To save as much as several thousand dollars in finance charges, you could pay for the car in cash or make a large down payment. Always get the shortest term loan possible as this will lower your interest rate. Make certain to get a rate quote (or pre-approved loan) from your bank or credit union before seeking dealer financing. You can save as much as $1,000 in finance charges by shopping for the cheapest loan. Make certain to consider the dollar difference between low-rate financing and a lower sale price. Remember that getting zero or low-rate financing from a dealer may prevent you from getting a rebate. For more ways to save, see “66 Ways to Save Money” at www.66ways.org, the original source for this answer.

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