ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Buying a New Car

What information must the creditor of my car loan give me?

The creditor (the person or institution to whom you will owe money) must tell you

1. the APR (this must be conspicuous--for example, printed in red or in much larger type than the rest of the document);

2. the method by which the creditor sets the finance charge;

3. the balance on which the creditor computes the finance charge;

4. the dollar amount of the finance charge (this must also be conspicuous);

5. the amount to be financed (the loan);

6. the total dollar amount that will be paid (loan plus finance charge); and

7. the number, amount, and due dates of payments.