than the monthly payment amount. You want to make sure there is no prepayment penalty.
• What impact will a down payment have on your monthly payment? This may or may not be something you want to do, but it’s nice to know how the numbers will be impacted based on how much you put down.

These are far from the only questions to ask when buying a new car, but they are definitely among the most important.

The finance manager should be available to answer these questions, among others, as a means of making the transaction as simple as possible.

When was the last time you purchased a vehicle? Did you ask these questions and/or any others? Share your feedback in the comment section below.