 TITLE: 10 Things First-Time Car Buyers Need to Know CONTENT: 3\\. Explore Your Financing and Purchasing Options\n-------------------------------------------------\nWhen you've narrowed down your dream car list, it's time to think about how you'll finance the purchase. Unless you've saved up enough money to buy a car outright with cash, you'll need an auto loan to finance the purchase. According to Experian's State of the Automotive Finance Market from the fourth quarter of 2019, 84.6% of new cars and 54.6% of used cars were financed.\nYou can get financing through an auto dealership or through a third party such as a bank or credit union. However, because auto dealers will tack on additional fees for handling the loan, you can often get better terms from a bank or credit union. Getting preapproved for a loan through a third-party lender can also give you negotiating power to see if the dealer will match the loan terms.\nIf you're applying to multiple lenders to get the best loan terms, be sure to apply to all of them within a short time period. Applications made within a 14- to 45-day period (depending on the scoring model) will only count as one hard inquiry in your credit score. Once you're approved, the lender will give you proof of the loan terms and amount to show the dealership.\nWhen it's time to buy, your options for where and how to do it are greater than ever before. Depending on whether you're seeking a new or used car, you can buy from dealerships, dealership websites, online car-buying sites or private sellers. Some services will even have the car delivered right to your door. END