One of the best things that you can do if you’re buying a car is to get your own financing. There are a few good ways to do it, but one of the best ways to go about it is to get multiple quotes. The more quotes you get, the more options you have. There can be a lot of variance in the quotes, and every lender has its own scoring system: some lenders will give you points for being a college graduate, others will give you better terms because you had a good account with an affiliated company, etc.

It’s also a good idea to get multiple quotes and have your own financing available because it gives you power. If you have your own financing available, you can use it as leverage to get a better rate at your local dealership. If you walk into a dealership and you don’t have any financing lined up, you don’t know anything about your credit, etc., they might be able to convince you that you have bad credit when you really don’t, and they might be able to charge you 3 or 4 percent more in interest than you can get otherwise.

But remember when you get your own financing that dealerships tend to have the best lending rates. By using the quotes you get on the internet, it might be easier for you to get a special rate or a discount. The dealership is likely to have millions of dollars in loans, and the bank will be more willing to work with the dealership for a special interest rate than they would an individual who has only one loan for a few thousand dollars. That’s why it’s a good idea to get your own financing lined-up on the internet, you can still finance at the dealership, but you can use your outside quotes as a bargaining tool.

In addition to using our recommended car financing quote services, you should also consider calling your local credit union. Sometimes credit unions offer better interest rates, and they’re a good resource you should check into.

Before you look for financing, you should:

• Review your family’s finances to find out just how much you can afford to spend. You can use our budget calculator and read more about figuring out how much car you can afford.
• Make a list of all the vehicle features you will really need.
• Keep in mind that the car’s sticker price does not mirror the full cost of owning a financed vehicle

Securing reasonable financing is easier than ever in today’s changing consumer market, with increasing competition between car dealers and financial institutions. Pre-shop for the car that fits your budget – use the library, the Internet, your neighbors, competing car salesmen – every available means to learn who is offering the lowest financing and interest rates.

As always, take your time when buying a new or used car. Do your car research, get multiple used car financing quotes, and feel free to contact us with your questions.