7. What is the term or tenure of the loan?: Never forget to ask about the loan tenure.  The ‘Term’ or ‘tenure’ is nothing but the length of payment of your loan. Specifically on used car financing, this can be anywhere between 24 and 36 months, depending on your loan amount. According to your term, you will be able to decide on the monthly payments you are comfortable with. Be sure to find out what the term of your loan is. Some finance contracts with low interest rates specify in the fine print that the loan term need to have a specific time, usually 2-3 years. This will make your monthly repayments higher. It may also suit you to have lower repayment over 5, 6 or 7 years.

8. What are the late charges on this loan?: Read the fine print and look out for the late payment charges or penalties. Lenders have the right to charge you for paying your monthly loan payment late. Sometimes, the late fee may be 5 percent or more of the unpaid portion of your regularly scheduled payment regardless of any partial payments the lender has received. There are dealers who may charge penalty for paying off the loan early too. Try to avoid such terms if possible or else it will be a problem if you decide to refinance the loan down the road.

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