FINANCING CLARITY GUIDE

Why is the amount financed higher than the car price?

The selling price is only one line in the deal. Taxes, registration, dealer fees, optional products, and unpaid trade balance can all enter the amount financed after cash and trade credits are applied.

Check your written quote Learn the worksheet

FOLLOW THE EQUATION

Rebuild the balance one line at a time.

A simplified path is selling price, plus taxable products and fees, plus taxes and government charges, plus negative equity, minus cash down and positive trade equity. The contract controls the final figures.

Start with the selling price

Confirm the vehicle price after any stated discount, but before taxes and financed items.

Add every charge

List taxes, registration, documentation fees, accessories, GAP, service contracts, and other products separately.

Trace the trade

Compare the trade allowance with the payoff. If payoff is higher, the difference may be added to the new financing.

Apply credits once

Cash down, rebates, deposits, and positive trade equity should appear clearly and should not be counted twice.

FICTIONAL WORKED EXAMPLE

A $27,500 car can become $30,860 financed

This fictional example adds written charges and negative equity, then subtracts cash. The exact contract may use different labels.

ILLUSTRATIVE WORKSHEETNot a customer document
Selling price
$27,500
Tax + fees
+$2,360
Negative equity
+$3,000
Cash down
−$2,000
Illustrative amount financed
$30,860
Ask: Please identify every line between selling price and amount financed.

ASK BEFORE SIGNING

“Please show me each line that takes us from selling price to amount financed.”

That question keeps the conversation focused on written figures rather than the monthly payment alone.

Review your quote free