What the F&I office does

When you decide to buy a vehicle through a dealership, the salesperson will usually refer you to someone in the F&I or business office. The CFPB says this person discusses dealer financing options and handles the contracts, paperwork and agreements associated with the purchase of the vehicle. The F&I department also sells optional add-on products and features, including extended warranties.

From What is a Finance and Insurance (F&I) department? (Ask CFPB), read November 9, 2026.

Dealer-arranged financing: buy rate and contract rate

With dealer-arranged financing, also called indirect financing, the F&I department collects your information and sends it to one or more lenders, which can include banks, credit unions and nonbank auto finance companies. The CFPB explains these terms:

From What is a buy rate for an auto loan? (Ask CFPB), What are the different ways to buy or finance a car or vehicle? (Ask CFPB) and What is a Finance and Insurance (F&I) department? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026.

Optional add-on products

The CFPB says add-on products and services are optional. You are not required to buy them, but if you choose to, the price is negotiable. They may include physical features such as alarm systems, window tinting and tire or wheel protection, as well as extended warranties or service contracts, GAP insurance, and credit insurance or debt cancellation or suspension products.

If you agree to add-ons, they increase your loan amount and your monthly payments. Dealers are not the only sellers of most of these products, and you may find better prices or more generous terms if you shop around. The CFPB also says to fully evaluate whether a product is necessary, that you are not required to buy add-ons to get financing through the dealer, and that you may have the right to cancel them later if you change your mind. Our guide to GAP insurance covers one common add-on.

From What things can I negotiate when shopping for a car or auto loan? (Ask CFPB) and What is a Finance and Insurance (F&I) department? (Ask CFPB), read November 9, 2026.

What to ask in the F&I office

Drawing on the CFPB's guidance, these questions help you compare and negotiate:

• What are the interest rate, APR, loan term and estimated monthly payment? Compare offers by the loan amount, APR, length and payment, not the payment alone.
• Do I qualify for a loan with better terms? The CFPB says negotiating can be as simple as asking this, and the first quote may not be the lowest rate you qualify for.
• Were there other lender offers? You can ask whether other offers had lower rates or better terms.
• Is there a prepayment penalty? If so, you can ask to have it removed.
• Which items are optional add-ons, and what does each cost? Add-ons are optional and their prices are negotiable.

Bringing a preapproval from a bank or credit union gives you a quote to compare. See how to finance a used car and APR vs. interest rate.

From What things can I negotiate when shopping for a car or auto loan? (Ask CFPB), What are the different ways to buy or finance a car or vehicle? (Ask CFPB), What is a Finance and Insurance (F&I) department? (Ask CFPB) and How do I compare auto loan offers? (Ask CFPB), read November 9, 2026.

Financing a used car at Elgin Auto Sales & Service Center

Shopping for your next vehicle? Browse our used inventory, see our financing options, start a finance application, or get a value with our trade-in form.

Our sales department at 1200 E. Chicago St. in Elgin is open Monday to Friday 9 a.m. to 7 p.m. and Saturday 9 a.m. to 6 p.m., and is closed Sunday. Get directions.