Congratulations on your new car! Or maybe it’s a little early for that. Do you still need financing? What about car insurance quotes? If you’re ready to make a new car purchase, you’ll need a way to pay for the vehicle and make sure it’s properly insured. In this guide, we’ll cover all the different ways to finance your new car and shop for car insurance. We’ll also include some helpful financing tips as well as ways to shop for car insurance before you ever leave the dealership. Ready? Let’s get started.

Get Financing Through the Dealership

Most dealers offer financing. Sometimes the financing is directly from the dealership itself (buy here, pay here), but usually, it’s through a third-party lender.

The process varies a bit from one lender to the next, but generally, you can expect the following steps:

1. Negotiate the price of the car with the salesperson. Sometimes they’ll try to negotiate the monthly payment instead. Don’t fall for this trick! You’ll usually pay more for the car if you only pay attention to the monthly payment. Negotiate the total sales price first, then look at your monthly payment once you’ve got financing options in front of you.

1. Apply for financing. You’ll fill out a short application that includes all your personal info. Lenders may also ask for recent pay stubs, W2s, a down payment, or other items. Usually, a larger down payment means a lower monthly payment. However, if your financing options have super-low interest rates (such as a 0% promotional rate), you might do better financially if you keep some of that cash in your pocket.
2. Review your options. The dealership will run your application through several lenders to find the best terms. If your credit is decent, you should receive at least one lending offer. Review the terms of each offer and choose the one that makes the most sense financially. Usually, this is the one with the lowest interest rate and overall cost, but that’s not always true. When in doubt, look at the bottom line because that’s the total you’ll pay for the car.

Get Financing Through Your Local Bank or Credit Union

If you want more negotiating power at the dealership, aim for pre-approval at your local bank or credit union. The process is pretty similar to the car dealership, except you’re only applying with one lender instead of several at once. It’s also a bit less stressful because there’s no negotiation. The loan officer will review your application and make an offer. They can print an offer letter for you to show the dealership once you’ve chosen a car. Because you’re pre-approved for financing, this gives you a little more power at the dealership. You can negotiate the sales price easily because salesmen often make more money off the financing deal. Once you’ve negotiated a good price for the car, you can show your pre-approval letter and skip the dealership financing spiel. Sometimes the dealer will offer to beat the pre-approval terms. It’s a win-win scenario.

Pay Cash

If you have the option, consider paying cash for your new car. It’s much easier for everyone, and you can snag a great deal when you have the money upfront. A monthly car payment is never ideal, and cash lets you own the vehicle outright as soon as you sign the paperwork. Still, cash isn’t an option for most people, so you can always choose one of the other financing options if you need it.

Compare Car Insurance Quotes

No matter which financing option you choose, it’s important to shop for car insurance before you leave the lot. Sometimes your current insurance company provides new vehicle coverage for a certain amount of time, even if you don’t notify them. For example, if you have an insured vehicle and you trade it in, your insurance might provide 30 days of coverage on the new car, even if you haven’t switched it over yet. However, that’s not always the case. If you have a car accident on the way home, you may not have insurance coverage. For that reason alone, it’s always best to review your current policy terms with your current insurance provider and shop for car insurance quotes before you drive home. It’s usually simple and easy to purchase car insurance online, and it gives you extra protection should the worst-case scenario become your reality. You can use one site to generate multiple car insurance quotes, compare car insurance options, and make your final decision.

Final Thoughts

Car shopping is always fun, but sometimes it’s intimidating, too. When you do your homework and review your financing options as well as shop car insurance quotes in advance, you streamline the process and feel more confident when you walk into the dealership. Then you can hit the road and enjoy your new car!