Auto finance guide
Questions to Ask Before Signing Car Financing in Canada
A pre-approval is only the start. Before signing, review the full cost of credit and every product included in the agreement.
What is the total cost of credit?
Ask for the total amount paid over the full term, not just the monthly payment.
What is the interest rate and term?
A longer term can lower the payment while increasing total interest. Compare both numbers.
Are there added products?
Warranty, insurance, protection packages, and accessories may change the total financed amount.
Is there a prepayment option?
Ask whether you can pay extra or pay the loan off early without penalty.
Who is the lender?
Know which lender or dealer partner is providing the financing and who services the loan after signing.