Most people looking to get behind the wheel of a new car try their best to negotiate with dealers over the price of the automobile. Though most experts would recommend the practice, some say it may be distracting them from a more pertinent issue – financing. Too often consumers don't think about things like high interest rates until they are too far along in the process, the Associated Press reports.

It may not be all buyers faults though. A recent round table discussion by the Federal Trade Commission found that financing that is done through the dealers themselves can often be a hard-to-follow process. Additionally, since such practices are not overseen by the Consumer Financial Protection Bureau, there's not very many actions in place to prevent falling victim unscrupulous lenders.

There are a number of things consumers can do to protect themselves from agreeing to a less-than-favorable loan, according to the AP. Specifically, car buyers should be sure to check what loans are being offered from other institutions including banks and credit unions before agreeing to financing from the dealership, which provides them with leverage to negotiate with.

In addition to seeking out other loans to improve their bargaining power, the news source recommends looking into the extras that many dealerships try to sneak in. Specifically, some experts say that while things such as extended warranties and credit insurance may seem like good deals on their face, it may not be the case upon closer inspection and it would behoove buyers to closely read the terms of agreement.

Of course, navigating the financing of a car is not all about knowing how to deal with lenders. There are a number of ways that buyers themselves can make sure that they get the bet loan possible, according to U.S. News and World Report.

First and foremost, buyers should make sure that their credit is in order, especially in the wake of the subprime mortgage crisis. Luckily, there are number of ways to get a credit check before applying for loan by contacting organizations such as Equifax and TransUnion.

Finally, financial security may have less to do with the loan and more with what type of car people are purchasing. The news source urges buyers to eschew luxury cars for more affordable models, which will be much easier to finances.

Many car dealers often attract prospective buyers with discounts and other incentives, but sometimes they may not be as good as they seem. However, that does not mean that consumers can't get the most out of these deals. Experts say they just need to do their proper research beforehand.

According to the Lansing State Journal, the most important thing for buyers to have in mind is how much other dealers are asking for the particular car that they're looking for. Industry analyst Scott Watkins says that doing so will signal to salespeople that the customer has done their research, and may remove the necessity of the usual negations.

"It's possible for the customer to go in and get a good deal if they know what the dealer is paying for the car and if they know what dealers in that area have been selling the car for recently," Watkins told the news source.

Reading the fine print on certain discount plans is also crucial as well as many customers walk into a dealership thinking they qualify, only to find out they'll have to pay much more.

Drivers looking to get the best deals on a used car should check out New Jersey Auto Auction, which offers plenty of makes and models at affordable prices.

Over the last several years, some car buyers have fallen victim to the rather unscrupulous practice of "yo-yo" financing. The Baltimore Sun reports that in an effort to help protect consumers, the Federal Trade Commission is trying to crack down on the harmful method.

Yo-yo financing is when auto dealers themselves provide consumers with loans. After letting the customer drive off with their new car, the dealer will then call them back and tell them that the financing did not work out – often resulting in the customer having to sign a new, less favorable deals.

"It's a major problem in our state and other states," Karen Straughn, an assistant attorney general in Maryland, told the news source.

Though it may be a large problem, there are certain ways around it. The news provider reports that many consumers are instead turning to the internet to shop around for deals on financing before purchasing their car.

Experts suggest that anybody looking to finance a car should be sure to check their credit first to inform themselves of anything that might keep them from getting a loan.

Drivers who may be looking to get a new or used vehicle were recently given a bit of good news. Despite still being in the wake of the recession, auto loans are much more accessible now for even the most credit-challenged consumers.

The reason for the increase in confidence among banks is that lenders have more money than in recent years, and also have more to work with in terms of financing options. Additionally, there is more competition between financial institutions for new customers, something which can only be good for prospective car buyers.

"This is very good news, it is so important for most of us to have a car or truck we can depend on," said industry insider Jeremy Franklin. "People really need their vehicles to be reliable so they can get to work and get the kids to school and activities."

Of course, experts warn that just because banks may be more willing to issue loans, that does not mean consumers can ignore maintaining their credit level. By keeping their credit scores at a high level, it boosts the number of financing options and advantages they have.

The United States continues to emerge from the the recession, and there are promising signs that consumers may once again be ready and willing to purchase new and used cars. According to The Associated Press, a new study conducted by Equifax found that that auto loans rose by 20 percent in the first quarter of this year compared to the same time period of 2010.

Among the findings, researchers noted that March was the biggest month for auto loans in quite some time. Consumers opened 1.8 million new loans, which is the biggest number in almost three years and even outdid the the 1.6 million loans that were taken out during the Obama Administration's Cash for Clunkers program in 2009.

Despite the increased opening of loans, the news source reports that sales grew modestly in June, likely an indication of apprehension over the unstable economy and relatively high gas prices. Still, the growth in loans demonstrates a boost in consumer confidence, and those who are thinking about taking out a loan may want to consider a few things first.

The most important thing to figure out is how expensive of a car you can afford. While it might be tempting to purchase that flashy sports car, especially since living outside one's means is one of the reasons the U.S. got in to the economic crisis it did, the better option may be to settle for a modest sedan.

Even still, many people may be unaware of what exactly their limits are when it comes to a loan. Experts suggest a simple mathematical equation to determine the ceiling. To start, figure out your maximum monthly payment, and then calculate out how many years you'll spend paying off the car. From there, multiply the years by 12 (to get the number of months). Then, multiply the monthly payment by the number of months to determine your total limit.

Of course, once you've figured out your maximum loan, your job is not over. Cars.com recommends shopping around as much as possible, as not all lenders are created equal. Specifically, make sure you compare interest rates of credit unions versus banks. You should also be sure to look into organizations that offer incentives like discounts for early payoffs, and be wary of ones who might charge you hidden fees.  

