How to Get Good Financing on a New Vehicle

Financing a new car or truck is a huge part of buying any new vehicle. Dealerships know this. As you can see when browsing a website such as,most dealerships offer financing options for their customers. However, there are many other financing options available if you take the time to research them out first. Following are three tips that can help you obtain the best financing possible:

  • Figure out your monthly budget first.
  • Shop around for the best interest rate.
  • Use your prequalified loan to help negotiate a better deal.

Monthly Budget

Before you ever begin to look at cars, you should take time to figure out your finances. Analyze your monthly expenses and income. Using those figures, determine a monthly amount that you would feel comfortable dedicating to a car payment. Once you set that figure, avoid the temptation to creep upward on the amount. Rather, find a vehicle that will allow you to stay within your budgeted amount.

Interest Rates

There are many different interest rates available for a new car buyer. Dealerships may offer 0% financing, but it is important to remember that they have to make their money somewhere. Therefore, they might increase the prices of a vehicle in order to deliver 0% financing. Before you visit the dealership, check with your bank or credit union and see what rates they can offer. Even if you don’t know the exact price of the vehicle you will buy, you can still get prequalified for a loan. The prequalification will tell you how much you can spend; but, you don’t need to use it all.


Once you have a prequalified loan, you have increased your personal negotiation power. In some cases, the prequalified loan can act like cash to a dealership. So, before you start talking financing with a sales rep, negotiate a price based on a cash basis. You might even be able to get a price quote online from a site such as Once you have a price quote, it is time to start discussions about financing. Show the rep the prequalified loan, and ask if the dealership can beat that offer. If they can, great; you don’t have to use the prequalified loan. If they can’t, you can complete the sale without their financing.

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