Before buying, do your research.

When should you buy your next car? Anybody car-shopping plays the role of economic prognosticator, looking at sales goals, credit standards, and other data to ultimately land the right deal. So, right now, who should buy a car, and what kind of car should it be? Wallethub has a new study with some surprising answers.

Better Credit, Better Deal

Right now, conditions are best for buyers with excellent credit. After six years of record-breaking sales, it appears that the auto industry will be “easing itself down the mountain.” While you won’t see a crash, automakers will be selling fewer cars and Wall Street will be tightening loan restrictions. That means a buyer with excellent credit is a valuable commodity. So, if you have good credit scores and need a car, now is the time. That is especially true of used cars, which are about to see a big supply increase as leases expire and dealers become desperate to get them off lots.

Conversely, if you only have OK credit, it might be better to hold off; Wallethub found that those with fair credit were paying six times as much interest over the life of a current loan than those with great credit. Unless you have a large down payment banked, shop warily.

New Cars May Be Better Deals

Of course, not everybody can swing, or for that matter particularly wants, a new car. But if you are looking at interest rates, you may want to consider buying a new car at a more modest price point than a used car at the moment. Used car loans, thanks to problems in the subprime lending market, are facing a squeeze with interest rates going up. On average, at the moment, you will pay 16 percent less interest on a new car over time than you will pay for a used one! So unless you are buying without financing, it makes sense to look at new cars.

That said, you will want to keep an eye on the overall market as the year progresses. Dealers believe a used car glut is coming in 2017, so a lot of supply on the market might mean lower prices to create demand.

Know what you are paying for before you take the keys.

Dealers And Credit Unions Have The Best Rates

That dealers are chopping into interest rates is hardly surprising. After all, most dealers are a retail arm for an automaker’s credit agency. Automakers are facing lower sales and thus are willing to take a cut on interest in the future if it means getting you behind the wheel of a car now.

Credit unions might be another place to look. Since credit unions are not accountable to a Wall Street board, but rather to their members, they tend to view themselves as competing with dealers for car loans, and they are willing to work with consumers on interest rates. National banks and regional banks are hiking up rates, so look at the dealers and the credit unions, not the big banks.

Remember, there are dozens of factors that go into buying a car and setting its price. This is just an overview, but if you need more detail, explore the research from CarFoundMe.