It is not often that a person buys a car without taking a car loan. Most car sales are completed with a car loan. When applying for a car loan, you have to decide on the car you intend to buy, keeping in mind your budget, the price, the type of car and unexpected maintenance costs.

Then, find a loan you can afford. To do this, get quotes from all finance companies, and match them to your requirements. The best means of obtaining car loan quotes is by comparing the rates of used car loans, new car loans and car title loans offered by the different car loan companies. Compare the interest rates, upfront margin to be paid, and the pre-payment clause of the different loans from different companies. Also find out what the monthly payment is, the duration of the loan repayment, the percentage of the car price that is being taken as a loan, and any other incentives or discounts that the finance companies offer. You could use online car loan calculators to do this. Once you find the car loan that fits your budget and expectations, you can apply for it.

Those with bad credit need not fret, as there are bad credit loans available. Whatever car loans you apply for you require certain documents, like your proof of income and residence, banking history, proof of identity, photographs and signature verification from the bank. When signing documents, make sure to clarify points that are not understood by you, to avoid future complications. Read the fine print carefully. Then you have to pay your down payment, and collect the car from the car dealer.