Where to get the money
By Bankrate.com



Seven out of 10 new cars and trucks are financed, and you can also finance the purchase of a used car. But to do it right, you must be prepared before and after you reach the car lot.
You can get an auto loan from a bank, credit union or other financial institution. You can have these loans approved before you ever hit the showroom.

You can also get financing through the dealer or from the auto manufacturer. There will be occasions when a dealer will actually give you the best deal. Unfortunately, those occasions are not predictable (despite endless "must sell," "lowest rates possible" and "no money down" advertising by dealers) and the only way to be sure is by comparison shopping.

One other choice is a home equity loan. You'll get a good interest rate and the payments could be tax deductible. But be sure such a loan won't leave you in any danger of losing your home.
Know your numbersInterest rates on new cars are lower than on used vehicles. And, in general, new cars can be financed over longer terms than used ones. This equation can make a new car cheaper than a used one in many cases.

Not all the numbers in your deal will be locked in before you buy, especially if you go with dealer/manufacturer financing. The interest rate you pay can vary, and so can the down payment and other details, such as the value of your trade-in or the length of the loan you take. You have to decide

Don't let one number dominate you. For example, a really low down payment is not by itself a guarantee of a good deal. You need to consider all the numbers together to know what sort of deal you're getting.