After your mortgage, your car loan will probably be your next largest monthly payment. So its important to calculate what you can realistically afford taking account of such items as insurance costs which can be 5 to 12 percent of the car. You can however cut insurance costs by choosing a model that attracts a lower insurance premium due to its good claims record

For an auto insurance quote you can go to Insurance Quotes

A good rule of thumb is to plan on spending around 15 percent of your monthly income on all automotive expenses, considering factors such as service warranties.

Also, before taking out your car loan make sure your getting the right car.

This may seem obvious, but if your haven’t thought carefully about things like how many people and how much luggage you need to carry, you may become a unhappy car owner.  Your current car is also in important factor in your loan requirements. By checking the Web sites and your local newspaper can give you a realistic valuation. You can often get more cash by selling your car directly instead of trading it in for your new car.

Should you buy new or used? The build quality has improved has improved significantly so a used car may be the sensible choice, unless of course you are getting a hefty discount or a great deal on a new car. Whichever you decide on its important to do your homework and set your budget price. The internet is a great tool to find dealer’s costs and vehicle options. Being informed is the first step to getting the best deal.

 Once you have your budget and you know how much you will need to borrow then shop for the best car loan deal; a good place to do that is: Car Loans

Negotiate your purchase. Get competitive bids from several dealers, keeping the focus on the bottom line. If you don’t like haggling, consider online auto-buying services which are fast, easy and with very good prices.

Finally, keep the budget in mind and don’t let the finance manager sell you their high-profit financial add-ons which are seldom worth the money.