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Compare the car price and the financing separately.Start with the amount you will actually financeRequest an itemized out-the-door price, then subtract the down payment and any positive trade-in equity. Identify taxes, dealer fees and optional products separately. A service contract added to the balance costs its purchase price plus the interest charged to finance it.If the trade-in is worth less than the existing loan payoff, the difference is negative equity. Rolling that gap into a new loan increases the new balance. Ask the dealer to show both the old payoff and trade-in allowance so the shortfall is visible.Other arrangements to compareInstallment termsUnderstand how principal and interest change across the payment schedule and how early payoff works.Title loansThis is a different transaction using an existing vehicle for cash; it is not ordinary purchase financing.

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