What should I check before signing a car deal?
Written by RD Matharu, Founder of ASK RD · Published
Before you sign, check seven things: the selling price of the vehicle, every fee, every add-on product, the taxes, the trade allowance and payoff, the amount financed, and the APR, term and payment. Each of those should appear in writing on the paperwork you are being asked to sign.
The single most useful check is arithmetic: add the price, taxes, fees and add-ons, subtract rebates, cash down and trade equity, and confirm the result matches the amount financed printed on the document. If it does not match, something on the page needs an explanation before you sign.
What it means
A car deal is not one number. It is a stack of numbers that combine into a balance you finance or pay. The document that lists them is usually called a buyer's order, purchase agreement or lease worksheet.
Signing means you accept every line on that document — including lines you did not discuss.
Why it matters
Dealership staff work through these documents every day. Most buyers see one every few years. That gap in familiarity, not bad intent, is why figures go unquestioned.
What to look for
- Selling price — does it match the price you agreed to, before any fees?
- Documentation, processing or dealer fees — listed, and at what amount?
- Government fees — title, registration, license, and any separately printed non-tax fee.
- Add-ons and optional products — protection packages, appearance packages, service contracts, GAP.
- Trade allowance and trade payoff — both printed, not just a net number.
- Rebates, incentives and cash down — shown as reductions.
- Amount financed or balance due — the figure everything else adds up to.
- APR, term in months, and monthly payment — all three, in writing.
Questions to ask
- Can you walk me through how you got to the amount financed?
- Which of these charges are optional, and which are required?
- What is the APR and the term, in writing?
- Is my trade payoff quoted from my lender, and is it current?
- If I remove this optional product, what changes on this page?
When ASK RD can help
Upload the paperwork and ASK RD reads each printed figure, recalculates the amount financed from the visible components, and tells you which lines deserve a clear answer. It does not guess at figures that are not on the page.
Example
Hypothetical example — illustrative figures only
- Selling price
- $34,000.00
- Dealer add-ons
- $1,800.00
- Documentation fee
- $399.00
- Taxes
- $2,210.00
- Title / registration
- $185.00
- Cash down
- −$2,000.00
- Amount financed
- $36,594.00
These are made-up numbers used to show how the components combine. They are not a real transaction.
Common mistakes
- Negotiating only the monthly payment and never checking the price or term.
- Signing before the APR and term are printed on the page.
- Assuming every listed product is required.
- Not asking for the trade payoff figure in writing.
Frequently asked questions
How do I compare two car deals?
Compare the total amount financed and the total of payments, not the monthly payment. A lower payment on a longer term can cost more overall.
Should I focus on monthly payment or total price?
Total price first, then financing. The monthly payment is an output of price, term and rate, so it can be lowered without improving the deal.
Have a deal in front of you? ASK RD can help you analyze the numbers and identify questions to ask before you sign.
ASK RD is AI-powered deal analysis and guidance. Prefer hands-on help through a purchase? See ASK RD Concierge, our optional human assistance. ASK RD is not a dealership, lender, law firm or a substitute for legal, tax or financial advice.
Keep reading
More on the ASK RD car buying guide and in Stump the Dealer deal breakdowns.