Title: 
Auto Loans In 7 Steps

Word Count:
667

Summary:
Is it possible to own a new car, even if you don't have $20,000 to spend?  Absolutely.  Auto loans make car ownership an affordable reality, and virtually anyone can arrange for financing.  If you have sufficient income and a good credit rating, you will be able to choose from a selection of auto loans.

Step 1
Choose your wheels before arranging your loan.  The bank or finance company will want to know what you're buying, and how much you'll need to borrow.  Shop around b...


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Article Body:
Is it possible to own a new car, even if you don't have $20,000 to spend?  Absolutely.  Auto loans make car ownership an affordable reality, and virtually anyone can arrange for financing.  If you have sufficient income and a good credit rating, you will be able to choose from a selection of auto loans.

Step 1
Choose your wheels before arranging your loan.  The bank or finance company will want to know what you're buying, and how much you'll need to borrow.  Shop around by checking automotive websites and visiting local car dealers.  Once you know exactly what you want to buy, you can negotiate a price with the seller.  With price in hand, you'll find it easier and faster to secure your financing.

Step 2
Shop around for the best interest rates.  There are online websites like http://turkiyespot.com/Bankrate.com</a> that publish surveys and polls of loan rates across the United States.  The rates of auto loans will fluctuate with the market, and they definitely differ from lender to lender.  Shop around to find the lowest rate and best lending terms.  Checking with local banks, credit unions and even car dealers can save you money.

Step 3
Purchasing a new car is a costly, and sometimes risky business.  Auto loans involve a lot of money, and you need to prevent any possibility of getting ripped off.  Check with used car values to see how much your current vehicle is worth.  Knowing your car's value will help you to get the most money for your trade-in.   Consult a black book or research online to find the current market value of your vehicle.

Step 4
Determine how much you're able to spend as your down payment.  Providing cash up front can help you to secure an auto loan, as it proves to the lender that you're responsible and willing to repay.  It also decreases the amount of principle and interest you'll pay throughout the term of your loan.  Some lenders require a down payment of twenty percent of the vehicle price.  Remember that the value of your current vehicle may be applied toward your down payment. 

Step 5
Once you know the type of car you're buying, the purchase price, the available rates and the amount of down payment you'll need, it's time to shop for a lender.  Be careful in this step, as there are many shady lenders who are quick to hand out cash in exchange for very steep repayment amounts.  Compare interest rates, the loan term (two years, three years, etc), monthly payment amounts and, of course, how much you're able to spend.  These factors will all help to determine your choice of lenders. 

Step 6
Don't panic if you don't qualify with the first lender you choose.  There are literally endless auto loan options available to you.  Just be sure that you're not living beyond your means.  You may need to save a little more to come up with a bigger down payment, or simply choose a less expensive car. 

Step 7
It's easy to create a lousy credit rating, and the poor rating can hound you for a long time.  If your credit rating is keeping you from securing an auto loan, you can begin working to rebuild it.  Pay your bills on time, and clear up any outstanding debts.  After six months, you'll be able to reapply for a new credit rating.  If this is not an option, you can choose to look into bad credit auto loans.  Insurance companies that offer bad credit loans don't require their customers to submit their credit histories, so it is possible to secure an auto loan despite poor credit.  However, remember that the financer will view you as a risk, and you will pay higher rates. 

Auto loans make it possible for virtually anyone to buy a new car.  It's why you see so many new vehicles on the road today.  If you think you can't afford the car of your dreams, shop around.  You might be surprised at what you find.