Auto & Car Loans: A Checklist for Comparing Options
Compare the car price and the financing separately.Start with the amount you will actually financeRequest an itemized out-the-door price, then subtract the down payment and any positive trade-in equity. Identify taxes, dealer fees and optional products separately. A service contract added to the balance costs its purchase price plus the interest charged to finance it.If the trade-in is worth less than the existing loan payoff, the difference is negative equity. Rolling that gap into a new loan increases the new …
