Arranging financing before shopping for a car is extremely wise. Compare interest rates. View a copy of your credit report before shopping.

When pricing your used car, add up the total cost -- not just the monthly payment. Never borrow for the down payment. If you cannot afford a down payment, you probably cannot afford to buy and service the car. Refuse any extras the dealer may encourage you to buy, such as credit insurance. A dealer may tell you that in the event of a disability, the insurance will cover your monthly payments, but often such insurance covers only very specific illnesses.