How to Get Financing for a Car

Whether you are buying a new or used automobile, obtaining car financing is one of the most important steps in the purchasing process. Car loans are available through banks, credit unions and dealerships, but selecting the type of financing that is right for you requires some research.

• Gather necessary documents before looking for auto loans. You will need recent bank statements, payroll stubs, your social security number, current vehicle insurance information and a driver's license or other type of identification. Knowing your credit rating and FICO score is helpful as well.


• Contact your bank or credit union. Since you already have a relationship with this type of institution, you may be able to obtain a lower interest rate.


• Look for car loans on the Internet. Type, "auto financing" into your search engine. Some websites compile financing and rate information from multiple banks. This allows you to get the lowest possible rate without spending time scouring different websites.


• Consider financing your car through an auto dealership. If you are purchasing a new or used car through a dealership, find out about their financing plans. A number of dealerships feature low interest rates in order to increase sales.


• Compare interest rates on the Internet. Once you have some quotes, see how these rates compare by visiting financial sites online. This will ensure you receive a fair rate for your auto loan.


• Realize that even those with poor credit have vehicle financing options. However, people with a positive credit rating generally receive lower interest rates.