When you purchase a new car, you will pay for it in one of two ways. You either pay cash or you finance with a loan. Not often do you see someone paying cash outright for a vehicle, so the typical route is with the car loan.

Choosing to finance your car through the dealership is a convenience because it can be done on the weekend and in the evenings when banks are closed. But you will find higher interest rates for this convenience.  You could finance through your credit union or bank and get better rates but then also have credit history and income requirements for anyone applying for a loan. Then there are those who can use their home equity to purchase a car. This options sounds the best but if for some reason you cannot make your car payments, then you have that risk of not only the car but your home too.

Before you even step out the door to the car lot, check your credit report first and see if there are any errors that need to be fixed.  Small errors can really effects your score and will then effect the interest rate that you will be offered. Look for car lots that are offering rebates or incentives on their interest rates. There is a lot of competition out there, so shop around for the best deal you can find.