Car Dealer Contracts You Will Encounter when Buying a Car

This section will familiarize the reader with the different types of contracts they may encounter while in the “F&I” office. Admittedly, it is rare that a dealer will try to put forth some exotic document. However, it is good to know where to look on each contract to make sure the numbers match the agreed on upon price. 

 

Often the “F&I” managers strategy is to begin by having the customer sign some innocuous documents such as DMV or federal forms and then roll into the contracts that could have some undisclosed charges.

 

In the old “System House” technique, the “F&I” manager would have the paperwork pre-printed with "Back-End" profit already included. Then they would pattern the process by having the customer “get used to signing”. Often the “F&I” Manger will have all of the documents on their lap and present one after the other to the customer in a quick systematic fashion, with very little disclosure. The idea being that the customer would rarely interrupt the fast paper stream.

 

Customers must read what they are signing regardless of the disclosure being offered by the “F&I” Manager.