Knowledge is the key when financing a new or used car. Too often we hear of consumers duped in to dealerships by 0% APR only to discover that they do not meet the credit qualifications.  In general, people with lower credit ratings pay higher loan interest rates. So the first step in buying a car is to know your credit score. You can get your credit report here.  

If your credit score is below 570, take some time and repair your credit and then apply when you score is higher. By taking extra time now, you can save yourself thousands of dollars in interest payments of the course of the loan.  To start repairing your credit, click here.

Once you have established a good credit score, you need to make the most obvious decision: what kind of car do you want? Today, there are more models and makes of cars and trucks on the market than ever before. With these new models and makes, there is an increasing number of options that consumers have. For example, twenty years ago you would have never seen a Ford Explorer Eddie Bauer Edition.This makes the consumer's decision-making process even tougher. The process is significantly slimed down because most consumers know about which type of car/truck that they wish to purchase. This is the key: KNOW WHAT YOU WANT.

Once you have established a general idea of which type of vehicle that you want, do your homework. The smart consumer never goes into a dealership until this step has been accomplished. Car buyers that know how the game works and who are willing to haggle often save themselves thousands of dollars. Your goal should be to know the car as much as the salesperson knows the car. Study the brochures and sales material either by stopping by a dealership or researching online. We have compiled a list of dealer websites as a reference for you so start your selection by clicking here. Take particular note of the options that are standard on the models and which are part of which packages. Many times salesmen will try to "trick" you into thinking that you are getting something but the truth is that it is already standard for the model.

Important: Car dealers get factory discounts from the "official" factory invoice price. In these situations, you can not pay attention to the Manufacturer's Suggested Retail Price (MSRP) because this figure is derived from the invoice price that was originally used. Remember, this is merely a guide even when there is no discount to the invoice price. Dealers are willing to bargain with you at the expense of their already high profit margin. In most cases, the profit margins for car dealership are between 10-20%. You need to be able to distinguish between the terms that are listed on advertisements. Salesmen will often use these terms as well to confuse you. STUDY THEM CAREFULLY.  For a list of terminology that will see on these advertisements click here.

To get a free auto loan quote, click here.