1. Get the Financing Up Front

• A preapproved auto loan is like bargaining with cash—you're in a better position to talk price with the seller. Be sure your insurance coverage is intact—without it, you may not qualify for a loan.
• Estimate a down payment and monthly payment reasonable for you. Some advisors recommend paying 20% down. Avoid monthly payments larger than 20% of the money you have left each month after paying all other expenses. Use our calculators.
• Monthly payments are only the beginning. Consider the long-term cost.
• Dealers often offer low-rate deals, but with strings attached. Compare the advantage of taking the rebate instead of a lower rate.

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