Duration 7:55
Auto Finance Agreements can be an intimidating document when you get in front of
a finance manager at a car dealership. There is so much terminology written by lawyers
that it’s hard to figure out what all the “mumbo jumbo” is all about.

Annual Percentage Rate, Finance Charge, Amount Financed, Total of Payments, and Total Sale Price are the main ingredients in an auto finance contract. Those terms are more commonly known as the “Fed Box.” 

The “Fed Box” fully discloses your interest rate, the total finance charges for the loan, the amount financed the total of payments and the total sale price. Not knowing these figures or what they represent can cost you a small fortune with the finance manager getting his own way. 

Once you know what everything is and what it represents, you will be in the driver’s seat the next time you make that big purchase and have to finance with the dealer.

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