People interested in buying cars can spend hours reading reviews of their favorite car models to see what suits them best. A report taken from Auto Trader Group states that car buyers spend at least over 11 hours online collecting information about cars they’re interested in. Moreover, they spend researching cars for an average of three and a half hours offline.

On the other hand, when it comes to getting a car loan, the research and the interest simply seem to take a backseat. Car buyers generally do not give too much thought to anything related to car loans except for when the amount paid as monthly repayment is due. This can be a cause for relief among car dealers as their profit margins have been getting fatter due to customers being unaware of the actual costs of vehicles. Ignoring the finer details of auto finance can end up costing you a huge deal.

Here are a few auto financing tips to help you select a good car loan.

1. Get pre-approval
Ask any auto expert for payment advice, as they may have the best knowledge about this. It helps to know your budget beforehand. This, in turn, will determine the total amount you can borrow. Having a pre-approval will give you an upper hand while negotiating with car dealers.

In case you choose to opt for auto financing from the dealership, your pre-approved loan can still be used as a bargaining advantage during negotiations of your loan term and interest rate among many other factors.

2. Go for the lowest interest loan option
Once you know your credit score is good, you can have a wide range of interest rates to select a loan on or even negotiate to a lower one. However, make sure you negotiate. Lowest interest options make it easier for you to repay your loan. Successfully repaying a car loan on time can help you get a better credit score for any future loans as well.

3. Treat your trade-in as a separate transaction
Purchasing a car through auto financing involves three aspects which are the loan, the new car, and selling of the old car. While selling off your old car to the same dealer you are buying your new car from is highly convenient, it is better to make the sale separately. Doing so will get you a better price for the vehicle. Even if you sell the old car to the same dealer, do not have it bundled as part of the new car purchase.

4. Make a substantial down payment
The larger your down payment, the more faith your lender will have in you. This can definitely put you in a better position to request a better loan deal or lower fees. Plus, it will help you save on monthly interest as you will have a lower loan balance on your auto loan.