If you’re thinking about buying a car, chances are you’re thinking about how to pay for it.

First things first – even if you figure out how to get the best loans, it doesn’t mean it’s time to buy a Maserati. Ask yourself: “How much can I afford to pay each month? For how long will I be able to do this?” This will help you determine what car you will actually be able to afford.

Next, you will want to obtain an accurate copy of your credit report and start shopping for loans. The more you research your options, the better chances you have of finding the best deal. Your financing options include: banks, credit unions, online financial institutions, finance companies, and the dealership itself.

• Banks are the most common option. Having an account at a bank isn’t required to secure a loan, so you’re free to look around. However, if you have a good relationship with a bank it’s likely that you can leverage this to negotiate a better interest rate.

• Credit unions often offer the best rates, but you usually have to be a member. Both banks and credit unions offer home equity loans, which use your home as collateral to secure your loan.

• Online lenders offer convenience and competitive rates, but can be risky and impersonal.

• Finance companies loan out money more easily than banks, but they’ll be sold at retail price.

• The car dealership itself should be your final destination. It is quick and convenient but much more expensive. Dealerships mark up interest rates in order to finagle a profit out of loans which would normally occur between just you and a lender.

Dealerships sometimes present you the choice of either a rebate or 0% interest. While the 0% sounds wonderful, it might not be possible for you due to the short terms and high payments required to qualify for it. In any case, rebates usually reduce your total financing costs even more than 0% APR does. There is no catch! They are offered by manufacturers as an incentive to purchase specific cars that they probably have too many of. But to be sure, use the auto loan calculator below to confirm that the rebate is the better deal.

For better or worse, your credit rating will ultimately be the biggest influence on what interest rates you’ll be offered. To potential lenders, credit ratings indicate the level of risk and they will raise or lower the interest rate appropriately. However, credit ratings are not the end-all be-all. Interest rates are also determined by the duration of the loan and the age of the car. The shorter the term of your loan, the lower the interest rate. The newer the car model, the lower the interest rate.

The best option for you will come naturally after doing your research. Go to a bank or credit union to learn what rates can be offered to you and what you can afford. Bring this knowledge to the dealership so you are prepared to negotiate. Strangely enough, the most important part of shopping for a car is not shopping for a car; it’s shopping for the money to buy it. Knowing all your options – and knowing them well – could save you thousands of dollars!