Signing a car purchase agreement without fully understanding it is one of the most expensive mistakes buyers make. This guide explains every line item so you know exactly what you're signing.
This is the negotiated price of the vehicle before any taxes, fees, or trade-in credits. Verify this matches what you agreed to. This is the most important number on the contract.
If you're trading in a vehicle, this section shows your trade-in allowance (what the dealer is giving you) and any existing loan payoff amount. If your payoff exceeds the trade-in value, the negative equity is added to your new loan — a common source of trouble.
Cash paid upfront. More down payment reduces your loan amount and monthly payment, but verify it matches your agreement.
In a lease, this is the starting value of the vehicle after any down payment (cap cost reduction). The lower the cap cost, the lower your monthly payment. Negotiate this number just like a purchase price.
The total cost of borrowing money over the loan term. Always know your APR and calculate the total interest you'll pay. Compare it to your pre-approved rate from your bank.
This section lists doc fees, registration, title fees, and any add-ons. Review every line. If you see fees you didn't agree to or add-ons you declined, flag them immediately before signing.
This is the final, all-in number you're paying. Add up: vehicle price + taxes + fees + add-ons − trade-in − down payment. This should match what was quoted during negotiation. If it doesn't, ask why.
Verify the payment amount and number of months match your agreement. Be wary of extended loan terms (72 or 84 months) that lower payments but dramatically increase total cost.
We review every number on your deal before you sign — so you never get surprised at the dealership.
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