Unless you are independently wealthy, you will probably need to secure financing to buy a car. And, if you’re anything like me, this is not something they taught you how to do in school. Just the mention of APRs and financing deals makes my mind go a little fuzzy, but at some point in life, you have to take control of these things. If you don’t, you will get a crappy deal care of some pushy car salesman, and you’ll be paying for that car far longer than you’d care to.

So, here are some quick tips on Life Skill They Didn’t Teach You in School #571: How to Get a Car Loan:

1. Get a free credit report. Your credit score is used to determine the interest rate you will pay on your car loan. Know your score before you shop for financing. The only website authorized to give you a free credit report is AnnualCreditReport.com.
2. Start with banks and online lenders. Secure financing from a bank or online lender before you negotiate financing with the car dealer. You’re liable to get a better deal from the bank, and having your financing in place before you hit the lot makes you one seriously empowered buyer.
3. Get three quotes. Before signing on the dotted line, shop around. Get a minimum of three quotes before applying for a loan. The big online lenders include Capital One Auto Finance, HSBC Auto Loans and E-Loan Auto Loans.
4. Read the fine print. Ask whether or not there are any penalties associated with your loan. Are there any hidden charges, or can you be penalized for paying the loan off early?

Need more of the nitty gritty on securing that car loan? Check out Mahalo’s guide to How to Get a Car Loan.

Image: Creative Commons photo by Rick Hall