After you have decided to buy your car it is a tedious task to identify the lender who is going to give you the loan. There are many lenders available in the market and every body might be interested in giving you a loan. It is up to you to decide which lender to choose based on certain facts.

You have to do a little research on the interest rates that is being offered to you. You can get a car loan from a dealership or from a bank or other lender on your own. Usually what you get from a dealership should be dealt with carefully otherwise you will be taken for a ride!

It is always better to get a non-obligation loan from an external party and then approach the dealer for a car loan. With this option you have the power to negotiate the interest rates and the down payments that are to be made in purchasing the car of your choice.

The offers from the car manufacturers and the dealers are so many that you might get confused over the choices available in front of you.

If you are not smart enough you might end up signing a contract in which you might have second thoughts. This is how most of the people sign the contract. They end up buying something that they have not thought of. They realize this only after they come out of the dealership. If this should not be the case, you have to just walk out if you have second thoughts over any deal.

Take time to evaluate and do not hurry to finish it off then and there. Only the sales person has a target for that month and not you.

Sometimes you might be offered a loan without any interest for the first year of the loan. In such cases you have to be careful to evaluate what is being offered to you. They might hike the interest rate for the next four years and cover what they lost in the first year.

If you are offered a cash rebate or a low interest rate then you have to calculate the advantage of both of them and then select one that is more profitable to you. While calculating the interest rate, note that it is the Annual Percentage Rate and not the monthly rate.

You have to compare the APR for the different car loans offered by different lenders. Do not focus on the monthly payments but focus on the APRs. While negotiating, keep in mind that you negotiate the interest rate and not the monthly payment that you have to pay.

If you need to decide whether to take a loan with low interest or take up a rebate along with a high interest loan, you have to do the calculations seriously. Each of them might be profitable in some cases.

If you are weak in mathematics then you can use the online calculators available in websites like bankrates.com. These calculators can be used to find out which one if profitable to you.

You have to look for the loans available before you enter the dealership. If you have an Internet connection then you can easily look for a car loan. There are companies that offer loans online. You can use the Internet to compare the different options available and then decide the one that is profitable.