Automotive financiers say that buyers considering used cars in New Jersey can benefit from making sure they understand the terminology surrounding loans and credit options before they sign their names to a contract.

Start by checking with outside loan agencies like credit unions or banks where one has an account to determine what interest rates are available, says industry group Americans Well-informed on Auto Retail Economics. Consider increasing one’s down payment as a way to lower the rate, or APR.

When one has an idea of what monthly payment is affordable based on his or her budget, AWARE recommends sticking to that number. It may be easier to negotiate the interest rate and lower monthly payments there as opposed to haggling over the purchase price of a used car in New Jersey.

Extras like credit insurance or extended service warranties are often offered at this point in negotiations, the coalition notes, but determine whether they are necessary beforehand and stick with that decision, it says.

Consumers “will get the most out of their vehicle financing experience if they do their homework,” says Eric Hoffman, AWARE spokesman.