DON’T apply
for an auto loan without knowing your credit rating first. The interest rates
that a bank gives will depend largely on the status of your credit score. This
has an added negative effect because applying for an auto loan with a bad credit
rating and having your application rejected will effectively ruin your standing
with that auto loan company, along with your chances of getting a loan with them
again. 

DO an
extensive assessment of your credit report and try to find out if there are past
mistakes that may affect the chances of getting a good rate. This has an added
benefit of allowing you to see and correct errors or issues, and will let you
catch any signs of fraud or identity theft.   

DON’T
overspend. For many car buyers, it is very tempting to spend outside of your
intended budget when you are already in front of all the gorgeous cars and
accessories at the dealership. Car dealers know this, that is why they will
sometimes offer a relatively low price and when you bit it and finally go to the
showroom, they will tempt you with lots of extra features and accessories. Some
of the really good ones can even influence you into buying a different, more
expensive car. 

DO set a
budget for the car you want to buy. Be very strict and unflinching in your
budget, especially if your current cash flow is not very flexible. Remember that
you can buy and install accessories and extra features later when you have extra
money to spend. You can also have a go for
guaranteed car loans. 

DON’T go to
the showroom or dealership without first doing some research on the current
prices and interest rates being offered in the marketplace. It is important to
know if the car dealer is offering you a competitive rate. 

DO some
research on the internet. There are lots of websites these days that give you
the ability to compare prices and interest rates between various car dealerships
with only a few clicks of your mouse. This is an important service that you
should never ignore especially considering how accessible the information is. 

DON’T sign
any documents or close any deals when you feel like the dealership staff is
rushing or putting you under pressure. People who are under pressure tend to
make bad financial decisions.  

DO pay
attention to your comfort zone. If you feel like the dealership staff is
coercing you or putting you under pressure, walk away from the deal. Car dealers
usually try to take advantage of buyers’ feelings of anxiety and try to get you
into a position where you want to do anything just to get everything over with,
then they’ll offer you an expensive car with high interest rates.