Between purchasing, financing, registering, insuring and maintaining an automobile, it's no secret that buying a new or used car can be an costly experience. This can be especially true for first-time buyers who may be inexperienced in such financial dealings. However, this does not have to always be the case. There are several ways individuals can reduce the expenses of owning a car, and according to The MetroWest Daily News, it is not that difficult to do – all it takes is some dedication.

Of course, the most obvious initial cost is purchasing the car, but this can certainly be mitigated by doing plenty of research. Experts say that looking into what your needs are and which car, whether it be new, used, SUV or sedan, best fits them will go a long way in limiting costs. Furthermore, there are plenty of channels with which prospective buyers can gather information about how much their ideal vehicle costs. Coming prepared with the knowledge of how much a certain car should be going for will ensure that you get the lowest possible price.

Financing also plays a large role in the entire cost of a car, and for young first-time buyers it can be extremely important. According to the news source, they should be on the lookout for hidden high interest rates and instead may want to turn to credit unions that offer fair interest rates.

Insurance for young drivers is usually pretty costly, the news provider reports, but there are ways to help lower the expenses. In particular, it all depends on which company to purchase insurance from. The best way to find out which company is best-suited for newer drivers is to check with local independent agents. Also, drivers should be sure that the amount of coverage meshes with the value of the car in the first place.

Additionally, the news source reports that many younger drivers may not take into consideration the fact that there are many costs that go beyond just the initial purchase. When a car breaks down, repairs can be especially costly, so it would behoove first-time buyers to take great care in maintaining their purchase. Specifically, checking the oil, tire pressure and regular waxing are all easy to accomplish and will not only save money in terms of regular check ups but will ensure the car stays in good shape for years.

With gas prices high right now, drivers may not have a ton of money to spend on a new vehicle. Yet even if you don't have lots of cash at the moment, that doesn't mean you can't opt for a new car.

Technology has advanced considerably in recent years, and many models now come with high EPA fuel economy ratings. That's great news for drivers who are currently stuck driving around a gas guzzler. It seems like every automaker has come out with a high-MPG vehicle in recent years, and best of all is that they're not too expensive. In fact, if you can find them on the used car market the savings can really start to add up.

A recent survey by the Consumer Federation of America found that the average family will spend $3,100 on fuel this year, up from $2,000 in 2009. That's a significant chunk of change to set aside in a recovering economy. The reality is that many drivers can't purchase a car outright. So instead, they opt for financing – which can be a great move when times are tight.

The important thing to keep in mind when doing this is to keep your car loan what's known as "rightside up." An "upside-down" loan is when you ultimately owe more on the car than the vehicle is actually worth. This creates a sticky situation for drivers, as they can't sell off the car to pay the loan.

When you're buying a vehicle for a specific purpose – like its miles per gallon rating – this is an important consideration. That hatchback may look attractive now with gas prices hovering around $4 per gallon, but if prices drop then you might be feeling a bit cramped in a year or two, or starving for a bit more horsepower. The great thing about auto financing is that you don't ultimately have to stick with the vehicle – as long as you remain rightside up, you can always sell it off and put the equity toward a new car.

Drivers should also keep in mind that high gas prices may be a good reason to look into refinancing as well. Refinancing is typically a term reserved for the mortgage industry, but it applies for car loans as well. Those who already have a loan can restructure the terms and lower their monthly payments. This can be a good way to offset the increased price you're paying for fuel by lowering the amount you're putting toward the loan. Just be careful here, as paying too little toward the loan can have the aforementioned effect of making the loan go upside-down.
 

The monthly report from the Federal Reserve indicates that more Americans are borrowing for "big-ticket" items via boat, education and car loans, while simultaneously decreasing their amount of credit card related debt.

The Federal Reserve's recently released figures, which tracked spending throughout February, are broken down into "non-revolving" and "revolving" debt. In simple terms, revolving debt is anything that's put on a credit card, while non-revolving are long-term loans other than mortgages (typically boat, education, vacation and car loans).

Non-revolving debt saw a big upswing in February, as it increased by more than $10 billion dollars. That was coupled with an $8 billion increase in January. Analysts are pointing to the brisk sales at auto dealerships as one of the primary causes, as Americans are financing their new purchases with auto loans.

On the other hand, credit card debt shrunk by more than $2 billion in February, suggesting that consumers are being careful with their finances. With the two figures combined, debt increased by 3.8 percent, the biggest swing since June 2008.

Drivers who need a car but are still being careful with their financial budgeting may want to come down to New Jersey State Auto Auction. There are a wide variety of models to choose from, and drivers can get car loan financing for the vehicle of their choice with terms that won't break the bank. 

A computer error at major credit bureau Experian led to many consumers' credit scores being temporarily lowered over the weekend, as they were thought to have overcharged their cards when they really hadn't.

According to MSNBC, data related to the credit limits on several thousand cards issued by HSBC was entered incorrectly, causing scores to plummet. The last two digits of the actual credit limit were apparently left off, meaning that a card with a $2,000 limit was instead reported as having a $20 limit. Obviously, this meant that a vast majority of the users were seen to be well above their limit, a situation that can have dire repercussions for credit scores.

The error occurred on Friday, April 1st, and was apparently not fixed until Monday, April 4th. Users found out about the issue due to credit monitoring agencies, which track scores for any major activity and send out alerts when major changes occur. According to the bureau, the scores should be back to normal now, although those whose reports were requested over the weekend may have been affected.

Drivers who are in need of a car loan should be sure to check their credit report for any inaccuracies before heading down to the dealership. Once they're sure that their score is accurate, New Jersey State Auto Auction can provide assistance with many forms of auto financing.