Are there any terms and conditions I should know about before applying for a car loan?

Answered by Car Loans Expert Eric on December 23, 2020

This will be my first time applying for auto financing and I'm not sure what to expect. Which terms and conditions should I be aware of?

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Eric

Car Loans Expert

Perhaps the top condition you should know about before applying for a car loan is qualification for a company’s rates. In some instances, lenders may advertise a particular rate — but what they don’t tell you is that you have to meet a certain level of creditworthiness to secure that rate or any type of financing. In addition, some lenders may also charge an “origination fee,” which covers the costs of underwriting, processing, and administrative tasks. These rates are typically around one percent to two percent of the loan. Just remember, you can always negotiate these fees.


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