As many as 70% of the new cars purchased today are done so through auto loans, and even a large number of used cars are financed as well. In order to get the best possible deal however, there are some things you have to keep in mind both before and after the purchase has been made. In most cases, you will be able to get auto loans from lending institutions such as banks and credit unions. Applying for auto loans with credit unions will generally get you much more affordable rates, and you may get even better loan terms if you can get the loan approved prior to buying the car.

In some cases, car dealers and even the car manufacturer may offer auto loans. While auto loans from dealers and manufacturers will often cost you a lot more money, there are instances wherein they will actually be able to offer you a better deal.

Another way to purchase a car is by securing an auto loan against the equity that you have built up in your home. Loans secured in this manner will usually come with lower interest rates, and any payments that you make may even be tax deductible. You will want to be careful however that this type of loan will not put your home ownership in jeopardy.

When making the decision to purchase other a new car or a used one, you should be aware that interest rates for new cars are usually lower than for used cars. Auto loans for the purchase of a new car will also generally have longer terms. For these reasons, opting for a new car instead of a used one can actually save you more money in the long run.

Keep in mind that the costs of auto loans will not necessarily remain constant for the duration of the loan term. You may find that the interest rates will increase at some point, and you may even have to deal with a higher down payment, a lower trade in value for your car, and even slightly different loan terms.

While you would understandably want to pay the lowest down payment possible, do not let this factor become the primary consideration in securing auto loans. You will have to look at all of the details of the auto loans in order to make sure that you are getting the best possible deal for your money. Keep in mind that many auto dealers will offer you a low down payment in exchange for a higher monthly rate, which may end up costing you more money in the long run.