CFPB Releases "Know Before You Owe" Guide For Auto Purchases

The Consumer Financial Protection Bureau ("CFPB") has released an "auto loan shopping sheet" and other online resources as part of its " Know Before You Owe" initiative, which aims to assist consumers with comparison shopping and financing auto purchases. The initiative "walks consumers through each step of the auto finance process to help them decide how much they can afford to borrow and what options are right for them."

According to the CFPB, the initiative was spurred by research regarding consumer behavior during the auto financing process, as well as complaint data evidencing difficulty understanding loan features prior to negotiations. The CFPB seeks to educate consumers regarding the total cost of the loan rather than just the monthly payment, encourage comparison shopping, and to be cautious regarding "financing features and add-ons that could lead to costly surprises down the road."