A retail installment contract (RIC) is the credit contract that turns a car purchase into payments, and you should read the APR, the amount financed, the total of payments and every optional add-on before you sign, because those four lines decide what the car really costs. Federal Truth in Lending rules, starting at 15 U.S.C. 1601 and implemented in Regulation Z, require clear cost disclosures on consumer auto credit. The CFPB auto loan tools explain how to compare offers.
Find the five money lines first
Locate the cash price, the down payment and trade allowance, the amount financed, the APR and the total of payments. If any add-on is financed, it should appear in the amount financed. Recalculate the payment with a preapproval APR from your bank or credit union so you can see the spread.
Optional products vs required ones
Service contracts, GAP, paint protection and credit insurance are usually optional. If the contract treats them as required to get the rate, ask for that condition in writing and compare a quote without them. Our GAP insurance guide and payment packing guide cover common add-ons.
Spot delivery and conditional terms
Some deals let you drive before financing is final. If the RIC or a separate notice says the deal can be unwound when the lender declines, read that clause twice. Our spot delivery guide covers the risks.
Negative equity and rolled balances
If a trade payoff is higher than the trade allowance, the difference may be rolled into the new amount financed. That raises interest cost even when the payment looks smooth. Our negative equity trade-in guide explains the math.
Before you sign
Take the RIC to a quiet spot, photograph every page and decline any product you do not want. Compare the APR with your preapproval on the same term. If numbers change after you leave, do not resign until you understand why. Keep copies of the Buyers Guide and the odometer statement with the RIC. Our Buyers Guide explainer shows what that sticker should say.
Questions to ask before you sign
- What is the APR, the amount financed and the total of payments?
- Which add-ons are optional, and can I decline them?
- Is the rate conditional on buying insurance or a service contract?
- When does the first payment start, and is there a deferred-interest period?
Reading the history report
Read the title section first: any salvage, rebuilt, flood or lemon brand changes the value more than anything else. Then line up the odometer readings by date and look for gaps or drops. Check the number of owners and the states where the car was registered. An approved NMVTIS check adds insurer and salvage-yard records. Our odometer discrepancy guide explains odd mileage entries.
Paperwork to keep
Keep the buyer's order, the retail installment contract, the odometer statement, any Buyers Guide, warranty or service-contract papers and every payoff or lien letter in one folder. Photograph the window sticker and the dash mileage on the day you sign. If a dispute comes up later, dated paperwork is what a lender, an insurer, a dealer licensing agency or a court will ask for first.
Compare the financing
Get a preapproval from a bank or credit union before you visit, so you can compare it with the dealer offer on the same term. Compare the APR, the amount financed and the total interest, not just the monthly payment. The CFPB auto loan tools walk through what to read on an offer. Decide on add-ons such as GAP and service contracts on their own merits, and get the price of each one in writing.
What the report costs
As of early November 2026 a CARFAX bought direct usually costs around $44.99, and AutoCheck sits a little lower. We are a licensed CARFAX and AutoCheck reseller, not affiliated with CARFAX, AutoCheck or Experian. Our guest price has been about $5.50 a report, about $4.50 for members, and about $6.75 for a CARFAX and AutoCheck bundle. Confirm the price at checkout, since it can change.
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