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Questions to Ask About Low Interest Loans
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Tags: Low Interest Loans, Loans, Car Buying
A call or visit to a dealer should help clarify details about low interest loans. Consider asking these questions:
| | Will you be charged a higher price for the car to qualify for the low-rate financing? Would the price be lower if you paid cash, or supplied your own financing from your bank or credit union? |
| | Does the financing require a larger-than-usual down payment? Perhaps 25 or 30 percent? |
| | Are there limits on the length of the loan? Are you required to repay the loan in a condensed period of time, say 24 or 36 months? |
| | Is there a significant balloon payment —possibly several thousand dollars — due at the end of the loan? |
| | Do you have to buy special or extra merchandise or services such as rustproofing, an extended warranty, or a service contract to qualify for a low-interest loan? |
| | Is the financing available for a limited time only? Some merchants limit special deals to a few days or require that you take delivery by a certain date. |
| | Does the low rate apply to all cars in stock or only to certain models? |
| | Are you required to give the dealer the manufacturer’s rebate to qualify for financing? |
Lister:
Angie
Source:
FTC
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