When shopping for a car, it’s hard not to get caught up in the process of finding a car you just “have” to have and going through the dealership to be approved for financing. It’s just the way things are done. Right? Well, not so fast. If you want to save money on car credit, you’ll do your shopping ahead of time. Oh, not just on the car, but on the financing too.

Tons of consumers leave money on the table when they get their financing through the dealership. They prefer the convenience of one-stop shopping for both the car and the credit. But, if you are the prudent shopper and want to save money, you could do better to shop around for better interest rates and deals. That’s not to say that you will always get better financing by shopping around, but at least you would know for sure. There are several factors that go into car credit financing offers including:

• Brand New Cars
• Used Cars
• Personal Credit Score (FICO)
• Amount of LoanValue of the Car VS Loan Requested
• Projected Depreciation Rate of car
• Down Payment Offered

So, now the question becomes where do you go to shop for car credit options? The first answer is to try the bank or credit union that you use currently. If you have a good history with them, they can most likely offer you the best terms. If your credit is not stellar, a bank may not be an option. In cases like that, there are finance companies in the marketplace that will offer you, even compete for your business. The finance interest rates will be higher than the traditional bank, but at least you are given the opportunity to purchase a car with financing and a chance to improve your credit scores.

By doing your research ahead of time, you will know if the dealer financing is a good deal or not. You will be able to negotiate the price of the car instead of the monthly payments. This will save you money in the long run, putting more cash in your pocket.