I received the car loan through the dealer and I have received a pay amount/terms from the bank. The contract I received from the dealer is a Retail Installment Contract. Does the bank purchase that contract from the dealer, and will it change?
What is the difference between a retail installment contract and a loan agreement for an auto loan?
Yes the bank does purchase the contract from the dealer. No it will not change. The contract you signed if all was approved and arranged will be the terms of you loan.
The retail contract should disclose all information like total financed, down payment, if you bought any extended warranties etc their price will reflect in there as well. It also lines out the terms of repayment such as length of the loan and interest rate. It will give the monthly payment and the due dates of payment.
One of the lenders the dealer works with will buy the paper/contract from the dealer. The terms of the contract will not change just because a bank buys it.
What is the difference between a retail installment contract and a loan agreement for an auto loan?
Yes, the car dealers deal with banks who give them a kickback for getting a lot of new loans for the bank......your best bet would have been to call around to several banks and credit unions and arrange for your own terms...the dealers will never tell you that though.......many car dealers are very unscrupulous and give you loans at much higher rates depending on how much they think they can fleece you.......
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