Before you apply for a loan, check out what your car is going to cost by looking in newspaper car columns and magazines, also check out cars on the internet.
How Much? 
Work out how much you can afford in monthly repayments and take into account:
- Registration.
- Regular maintenance.
- Insurance.
- Petrol.
- Replacement of tyres.
Shop Around
Do not just compare interest rates. Look at the total cost of each loan including:
- Loan establishment fees.
- Ongoing fees.
- Penalties for paying your contract out earlier.
- Lump sum payments at the end of the loan (balloon payments).
Arranging Finance
It is best to arrange the finance before you go car shopping, because:
- The money will be available when you need it.
- A pre-approved loan can give you cash - in-hand bargaining power.
- The choice of who to arrange finance with is yours - instead of having to make a hasty decision when buying the vehicle.