 TITLE: How Does Financing a Car Work? CONTENT: Who Offers Car Financing?\n-------------------------\nYou can get auto financing through a variety of financial institutions. Banks and credit unions are common places to get car loans. If you have a general idea how much the car you want will cost, you can contact your bank or credit union and get preapproval for a loan. They'll give you a letter confirming the amount you can borrow and the interest rate. Just be aware interest rates may change a bit when you actually purchase the car and the bank or credit union runs a complete credit check to finalize your loan approval.\nYou can also find online auto lenders and online marketplaces that can match you with the best car loan for your needs. These sites typically let you compare offers from several lenders to find the one that works for you.\nAnother place to get financing is the auto dealership itself. Dealerships may arrange financing for you through outside lenders; you'll apply for a loan at the dealership and get approval on the spot. This may cost a bit more than getting a loan on your own, since dealerships generally build some profit for themselves into the cost.\nSome dealerships offer their own in-house financing. Known as \"buy here, pay here\" financing, this is something to avoid if at all possible. These loans are designed for people with bad credit, so interest rates and down payment requirements tend to be very high.\nIf you wait until you've fallen in love with a particular car to apply for financing at the dealership, you may be more likely to accept less-than-ideal loan terms. That's why getting preapproved for an auto loan on your own before you visit the dealership can be a smart idea. Armed with your preapproved loan terms, you can negotiate for better terms and get the right auto loan for your needs. END