1. Check Your Credit Score

Before you even walk into a dealership or apply for a loan, take a look at your credit score. Lenders use this number to determine how risky it is to lend you money. A higher score usually means better interest rates and terms. You can check your credit for free using various online tools or through your bank.

2. Set Your Budget

It’s tempting to go for the car of your dreams, but it’s important to stay within your means. Factor in not just the monthly payment but also insurance, maintenance, and gas. A good rule of thumb is to keep your car expenses below 15% of your monthly income.

3. Shop Around for the Best Loan

Don’t just rely on the dealership to arrange financing. Check out different lenders like banks, credit unions, and online lenders. Missouri has plenty of credit unions that offer competitive rates, and they’re often more flexible than big banks.

4. Get Pre-Approved

Getting pre-approved for a loan not only helps you understand what you can afford, but it also gives you leverage when negotiating the price of the car. With pre-approval in hand, you can shop more confidently and avoid high-pressure dealer financing tactics.

5. Choose the Right Loan Terms

Pay attention to the length of the loan and the interest rate. While a longer loan term can reduce your monthly payments, you might end up paying more in interest over time. Try to strike a balance that fits your budget without stretching the loan too far.

6. Read the Fine Print

Before signing anything, read the loan agreement carefully. Look out for hidden fees, early payoff penalties, or required add-ons like extended warranties. If anything seems unclear, don’t hesitate to ask questions or even walk away.

7. Close the Deal and Drive Away

Once you’re happy with the loan terms and have selected your vehicle, it’s time to finalize everything. Bring your ID, proof of income, insurance information, and pre-approval letter (if you have one) to the dealership or lender. After signing the paperwork, you’re good to go!