How to Get Your Own New Car Financing

Explore several alternatives for new car financing besides the dealers' recommendations.

Explore several alternatives for new car financing besides the dealers' recommendations.

You want to buy a new car, but how are you going to pay for it? Unless you and your significant other have a stockpile of cash, you are likely going to finance the purchase of a new car. The dealership will work with you on obtaining a loan with either banks in which they have relationships or the car manufacturer. However, you can look on your own for new car financing, too. This way you can compare the dealers’ findings to your own. You can also obtain pre-approval before visiting the dealership to make the process even more painless.

Call each bank you currently have accounts with to inquire about new car financing loans. Ask a representative about rates, loan terms, eligibility and how to apply. The bank down the street may offer you the best loan.

Check with your or your significant other’s human resources department to see if you have access to a credit union though either of your employers. You may need to open an account to qualify for new car financing through a credit union. Credit unions are similar to banks, but you usually need access to them through an employer or union labor group.

Visit web sites such as Bankrate, My Auto Loan or Cars Direct that provide new car loan rates from several banks. Answer questions online about where you are located, the number of months you need to repay the loan and if the car is new or used. Click a “Search” or “Submit” button to display quotes that may be available to you. Contact each of the lenders directly to inquire about applying.

Apply for a loan through the lender with the best rates and terms. You can apply directly on their website or by telephone, with a representative. After providing information about you and your spouse’s income (if jointly applying), the lender will check your credit score and make a determination. They will notify you in writing of the loan offer.

Borrow from a private lender or family member. If you know someone or some place with cash to lend, ask if they would consider lending you money to finance a new car. Make sure you put the terms of the loan in writing, including interest totals and the length of loan payments.


  • Car loans can be refinanced if your credit or income situation changes for the better.


  • Poor credit scores or a lack of credit may inhibit you from getting the best loan rates or special financing through the dealer.

About the Author

Francine Richards is a licensed multi-state insurance agent with years of human resources and insurance industry experience. Her work has appeared on Blue Cross Blue Shield websites and newsletters, the Houston Chronicle and The Nest. Richards holds a Bachelor of Arts in communications from the University of Maryland.

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