Get your loan first, before you get the car.

When you are contemplating the purchase of a new or used car, you may be eager to simply get to a lot and look at what is available immediately.

However, it pays to slow down your search a bit and get a quote for an auto loan before you set foot on the car lot. Why? Here are four great reasons to get your auto loan quote before you shop.

It Lets You Know What You Can Afford

Cars are expensive. Even a modest used car is still going to cost you a few thousand dollars and few people can walk onto the lot and pay cash up front for one. If you know you are going to have to borrow money to purchase a car, getting a quote shows exactly how much you can borrow and on what terms. This knowledge will shape how you shop for cars because you will know exactly what you can fit into your budget, as opposed to what your salesman might be pressuring you to consider at the dealership.

It Focuses Your Shopping

Once you have a number, it allows you to focus on the car you need and not get sucked into the trap of letting your emotions dictate what you choose. Sure, a Lamborghini would be fun to drive, right up until you needed to seat more than two people in your car or put some groceries in the back. Knowing what you can really afford helps you find the car you really need, and you might well be surprised by what you can get.

When buying a car, the loan comes first.

You Can Find The Best Deal

Many people never think of auto loans as their own separate product. Yet, that is exactly what they are. A car and an auto loan are like milk and cereal; they go together, as a rule, but they do not have to be sold together. There are plenty of lenders out there, from local credit unions to the major banks, and you should get as many quotes as you can to look for the best terms. Pay special attention to interest rates and terms; the interest is the price you pay to borrow the money, so the lower the rate, the better the price. Remember that the longer the term, the more interest you pay over the course of the loan.

It Cuts Down On Haggling

Another useful thing about getting your financing first is that it cuts out a lot of the haggling when you go to buy a car. Keep in mind that a salesperson’s job, ideally, is to sell you both the car and the loan to go with it, and the loan can often be a lot more profitable than the car. If you already have your financing, then half the haggling is already gone, and it will make the rest of the process a lot smoother.

Securing financing, of course, is only half the shopping experience, but it is a great first step. Knowing what you can afford and knowing you got the best deal bolsters your confidence and makes the car buying process much easier. When you are ready to start shopping, look to the research from CarFoundMe.