How to Save Money on Your Auto Loan

With the economy still hurting, and people without work, buying a new car is often way in the back of your mind. Having said this, there are many great deals out there, as the auto makers try to recover from bankruptcy, and get rid of the cars which are left over from the hundreds of closed dealerships around the country. If you are looking to buy a new or used vehicle, there probably is not a better time than today. Here are a 4 ways to save money on your Auto loan and car purchase, and make sure the loan is as affordable as possible:

#1 Pay as much money as you can in cash. The larger the down payment, the smaller your monthly payments will be. Often times if you put a large down payment down, you can shorten the length of the loan, thus also reducing the interest rate quite significantly.

#2 Pay close attention to both the price you would pay in normal circumstances, and that which you would pay with a low rate loan. Often times you will not be eligible for the many discounts provided by the dealership and car company should you opt for the low rate loan special.

#3 Shop around for a bank loan, before even considering getting financing from the dealership. Finance charges add up, and often times you will pay several hundred dollars more with the dealership financing option.

#4 You Are in Control. Go into the dealership, tell them the exact price you are willing to pay, and don't budge. Let them know you are not going to budge, and that you would rather forget about buying the vehicle altogether than pay even one more cent. Time are tough for car companies. Dealers have lots of room to bargain with.

Remember to do your homework, checking out the current rates available, as well as the average sale price of the vehicle you are interest in. When you go into the dealership, you want them to know that you are in control, and are just as knowledgeable as they are.