If you earn well and have good credit score, then there is nothing stopping you from obtaining a car loan. To make things easy, follow these steps.
1. First choose the car of your dream meticulously and be specific regarding its usage. After bargaining with the seller and negotiating a fair price, prepare for approaching lenders.
2. Do some research. As there are numerous lenders and institutions providing auto loan, a through research and comparison might go a long way in getting you a lender who meets your requirement. Compare interest rates charged by different lenders including car dealers who provide financial assistance to buy a car.
3. Check out the trade-in value of the chosen car and then use this value along with cash for determining down payment. A 20% is a healthy one, but by using trade-in value, this can be further brought down.
4. Apply for loan where interest rate is the least. The length of the loan periods and monthly payment must be within your budget.
5. Opt for savings to pay for down payment or select a less expensive car. Also, build a good credit rating if you do not have one before opting for loan. Clear out your credit card bill and other debt before approaching any lender for a car loan.