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Step 1
Research the current range of auto loan rates before you decide what car to purchase. Find out how much your monthly payment will increase for each additional $1,000 in the amount your finance. This knowledge will allow you to determine how much you can spend and still remain within your budget.
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Step 2
Choose the new car make and model that you plan to purchase before you seek out car financing online. Set limits on the amount of financing you will seek and the equity you will establish with your down payment and trade-in. These factors often influence the interest rates and other elements of the car financing deals that you will be offered by lenders. Getting them straight on the front end will allow you to avoid comparing apples to oranges.
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Step 3
Begin by checking car manufacturer and dealership promotions for aggressive financing campaigns that may offer 0 percent interest, cash back or other extremely favorable terms. These promotions are usually advertised on television, in your local newspaper's "auto" section and online.
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Step 4
Get online lenders to compete with each other for your financing business by submitting preliminary information at an online lenders' clearinghouse such as Lending Tree (see Resources below). Use these offers to get an even better deal from your dealership by showing them what they have to beat.
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Step 5
Compare the rates that you are offered by competing lenders with the best rates reference on Bankrate.com (see Resources below). If you are not being offered the best rates available, it may indicate problems with your credit report and credit score.
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Step 6
Check the website of your own bank or credit union to shop for any special programs it may have for financing an automobile purchase. Banks sometimes provide favorable rates to their existing customers who agree to set up automatic withdrawals to make their monthly car payments.
