 TITLE: How to Get a Car Loan CONTENT: Shopping for Auto Loans\n-----------------------\nJust as you comparison shop for the best price on the vehicle you want to buy, it's important to shop around for the best car loan deal because that can help you secure the best interest rates.\nWhen shopping for a car, it is also common for auto dealers to submit applications to multiple lenders to help you find the lowest interest rate and favorable terms. You can also shop around for an auto loan on your own. Keeping those applications within a short period of time will minimize the number of hard inquiries. Every time you apply for credit, a hard inquiry appears on your credit report, and too many hard inquiries can negatively affect credit scores. Credit scoring models like FICO usually group similar hard inquiries that occur in a short time frame, treating them as a single inquiry, which reduces their impact on credit scores.\nMultiple sources can provide you with an auto loan, including:\n*   **Banks and credit unions**: Getting a loan from a financial institution means you can secure your financing before you go car shopping, so you'll know exactly how much the loan—and the vehicle—will cost you. Once you've found the car you want, you can use the loan to purchase the car from the dealer.\n*   **Car dealers**: You can also apply for and secure financing through the dealership where you buy the car. The dealer may hold on to the loan or sell it to a bank, finance company or credit union. Financing through a dealer can be convenient, may provide you with access to special deals and incentives, and may be easier to qualify for than a loan from your bank.\n*   **Online lenders**: A number of online lenders provide auto loans. These loans work similarly to direct lending from a bank or credit union. Some consolidating websites allow you to get quotes from multiple lenders by completing a single online form. END