What is the fastest way to buy a car?

Dealers are usually registered with third parties or indirectly. A better way to do this, Reed says, is a five-year loan for a new car and with a used car you should finance it for only three years, that is, 36 months. One reason that makes sense, he says, is that if your used car breaks down and it's not worth fixing, let's say the transmission goes completely, you're more likely to have repaid the loan by that time. The easiest and most economical way to buy a car is to buy it directly with cash.

One of the best ways to save money on an auto loan is to not get any loans. If it's possible to pay cash for your car, it's highly recommended. Since you won't be charged any interest, you'll end up paying the least amount possible for the car in the long run. Getting all payments out in advance can be a big help.

If you want to buy a new vehicle at the best possible price, it's a good idea to get pre-approved for a loan. Get pre-approved by your bank, credit union, or other financial institution and take that pre-approved loan to the dealership when you shop. This will give you something to compare with the rates offered by the dealer. Often, if you show up with the grantee with a pre-approved loan from a lender, you can take advantage of it by negotiating terms.

You can also get a loan with conditions you're comfortable with. It is recommended that your loan be no longer than 48 months and that your monthly payment does not exceed 15 percent of your income. The best thing to do if you want to get a good deal on a new car is to do everything you can to improve your credit rating. Many dealers and banks will consider your credit rating when deciding on down payments and interest rates.

The better your score, the less you'll pay for overtime on your car loan. One of the best ways to improve your credit rating is to keep your credit card balance low. It's recommended that you keep your credit use below 30 percent if you want to keep your credit rating as high as possible. You should also limit the number of tough inquiries about your credit, which occur when you apply for new cards.

A great way to drive a new car without the hassle of getting a loan is to lease a vehicle instead. Leasing is a good option for those who like to drive newer cars and don't want the responsibility of owning them. Many leases are available for 24 or 36 months and will have a set number of miles allowed depending on the terms. Decide when you want to buy a new car and divide the amount of your anticipated down payment by the number of months you have left until then.

This will tell you how long it should take to save enough money. Then visit the dealerships and ask about those rebates. In the meantime, use personal finance software, such as Quicken, to help you budget for future care.