- Make sure that the car you plan to purchase has undergone a complete checkup. You do not want to go through the process of securing a loan and paying it only to end up with something that may not outlive the loan. Always perform a test drive and make a thorough inspection before making a deal. This step is very important especially if you are buying from a private party which, unlike in a dealership, does not usually have a warranty clause for the deal. If you are buying from a car dealer, ask for an extended warranty with low rate.
- Check your credit report to find out if you are qualified to apply for a car loan with the bank. Know your credit standing before you apply for a used car loan. Inquire from different banks and financing agencies what car loan packages are available and what other options are offered. Interest rates are different among banks but generally, the basis for approving your loan falls on your credit rating.