If you are ready to purchase a car, you are going to want to get financing. Financing allows you to get money to borrow the vehicle so that it isn't all coming out of your pocket. When it comes to getting financing, there are some things you need to know to get the financing deal right. 

Clean Up Your Credit

Before you start shopping around for a car loan, you are going to want to clean up your credit. Take a look at your credit score and make sure all the information is right. If your credit score is a little low, try tactics such as paying off credit cards that are nearly maxed out and lowering the balance. Make sure you are paying your bills on time. Be sure that your credit report, even if the score isn't that high right now, shows that you are paying things down and that you are making payments on time. Good credit behavior can be really helpful when applying for financing.

Get Multiple Pre-Approvals

Next, you are going to want to get pre-approved for the loan. When you get pre-approved, don't just stop at one lender. Get pre-approved with a couple of different lenders. This will give you an idea of how much money you can borrow to purchase the car, and what type of interest rates you will be facing. It is smart to always shop around to ensure that you are getting the best interest rate possible. This also gives you ground to negotiate when you go to the dealership. The dealership is going to try to get you to use their in-house financing. When you have already been pre-approved, you can use the in-house financing offer and compare it against the other lenders you were pre-approved by to see which is better. You may even be able to leverage the offers off one another and get a better deal. 

Know How to Negotiate

When it comes to purchasing a car, you need to know how to negotiate. You should focus on setting the price of the vehicle. Do that before you start talking about financing. Determining the price and determining the financing should be two separate conversations. When you combine those conversations, that is where you usually end up in trouble. Set the price, then work on the financing terms, and if you have a trade-in, talk about that after you set the price. 

Avoid Add-Ons

Most add-ons don't have that much value. If you didn't already want to get the add-on before you purchased the vehicle, avoid the add-on when you buy the vehicle. These are usually just an easy way to drive up the price of the vehicle.

When it comes to financing a vehicle, ensure your credit is in good shape. Get multiple pre-approval offers, negotiate the price before talking about trade-ins or financing, and avoid last-minute add-ons that only drive up the price.  

For more information about auto financing, contact a local lender.