The vast majority of Americans, close to 90% actually, seek some sort of financing when it comes to purchasing a new car. The biggest and most major hurdle when you’re in the car financing game is, of course, getting credit approval in a timely and stress-free manner. At the end of the day, very few of us can actually walk into a car dealership and point and say “I want that one”, pay cash or with a credit card for the whole amount, and just drive off the lot.

So, knowing what one’s options are in terms of finance for your car purchase are quite critical.

Having a decent to good credit history is a key factor in successfully getting car financing at decent rates and in the range (dollar amount) that you are looking for. And of course a great credit score gives you all that more bargaining power with your company of choice! Now there’s a good reason to build your credit history! Because the higher the credit rating you can present to the company or bank you’re seeking to get a car loan from, the better the rate of interest and terms, including time to pay back, that you can win yourself. This means you will get a longer time and pay out less over the life of your car loan.

You can go to your bank, a credit union, or finance through the dealer you are purchasing your new car from, but there are actually some other options as well, that you might want to consider before committing to your car finance methodology or leaving it all in the hands of the dealership. For one, auto loan companies offer a range of loan types, have specialized agents who can field your queries and offer insight into the process, and different ones cater to different types of consumers – and their level of credit. There are a number of online auto loan services that offer assistance with getting the best possible car loan. Most sites have loan calculators and questionnaires that help you figure out the numbers. And they offer comparisons between different auto loan companies so you know what you’re getting into. It makes a lot of sense to do your own research, check out pre-approvals that can be applied for and completed online, before you walk into your dealership and pick out the car you’re interested in.