The tips below are sound advice when looking to secure a loan for, say, the purchase of a car.

If you already have a loan and are wanting to replace the car and take out a new one remember that the previous loan is in your name and it's therefore your responsibility to make sure that it's paid off. If the dealer promises you that he will take care of this, make sure that you get it in writing from him that he will pay it off within ten days. Some dealers have been known to promise to do this verbally but have then failed to do so and then denied all knowledge of the matter leaving the client to pay off the old loan as well as the new.

If there are any manufacturer deals or rebates on offer, they are often very beneficial but watch the long term interest rates. Very often they shoot up after the 'honeymoon' period but if you're on the ball you can benefit from the initial offer and then transfer the loan to a company that offers a lower rate.

If you have a bad credit history the chances are that you will either be turned down or the interest rates quoted to you will be higher than normal. It's quite possible to do your own checks so that you have an idea of how you will score and there are also companies that will help you to repair your credit history. There's always (well, nearly always) a way round these things and take heart that only about 7% of the population qualify for the best rates that are advertised.

Some dealers try to insist that you fill in a credit application form even if you're paying cash. They will quote the Patriot Act and try to intimidate you into giving them a lot of personal information and this is what they're after because they can sell it on to other companies. Don't become so emotionally attached to whatever you are wanting to buy that you feel you can't walk away. It's almost always a buyer's market.

Know and understand everything about the model that you're buying. Don't be hoodwinked into believing that standard benefits have been added specifically on this car. Know the specification of the model, the cost as new and what similar cars are achieving in magazines and papers locally.

If you do apply for credit with the dealer and need to put down a deposit while you wait to hear if you've been successful, don't use cash. If you use a credit card you'll be able to dispute the payment and stand a chance of retrieving your money whereas the dealer can simply refuse to pay back the cash.

Don't forget the length of the loan. Sometimes the offer a dealer may put before you can look very encouraging but it may be over a far longer period than another company. Look carefully