The key is to shop around. It does not take days to find a good loan. You should not have to spend more than an hour or two to locate your best resource, apply, and get approval. Here are the most common places to find new car loans.

Online lenders.
Increasing numbers of people are turning to online lenders for their new car financing. The prime advantage to using an Internet lender is that they usually offer the lowest interest rates on auto loans and the application process takes only minutes. Good online lenders do not charge an application fee. Most are able to process your application in minutes and tell you immediately if you qualify and the amount for which you have qualified. You will also have online access to your loan account once it's established.

Your local credit union.
This can be a great option for new car financing. Getting an new car financing through your credit union can be nice because you get to deal face to face with a real live human being. Also, a credit union can deduct your loan payments directly from your pay check. The downside to the credit union is you may have to actually go there to apply for the new car financing and fill out the paper work. Plus your credit union is limited in the amount of credit they can offer you. If later you have an emergency and need a personal loan, you may not be able to get that from them if you have already fully utilized your credit with them.

Your local bank.
Some people like this option, but you will almost certainly pay a higher interest rate than if you were to use an online lender or a credit union. However, if you want to deal with someone in your local community and don't mind paying more for your new car financing, then this may be an attractive option for you. Remember, shop around and do what works best for you. Also, remember that a bank is a business and their rates may be negotiable. If you have an established relationship with your bank try, to negotiate a better interest rate for your car financing - they might go for it.

Auto Dealerships.
This should be your last option for new car financing. Auto dealerships spend millions of dollars each year to try to convince you to finance your new car with them. You've probably seen ads for 0% financing, or other really low interest rates. Don't believe it! If an auto dealership is trying to convince you that they can offer you the best rate and terms on your new car financing then make them prove it to you. Never agree to financing terms based on something they scratch on a piece of paper or agree to verbally. These terms have a way of magically inflating once it is time to sign. Ask the dealer for a fully filled out finance contract with all the spaces filled in. Compare the dealer rates with your other rate quotes. Then choose the financing option that is best for you.

Are you in the process of buying a car? Are you nervous about financing? If you don’t know your way around the world of automobile financing, you have every reason to be nervous. There’s so much to know! And how do you know you’re getting the best deal if you don’t understand the terms? Don’t worry – our purpose here is to bring the unknown into the realm of the known, to bring the unexplained into the realm of the explained, and to bring the confusion into the realm of the understood. Sit back, read on, and learn.

A new car is second only to a home as the most expensive purchase many consumers make. According to the National Automobile Dealers Association, the average price of a new car sold in the United States as of June 1998 was $23,480. That's why it's important to know how to make a smart deal.

Guidelines for negotiating the car price can be found elsewhere, but we want to share some helpful tips on getting that vehicle financed at the best rates and terms for you.

No down payment is required on the direct auto loans offered by Capital One and Eloan. If you have poor credit, however, a down-payment can probably help you secure a lower rate - if not the loan itself.

It means owing more on a car than the vehicle is worth. If you're buying brand new, you'll be upside down in your loan for some months at the start of the loan. If your car is totalled, you'll owe more on the vehicle than the insurance company will pay your for it. Gap insurance is a special type of auto insurance policy that covers this difference.