Once you have applied for and received your license, it is important to understand how to conduct a finance sale. Note: that a Retail Installment contract must always be in writing (not verbal). You need to include:

The contract needs to have a section pertaining to insurance coverage and liability as well as a Notice to Buyers concerning the details of the contract and how they can protect themselves.

The contract shall also include details of the amount financed and how it is calculated. The amount financed is considered the amount of credit provided on the buyer’s behalf. This amount is calculated as: the cash price minus any down payment plus any additional charges such as additional warranties purchased, tag and title fees, and sales taxes. This “amount financed” will then be used to compute the interest owed throughout the life of the loan.

Florida Statute Chapter 520.07, Information Obtained from: http://www.flsenate.gov/Laws/Statutes/2011/520.07 which further explains in detail, the Retail Installment Contract. The statute also details the necessary information that need to be disclosed in the contract.

Example: Mia buys a car for $8,000. She is also buying an extended warranty for $1,000. The state tag and title fees total $220. She is giving the dealer a down payment of $2,000. Mia will be  financing: