The excitement of buying a car can quickly turn into anxiety in the finance office. For most people, auto financing is one of the most expensive and least understood transactions they will ever make. The biggest mistake buyers make is relying solely on the dealer to arrange financing. This cedes control of the negotiation, often resulting in higher rates and thousands of dollars in unnecessary interest over the life of the loan. Successful auto financing is a battle won before you start shopping for the car, by establishing direct lending through pre-approval.

Know Your Financial Scorecard

Before you even browse listings, you must understand the financial metrics that determine your borrowing cost. The lender uses three critical factors to set your rate:

1. Credit Score: Your FICO score is paramount. Buyers with scores above 740 typically qualify for the lowest promotional rates. If your score is below 680, dedicating time to