By Sabrina Karl

If you want advice on the financially perfect way to pay for a car, it’s to save up and pay in cash. But if you’re like most Americans, you’ll need help financing the purchase.

Not all auto loans are the same, however, and it pays to spend time finding the best deal you can. While you may think that means finding the lowest rate or smallest monthly payment, the most important steps start with you.

First, consider your credit score. What auto lenders find in your credit report will impact the rate they offer you. So if your score could stand some improvement, consider delaying your car purchase a few months while you make some score-improving moves, such as paying off a card balance. Also avoid applying for any new loans or cards in the six months before wanting an auto loan.

Second, use an auto loan calculator to determine how much car you can afford, as well as the shortest term you can swing. Shorter loans offer lower interest rates, so while you may be enticed by the smaller monthly payment of a longer loan, you’ll ultimately pay much less with a shorter term.

Also play around with how your down payment will affect your payments. The more you can scrape together to pay upfront, the lower your loan amount and potentially the lower the rate offer you’ll receive.

Third, shop around. While it’s fine to inquire with your primary bank, it’s more important to research rates online, as well as check with local credit unions. From this research, create a short list of 3-4 lenders.

Lastly, request actual quotes from these sources, including asking for quotes that show different loan term options and different down payment amounts, so you can choose the best option for your budget.