| Is it possible to own a new car, even if you don't | | | | vehicle price. Remember that the value of your |
| have $20,000 to spend? Absolutely. Auto loans make | | | | current vehicle may be applied toward your down |
| car ownership an affordable reality, and virtually | | | | payment. |
| anyone can arrange for financing. If you have | | | | Step 5 |
| sufficient income and a good credit rating, you will be | | | | Once you know the type of car you're buying, the |
| able to choose from a selection of auto loans. | | | | purchase price, the available rates and the amount of |
| Step 1 | | | | down payment you'll need, it's time to shop for a |
| Choose your wheels before arranging your loan. The | | | | lender. Be careful in this step, as there are many |
| bank or finance company will want to know what | | | | shady lenders who are quick to hand out cash in |
| you're buying, and how much you'll need to borrow. | | | | exchange for very steep repayment amounts. |
| Shop around by checking automotive websites and | | | | Compare interest rates, the loan term (two years, |
| visiting local car dealers. Once you know exactly what | | | | three years, etc), monthly payment amounts and, of |
| you want to buy, you can negotiate a price with the | | | | course, how much you're able to spend. These |
| seller. With price in hand, you'll find it easier and faster | | | | factors will all help to determine your choice of |
| to secure your financing. | | | | lenders. |
| Step 2 | | | | Step 6 |
| Shop around for the best interest rates. There are | | | | Don't panic if you don't qualify with the first lender |
| online websites like that publish surveys and polls of | | | | you choose. There are literally endless auto loan |
| loan rates across the United States. The rates of | | | | options available to you. Just be sure that you're not |
| auto loans will fluctuate with the market, and they | | | | living beyond your means. You may need to save a |
| definitely differ from lender to lender. Shop around to | | | | little more to come up with a bigger down payment, |
| find the lowest rate and best lending terms. Checking | | | | or simply choose a less expensive car. |
| with local banks, credit unions and even car dealers | | | | Step 7 |
| can save you money. | | | | It's easy to create a lousy credit rating, and the poor |
| Step 3 | | | | rating can hound you for a long time. If your credit |
| Purchasing a new car is a costly, and sometimes risky | | | | rating is keeping you from securing an auto loan, you |
| business. Auto loans involve a lot of money, and you | | | | can begin working to rebuild it. Pay your bills on time, |
| need to prevent any possibility of getting ripped off. | | | | and clear up any outstanding debts. After six months, |
| Check with used car values to see how much your | | | | you'll be able to reapply for a new credit rating. If this |
| current vehicle is worth. Knowing your car's value will | | | | is not an option, you can choose to look into bad |
| help you to get the most money for your trade-in. | | | | credit auto loans. Insurance companies that offer bad |
| Consult a black book or research online to find the | | | | credit loans don't require their customers to submit |
| current market value of your vehicle. | | | | their credit histories, so it is possible to secure an |
| Step 4 | | | | auto loan despite poor credit. However, remember |
| Determine how much you're able to spend as your | | | | that the financer will view you as a risk, and you will |
| down payment. Providing cash up front can help you | | | | pay higher rates. |
| to secure an auto loan, as it proves to the lender | | | | Auto loans make it possible for virtually anyone to |
| that you're responsible and willing to repay. It also | | | | buy a new car. It's why you see so many new |
| decreases the amount of principle and interest you'll | | | | vehicles on the road today. If you think you can't |
| pay throughout the term of your loan. Some lenders | | | | afford the car of your dreams, shop around. You |
| require a down payment of twenty percent of the | | | | might be surprised at what you find. |