1. First check your credit rating. A good credit history will enable you to avail a low cost car loan on attractive terms and conditions. A good credit rating will also improve your loan approval chances.

2. Spend time researching in the market about the actual cost of your dream car. Compare prices from various local dealers. Look around for offers and discounts and talk with at least three dealers to get a better deal.

3. Calculate your monthly income minus all your spendings to find out how much you can afford as a monthly installment. Be realistic in your analysis. A thumb rule is that your monthly installment should be less than 20 percent of your monthly earnings.

4. Make sure you have enough money for the down payment. Make provisions for as much down payment as possible.

5. Don