- 1). Determine how much money you can afford to spend on a vehicle by researching vehicles you are interested in and using a loan calculator to estimate what your monthly payments would be. The Internet is a valuable tool for this preliminary work. Remember that the loan calculator is only an estimate, so use that as a general guideline rather than counting on it to be exactly what you will pay. Your actual monthly payment may be less or more than the calculator estimate. Consider purchasing an energy-efficient vehicle as lenders are offering slightly lower interest rates on vehicles with good mileage, according to online financial resource Bankrate.
- 2). Calculate how much money you can afford to put down on your vehicle purchase. The more you can put down on your vehicle, the better your chances of getting a lower interest rate. A down payment of 20 percent of the purchase price is a good guideline to follow, according to online auto resource Edmunds.
- 3). Shop around at various banks and credit unions. Make appointments with loan officers to make sure you are able to negotiate your deal directly. For the sake of comparison, you should apply for at least two online auto loan quotes. This will give you some solid numbers to use when negotiating with banks and credit unions.
- 4). Consider lenders that are offering auto loan promotions. It is not unusual for lenders to try to entice new borrowers with low rates on auto loans. Use that to your advantage and make those new vendors part of the list of financial institutions you visit to shop for your loan.
- 5). Use lenders against one another. If you are speaking to a lender who is not giving you a lower rate than other lenders have given you, show him the offers you have received and challenge him to beat those offers. Competition among lenders can work in your favor.
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