Of course, dealerships are always happy to talk loan. It's a big part of their business. But you may not get the best deal by going through the dealership. Just as with any other loan, it really pays to shop around for your car loan.

One of the big questions is new car or used car. This will greatly impact your loan's APR, as generally new car loans get better rates.

But even before you shop around for a loan too much, you should have some idea as to your credit score. If your credit is in poor shape, you can assume that you will have to pay higher rates than if you have good credit. But if you don't know how your credit is doing, you ought to try to find out. Can't hurt anything, right? Especially since you're entitled to get it free annually.

It can pay to know what the dealership has to offer, of course. No doubt you have seen plenty of commercials offering low rates for top tier customers. This can be wonderful if you're in that tier, but no promises are made for those who don't qualify. You may well be best off getting your loan elsewhere.

Besides, having your own funding can really throw off the salesman's pitch. So much of the sales routine has to do with financing that being able to say you have it taken care of makes the salesman have to work a little harder on the pitch.

You'll also need to consider what you can do for a down payment. Obviously, the more you pay up front, the lower your payments will be in the long run. Really try to work with what you can do to make the most of your down payment without hurting yourself financially.

Buying a car is a very exciting time. Even if you can't afford the car of your dreams, you're probably getting something better than you own right now. You'll want to be prepared for the upsell, and know what you really can afford. You do not want to buy more car than you can afford, and end up having it repossessed. The damage to your credit is not worth the fancier car.