Bill Pierre Ford

There are several places to borrow the money:

Brick-and-mortar banks and credit unions. You can get an auto loan from a bank, credit union or another financial institution. You can have these loans approved before you ever hit the showroom. The easiest and fastest way is to set up your financing at the dealership.

Home equity loan. You’ll get a good interest rate and the payments will be tax deductible (see tax advisor for details). But be sure such a loan won’t leave you in any danger of losing your house. After all, it’s just a car.

Family help. If financing is a stretch, your family may loan you money or co-sign for a loan. If they do, make sure all parties are fully aware of every detail of the loan and the possibilities should circumstances change or things go wrong.

Rates and terms
Keep in mind that interest rates on new cars are lower than on used vehicles. And, in general, new cars can be financed over longer terms than used ones. This equation can make a new car cheaper — on a monthly basis — than a used one in many cases.