Do you need a car loan to finance your new car?

Banks and credit unions are offering some great rates right now. But, be sure to consider online auto financing sites like Capital One Auto Finance. Chances are you'll save even more with an online car loan.

A little pre-planning now can save you thousands of dollars over the life of your auto loan.

Many people pay $2,000 to $5,000 too much for their car loan. Sadly, most people never even realize it. Some find out the hard way when they try to sell or trade their car, only to be told they are "upside-down," owing thousands more on their car than it is worth.

Consider a new car selling for $25,000.

Your car payment on a 72 month loan with no money down at 7.90% APR would be $389.99 per month.

Your car payment on a 72 month loan with no money down at 3.85% APR would be $438.43 per month.

That is a difference of $48.44 per month, or $3,487.68 over the term of the loan. A huge difference.

Don't give up your hard-earned money. You could be driving a much nicer car for the same monthly payment by shopping carefully for a new car loan with Capital One Auto Finance.

So how do you shop for new car financing? You could visit banks and credit unions in your area and get competing quotes from several different financial institutions.

But, the easiest way to shop for a car loan is to get an online loan. Start by visiting sites like Capital One Auto Finance Lending Tree and Road Loans. You can apply online, and get an answer in as little as 15 minutes.

Best of all the loan rates are highly competitive.

When you arrange an online auto loan with one of the lenders reviewed here you will receive a blank check to purchase your new car with. Your loan amount will be the amount you write the check for. There are no hidden fees.

An added benefit of getting an online loan is you walk into the showroom pre-approved for a car loan. This gives you the negotiating power of cash.

Imagine telling the salesman that you will be writing a check for your new car when you find the right car at the right price. Believe me, the price will be very flexible now.

When is 0% not Really $0

Sometimes car dealers offer special finance rates like 0% or 2.9%. However, these special rates are rarely a good deal. Why? In most cases you will have the choice of a special rate or a cash rebate. But, you don't get both.

So, if you have to choose between 0% financing, or a $3,000 rebate, you are really paying $3,000 to get the 0% rate! Definitely not a good deal. Compare your monthly payment with and without the rebate. In most cases you will save money by taking the rebate, then shopping around at Capital One Auto Finance for the best financing you can find.

When the dealer offers 0% or 2.9% financing you will often find a disclaimer in the ad that reads something like "for well qualified customers only," or "minimum 720 credit score."

Usually these special rates are for a limited term such as 36 or 48 months. What good is a low rate if the payment is still sky high?

Interest rates are very low right now, but the experts on the economy are predicting rates will rise in the short-term. Unlike many banks and dealerships, most online lenders like Capital One Auto Finance will let you apply today and lock in your interest rate for up to 45 days. This gives you time to shop around and find your dream car.

Do you need a price quote on a new car. Check out the cars.com web site. You can get a quote by e mail or phone  from a dealer in your area. You deal directly with the internet sales manager, so you get the lowest price up front.

Find the new or used car you want on cars.com

Do you need invoice pricing on a new car? I've looked at a lot of sites that offer invoice pricing, and Edmunds.com is by far the most comprehensive. They will give you the invoice price, as well as true market value, which gives you an idea of what others are paying for this vehicle. Try the Free Price Quotes at Edmunds.com

CLICK HERE to learn more about Capital One Auto Loans