The price of used cars may be dropping, but that doesn't mean most people can just drop off a hunk of cash and drive off a lot with their ride of choice. Instead, a large number of people turn to auto loans to help them afford a car. While loans can be a huge advantage for budget-conscious buyers, there are still some scenarios where the financing options can cause stress and costly payments in the long run. 

According to Bloomberg News, the number of late payments by subprime car buyers is rapidly rising, which is cause for concern. Although many of these borrowers, most of whom have spotty credit history, can manage to make their payments on time, others are struggling – perhaps because of the type of loan they sign up for. 

Instead of leaving your financing up to chance, pay attention to the details of your loan and make sure you're getting a good deal. Here are two warning signs you should watch out for. While these factors aren't the only red flags out there, they are two of the most common. 

1. You don't understand the fees
Auto financing is certainly complicated, and no one is asking every buyer to become an expert. Still, you should have a clear idea of what you're paying for. Take a close look at the loan you're agreeing to and make sure every aspect of the payment is explained clearly. Taxes and fees are normal, but they should be explicitly explained so you know what your money is going toward and how much you're really being charged. 

2. There are odd conditions 
CNBC noted that situations may arise when a dealer tries to pull a fast one on the driver. In these scenarios, a company will strike a deal with the buyer and sign off on the paperwork. Later on, said company contacts the buyer, claims something was wrong with the conditional sale and makes outrageous demands, such as additional fees or even the return of the car. If any dealer ever tries to back out of a contract, you should alert the proper authorities. 

Ultimately, a good auto loan will provide you with transparency along with manageable payments. If you're struggling to find one of these elusive financing options, let the team at NJ State Auto help. Our financing department can get you approved for a loan quickly and easily, explaining all of the ins and outs of the process along the way.