Checklist for Getting Car Loan

1) ESTABLISH YOUR BUDGET

Take your net (after tax) income and deduct all of your fixed expenses, and savings or investment deposits. Then deduct your food, gas, entertainment and other flexible expenditures. See how much is left over to work with.

As a general rule, a maximum of 20 percent of your income should go towards your auto payment.

Don't forget you'll have other expenses with your car that you'll need to add into the equation: license, registration and title; insurance; monthly maintenance, etc.

2) DETERMINE YOUR FINANCING OPTIONS. Consider:

a. Banks

b. Credit unions

c. Car lot and car company financing.

Note: watch the "We Finance Here" lots on their finance charges and interest rates!

It's a good idea to get on the Internet and see what incentives the auto companies have for certain buyers and vehicles. There are often rebates or specials available.

d. Family/friends. Will someone you know loan you the money?

e. Credit card(s). These often have a higher interest rate, but are easier to qualify for

f. Home equity loan or mortgage refinance. (See our other articles about morgage loans.)

3) DO YOUR RESEARCH. Ask yourself these questions:

What type of vehicle is best?

What kind of gas mileage does the car get?

How many passengers will it hold?

How will you use the car or truck?

What are the safety ratings of this vehicle?

Has this car been in an accident or flood? You can go to CarFax.com for vehicle history reports on any vehicle.

4) VISIT CAR DEALERS and shop, shop, shop.

Compare what they have to offer.

See how the staff members treat you.

Test drive as many cars as you wish.

Ultimately you'll choose your car, negotiate for the best price and terms and sign the papers.

Finally get the keys and drive home in your new vehicle!

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