1)Work with the dealer (the place you are buying the car)

2)Have your bank finance the car.

3)Get an online finance auto loan

4)Home equity loans

There are more ways but this are the ones I will be going over in this article. Well lets get started with the first option.

Work With the Dealer: You have seen these before. You are driving down the street and you pass a car lot that has a huge banner that says something like 100% Approved or Make no Payments for a Year. Most dealers have a loan option that will help you get into that car.

The thing to worry about with working through a dealer is that more often then not they have a much higher interest rate that they charge then going somewhere else. They also are very hard to work with if you get into a financial bind and can't pay your payments. Most often they will repossess that car faster then other companies. On a positive note they do make it easier for those that don't have good credit to get a car.

Have Your Bank Finance Your Car: This is sometimes better because you have a history with the bank. Banks and Credit Unions have some of the best annual interest rates that you can get. I've seen some as low as a 3% fixed rate APR. Because of this they do tend to be a little harder to get.

There is a downside to this as well. If you get a car loan with your bank and an emergency happens, you may not be entitled to any additional loans through them. On the other side banks are easier to work with and you have the convenience of having a car payment that you can pay locally.

Get an Online Finance Auto Loan: This can be scary especially for those that are unfamiliar with an online loan. The most frequent question asked about online auto loans is, How can I shop for a car at a dealership when I am applying for the loan online?

This can be very simple. When you are shopping for a car you usually have and idea of what type and model of car you want. Find out the sticker price of those cars. Like the Toyota you want is $23,000 and the Honda is $25,000.

At this point, you go online and apply for $25,000 and they will approve you up to that amount and send you a blank check. You then talk down the price at the dealer and then write the check for far less then the sticker price.

Home Equity Loans:This is getting more popular as the years go on. The upside of using your equity for a car is the possible tax deductions on the interest you pay on the loan.