If I was approved for a different loan after signing an initial contract at the dealership, do I have to sign it?
I recently purchased a car, and the dealership told me that I would be paying $658 a month for 85 months and my interest would lower as the loan matures. However, they called me two days later to tell me the bank approved something different, and I would have to sign a new contract where my monthly payments would be higher but I would pay over a shorter time frame. Do I have to sign this contract, or would it be more convenient to stick to what they first told me?
- More likely to have an upside-down car loan, meaning you owe more than your car is worth
- Going to pay more in interest, especially if the interest rate is subject to change
- More likely to default on the loan because you’ll still be making monthly payments when the vehicle is older and requires more visits to the mechanic