Car Insurance

# In deciding on a lending agency from which to borrow money to finance your car, you should obtain quotes from a number of agencies about their percentage rates and the total cost of the loan.

# Car dealers may also offer financing plans. Carefully compare these plans with others you may be considering.

# Try to keep the length of the loan as short as possible. A three-year loan with the same rate of interest costs you less overall than a four or five year loan. While you need to keep the payment within your budget each month, you also need to look at your total cost.

# Check with credit unions, associations, auto clubs, banks, or insurance companies to compare their interest rates and the total cost of loans.

# Ask if you will have to pay any fees if you payoff the loan early.

# Do not sign a contract before reading it very carefully and understanding all its provisions. If a clause concerns you, ask to have it explained, or if necessary, changed. Double check all the figures to make sure they coincide with what you have agreed upon.

# Consider getting pre-approval for a loan once you have chosen your lending agency. Some agencies will issue you a check “not to exceed” your pre-approved amount, allowing you to use the check like cash when you go car shopping.