Don’t Sign Yet: The 50-Point Checklist You Must Review Before Buying a Car 

SCAMS

5 Minutes Read Time

The "Finance Office" Trap

You’ve spent hours test driving. You’ve haggled over the price. You are exhausted, hungry, and ready to take your new keys. Then, you are ushered into "The Box"—the Finance & Insurance (F&I) office.

This is where the real profit is made.

The Finance Manager will print a stack of long, complex legal documents (often on dot-matrix printers or digital tablets) and ask you to "sign here, and here, and here." They rely on your fatigue. They rely on the fact that reading legal jargon is boring.

Do not rush. A single oversight in this room can cost you thousands of dollars.

We have compiled the ultimate 50-Point Inspection Checklist for your purchase agreement. You can print this out and bring it with you, or—if this looks overwhelming—you can simply download the SignSpark AI app to scan and verify these points instantly.

Part 1: Verify The Basics (The "easy" mistakes that void titles)

Before you look at the money, look at the metadata. A typo here can cause nightmares at the DMV later.

  • Buyer’s Name: Is it spelled exactly as it appears on your Driver’s License?
  • Address: Is your current residence correct? (Wrong zip codes affect tax rates).
  • Co-Buyer’s Name: If valid, are they listed correctly?
  • Vehicle Identification Number (VIN): CRITICAL. Check this against the actual car and the window sticker. Do not assume the paperwork matches the car.
  • Make, Model, and Trim: Check this against the actual car and the window sticker. Do not assume the paperwork matches the car.
  • Year: Verify the model year (especially if buying used near a model changeover).
  • Color: Listed correctly?
  • Odometer Reading: Does the mileage on paper match the dashboard?
  • Stock Number: Matches the dealer's inventory tag?
  • Date of Sale: Must be today’s date (affects warranty start date).

Part 2: The "Price" You Negotiated (Where the money disappears)

This is the most common area for fraud. The price you agreed to via email or handshake often changes when it hits the official contract.

  • Agreed Selling Price: Does this match the email quote? (Look for "Unit Price" or "Cash Price").
  • MSRP: If buying new, is the MSRP listed correctly for reference?
  • Rebates & Incentives: Are the manufacturer rebates deducted after the negotiated price, or were they hidden inside it?
  • Down Payment (Cash): Is the exact cash amount you put down credited?
  • Down Payment (Credit Card): If you paid a deposit by card, is it listed?
  • Trade-In Allowance: Is the amount they offered for your old car accurate?
  • Trade-In Payoff: Is the amount you owe on your old car correct? Call your bank to verify this payoff quote yourself.
  • Net Trade Equity: (Allowance minus Payoff). Make sure the math is right.
  • Taxable Amount: Are you being taxed on the full price or the price minus the trade-in? (Varies by state).
  • Sales Tax Rate: Verify the percentage. Is it your county's rate or the dealer’s? (It should be yours).

Part 3: The Fees (Good vs. Junk)

Dealers pack profit into "fees" hoping you won't notice.

  • Documentation Fee ("Doc Fee"): Is it within your state's legal limit? (e.g., California is capped at ~$85; Florida has no limit).
  • Title Fee: Should match the DMV's actual cost.
  • Registration Fee: The cost to transfer your plates.
  • Electronic Filing Fee: A convenience fee for the dealer online filing.
  • Lien Fee: The cost to record the bank's loan.
  • Tire/Battery Fees: State-mandated environmental fees (usually small, $1-$5).
  • Trade-In Payoff: Is the amount you owe on your old car correct? Call your bank to verify this payoff quote yourself.
  • Destination Charge: Valid on new cars (window sticker), but SCAM on used cars.
  • "Dealer Prep" Fee: RED FLAG. This is usually pure profit.
  • "Reconditioning" Fee: RED FLAG. Used cars are sold at a price that should include being drivable.
  • "Market Adjustment" / ADM: The "Because we can" fee. Did you agree to this?

Part 4: The Add-Ons (The "Optional" Products)

These are often pre-printed or slipped in without asking. If you didn't ask for it, it shouldn't be there.

  • GAP Insurance: Often cheaper through your own insurance agent. Check the price.
  • Extended Warranty / Service Contract: Check the term and deductible.
  • Pre-Paid Maintenance: Is it actually worth the cost of the oil changes?
  • Tire & Wheel Protection: Usually expensive.
  • Key Replacement Insurance: Can you replace a key for less than $400? If so, decline.
  • VIN Etching: RED FLAG. Dealers charge $200+ for a $20 kit.
  • Nitrogen in Tires: RED FLAG. Air is 78% nitrogen. Don't pay $99 for this.
  • LoJack / GPS Tracker: If it's "hard installed," ask them to remove the fee or the device.
  • Fabric/Paint Protection: Usually a spray wax sold for $500+.
  • Theft Deterrent: Verify what this actually covers.

Part 5: The Financing & Legal (The Binding Terms)

Once you sign here, the car is yours. There is generally no "return policy" on cars.

  • Annual Percentage Rate (APR): Does this match the rate the bank offered you? (Dealers can legally mark this up).
  • Term Length: Did your 60-month loan magically become 72 months to "lower the payment"?
  • Finance Charge: The total dollar amount of interest you will pay.
  • Total of Payments: The true cost of the car (Price + Interest).
  • First Payment Date: Is it 30 days or 45 days out?
  • Prepayment Penalty: Can you pay the loan off early without a fine? (Ensure this box is checked "NO").
  • Mandatory Arbitration Clause: By signing this, you often waive your right to sue the dealer in court. Read carefully.
  • "We Owe" / "Due Bill": If the dealer promised to fix a scratch or add floor mats later, it must be written on this specific form. If it's not written here, it doesn't exist.
  • "As-Is" vs. Warranty: On used cars, is the Buyer's Guide window sticker box checked correctly?
  • Your Signature: Ensure you sign exactly as your name is printed.

Conclusion: There is a Faster Way

If reading that list made you tired, imagine doing it while a Finance Manager stares at you, tapping their pen, with your kids crying in the waiting room.

Humans miss things. Dealers rely on that.

Don't rely on your eyes alone.

Use SignSpark AI (powered by CarBuyInsight) to scan your contract in seconds. Our AI automatically checks these 50 points, benchmarks the fees against local averages, and alerts you to hidden "Junk Fees" before the ink dries.

[Download SignSpark AI] [Upload Your Contract & Claim $15]