Shop till they drop
When thinking about buying a new car it's important to consider how you are going to finance it. Dealing with the car loan debt later on, could possibly make owning a new car a negative experience. A little patience now, could save you a lot of disappointment and cash later!
Car financing or auto loans, depend largely on how good your credit is and how much cash down payment you have. Having a good trade-in, (your current car) could also increase your odds of getting a less expensive car loan. The less you have to finance, the better off you will be.
One useful tool for finding the best deal on a car loan is offered by Bankrate. This tool will allow you to put in either the name of your state and town or by zip code, while it searches financial institutions in your area. It will find comparative interest rates on auto loans from financial institutions on how much they will charge on financing your new car.
I was able to find a 2% difference between two financial institutions in my area, right off the bat. This may not sound like a lot, but when financed over 60 months, that small 2% can add up to quite a bit. Some credit unions offer some of the best rates, so another thing to consider is possibly opening a new account, in the hopes of getting a good deal. Just ask them if it will help.
But don't stop there. Keep shopping around and let banks, and even the dealership that you are thinking of buying the car at, know what the best interest rate you have found on a loan, so far. Ask the dealership if they can come down on the price of the car, so that it will meet your expectations of a low interest rate. Let the car salesman know you are going to shop for the best interest rate on a car loan, before you buy, and not any sooner.