The Truth in Lending box on an auto loan shows the APR, the finance charge, the amount financed and the total of payments, and those four numbers tell you the real cost of the loan, so read them before the monthly payment. Federal law requires these disclosures on closed-end credit like car loans under 15 U.S.C. 1638, and Regulation Z, section 1026.18 spells out each item, including the payment schedule and, on a dealer credit sale, the total sale price.
The four main numbers
The APR is the yearly cost of credit as a rate. The finance charge is the dollar cost of credit. The amount financed is what you are borrowing after down payment and trade, including any add-ons rolled in. The total of payments is the sum of every payment if you pay as scheduled. On a dealer sale, the total sale price adds your down payment.
Payment schedule
Check the number of payments, the amount and when they start. A final payment that is much larger than the rest is a balloon. A first payment far in the future can mean interest is building.
Add-ons inside the amount financed
Service contracts, GAP and other products are often added to the amount financed. Ask for each one by name and price, and ask whether the rate changes if you decline it. Our extended warranty guide and GAP insurance guide cover two common add-ons.
Compare offers on the same terms
Line up two offers with the same term and amount financed, then compare APR and total of payments. Our prepayment penalty guide covers early-payoff rules.
Where the box appears
At a dealer, the disclosure is usually printed on the retail installment sales contract, often as a row of boxes near the top. At a bank or credit union, it may be a separate document. The lender must give it before you are bound by the loan. If the numbers on the final contract differ from the ones you were quoted, stop and ask why before you sign. Watch for an amount financed that is larger than the price you agreed to minus your down payment, since the difference is usually add-ons, fees or negative equity from a trade. Our negative equity guide covers that last case.
A quick sanity check
Multiply the monthly payment by the number of payments and add any balloon. That should match the total of payments. Subtract the amount financed from the total of payments, and you should get the finance charge. If either check is off, ask for a corrected contract. The CFPB auto loan tools linked below include worksheets that help you compare offers side by side.
Questions to ask before you sign
- Is this the final Truth in Lending box, or will it change?
- Which add-ons are in the amount financed?
- Is the rate the same if I decline each add-on?
- When is the first payment due?
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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