Car loans can be one of two things. They are either impossible to obtain, or, depending on where you go for car financing, it’s as simple as one, two three. You definitely want the one, two, three source.

The steps seem deceptively simple. Find the car you want and apply for financing. Unfortunately, it’s not always that easy. For some reason, applying for a car loan is often harder than financing a home. There are certain things that you need to know that can make the process go smoothly so that you are behind the wheel of your dream car in no time. The same holds true for a business car finance.

Don’t apply for a loan for a vehicle that you could not possibly afford to drive, much less pay for. Be reasonable about your ideal car. Put some thought into how much you can realistically afford to pay each month. Consider whether your job is stable, and whether or not it will be there for the next 4 to 5 years. This is the time frame for most vehicle loans, by the way.

A new car is a big purchase, second only to a new home. Perhaps you might consider leasing a car. There are pros and cons to obtaining a vehicle this way. The payment is much lower, yet you don’t own the car after the time frame has been met. At the end of the lease you either have to return the vehicle to the dealer, or come up with the money to pay off the residual value. This usually amounts to a few thousand dollars and up.

Back to financing the new car the traditional way. Your first step will be to go to a bank or other financial institution in your area to begin the application process. Keep in mind that the bank is going to want to check your credit history to see whether or not you are current on all your debts. Even the smallest spot on that credit record can result in a higher rate of interest, or even that dreaded rejection letter.

Once your application is approved, you are on your way! The car is almost yours, but not quite. The bank will require you to carry car insurance, and you will have to agree to the rates and payment terms before you can get into the driver’s seat. Once you sign on the dotted line (usually in triplicate) you are actually a car owner! Make your payments on time, every time, and take good care of the new car.