What important document must a buyer sign when financing a vehicle?

A financing agreement is a critical document that a buyer must sign when obtaining a loan to finance a vehicle. This document outlines the terms and conditions of the loan, including the amount financed, interest rate, repayment schedule, and any fees associated with the financing. By signing the financing agreement, the buyer acknowledges their obligation to repay the loan under the specified terms, ensuring that both the lender and the borrower are clear about the financial commitments involved.

While a sales contract is important as it details the purchase of the vehicle itself, it does not specifically address the financial terms of the loan. An insurance policy pertains to the coverage needed for the vehicle but is not directly related to financing. A warranty confirmation addresses the terms of any warranties covering the vehicle but, again, does not involve the financing process of the vehicle purchase. Thus, the financing agreement is the key document that directly connects the buyer to the financing terms necessary for acquiring a vehicle through a loan.