If you are thinking of getting an auto loan, the last thing you should ever do is simply walk into a financial office/bank or ask a lender for money. This comes much later.

Today, one can get the best rates for an auto loan by doing some finger walking. Go to your computer and search for used car auto loans. But make sure you have a copy of your credit score and the Vehicle identification number (VIN) with you. This number is etched on the right hand side of your car or any of your car’s legal paper work should have it. If you have already looked at a car and you want to buy, make sure you have the model, year and VIN of that car too.

If you have never applied for a credit report, you will need to get one. No institution will lend you money without this report. Each individual in the US is entitled to one free copy of their credit report each year. Some lenders will automatically give you a free report as part of the loan deal. Once you get your report, you need to see where you stand. If you have a low score, the chances of getting a loan are slim and even if you get one, the interest rates may be high. So understand your credit report and check to make sure there are no errors in it. If there are, get them corrected. The higher the score the better the chances are of not only getting the loan but also decent rates.

Once online, start writing down the quotes you get from each lender. Get the interest rates and the duration of the loan. Once you have compiled a list of about 10-15 auto lenders, sit down and compare them. Do not go for the cheapest. Look at the duration of the loan, interest rates and any other hidden fees. Once satisfied with the one you want, go back to the site and read the fine prints to make sure that what type of penalty exists when missing a single payment.

Do not just rely on the Internet to search for the best car loan. Go and check out some of the local banks and financial lenders and see what they have to offer. You will again need the same information that you required for your Internet search. Once you have the other rates, try and negotiate the best rates for you. And always read the fine prints.

Car dealers know that you’ve probably been turned down before so they feel they have the upper hand…