AUTO LOANS

New car is second only to a home as the most expensive purchase many consumers make. Even if you are buying a used car or leasing a vehicle, you need to make sure you find the financing that meets your needs. If you already have your car loan, you may want to consider refinancing if you feel you can get a lower rate. It is important that you arrange your financing prior to negotiating price with a dealership--ideally, before you even visit a dealership. The financing "arm" of a new car dealership is a prolific profit center--dealers will often take smaller profit deals when selling the car (the "front-end" profit) if they know that they are going to make a nice profit on the financing of the car (the "back-end" profit). The problem with this is that it is you run the risk of giving all (or more) of your purchase savings back when it comes time to finance the car!