Are there hidden fees I should look for in the contract?

The interest rate isn't the only cost. When reviewing your loan agreement, keep a sharp eye out for these ancillary fees. Some are legitimate state fees; others are "junk fees" added by lenders to pad their profits.

1. Lien Recording Fee (Legitimate)

The lender has to pay the Idaho DMV to register their lien on your title. This usually costs between $15 and $30. Lenders will pass this cost on to you, which is fair.

2. Document / Processing Fee (Common)

Many lenders charge an origination or administrative fee for processing the paperwork. This can range from $25 to $100. Ask if this can be waived.

3. Late Fees (Avoidable)

Check the contract for the "grace period" (usually 10 days). After that, late fees can be substantial. Ensure you know the exact penalty for missing a payment.

4. Repossession Fees (The Big One)

If they have to send a tow truck to get your car, they will tack that cost onto your final bill. Repossession fees can easily exceed several hundred dollars, making it even harder to get your car back.

5. Prepayment Penalty (The Dealbreaker)

Never sign a contract with a prepayment penalty. You should always have the right to pay off your loan early to save on interest. In Idaho, most reputable lenders do not charge this, but you must double-check.