In the fourth step of the car buying guide we'll cover the importance of budgeting and a couple of great sources to shop for cars online.
It's very important to figure a budget prior to getting to the dealership. Not only do you want to figure one, but you'll want to stick to it once at the dealership.
I've seen more than one customer take on way more payment than they could afford and it usually doesn't end well for their credit.
Use a car payment calculator to get a feel for what type of payments you'll be looking at for the car you want. Don't forget to add for taxes, warranty, GAP insurance, etc. in your estimated amount financed.
If you have excellent credit, figure between 4%-7% for your rate, for above average credit figure 7%-9%, for average credit figure 9-14% and for below average credit, then use a rate between 15% and 24%.