Understanding Fi Department Procedures
You've made the decision to purchase a vehicle and found the one you want. Congratulations! Now comes the rest of the paperwork.
After submitting your application for credit the next step is meeting with the F&I (finance and insurance) agent. They will have already entered your basic information off of the credit application and will verify it with you again to make sure the contract (also referred to as a Purchase Money Security Agreement) and title are processed correctly. At this point he/she will ask for any documents that are still needed such as:
1) valid drivers license, 2) proof of income by current pay stubs, 3) proof of residence usually in the form of utility bills, 4) proof of insurance, and 5) references, which usually consists of at least two family members not living with you and three friends or co-workers that you are in regular contact with.
The contract itself will show your name and address, the dealership name and address, the vehicle information, and then the agreed upon purchase price, sales tax and terms. It will also disclose all fees the dealership charges to process the loan and all related paperwork, plus information regarding any trade-in vehicle and/or down-payment you are including in the deal.
Some of the options you will have will be to add extended warranty coverage to the vehicle which would help cover the costs of most major repairs after you pay the required deductable, or adding what is known as a GAP policy, (some lenders require this). The GAP policy does just that, it covers the gap between what the market value of the vehicle is at the time of loss and the balance owing on your loan.
Other documents required will be an Odometer Disclosure Statement, verifying that you are aware of the mileage of the vehicle; a Power of Attorney form, which is required in order for the dealership to process the title and registration on your behalf; plus any number of documents specific to the lender who will be financing you or required by the state you live in.
You will be asked to review and read all documents, including the fine print that discloses all liabilities, limitations and remedies as required by law, before signing and if there is anything you don't understand - now is the time to ask for clarification.
Once all the documents are completed, reviewed and signed, the F&I agent will issue a Temporary Registration Permit, referred to as a TRP, making it legal for you to drive the vehicle while your title and registration is being processed. Some dealerships give what is known as a 3-Day Permit to allow you time to bring in any missing documentation or down-payment that still may be needed and then change that to a 45 day permit upon receipt of said documents. The 45 Day Permit allows processing time for your state motor vehicle department to complete transferring the vehicle into your name. This may vary depending on the state you live in but your F&I agent will be able to let you know the laws that apply in your area.
