1. First check your credit rating. A good credit history will enable you to avail a low cost car loan on attractive terms and conditions. A good credit rating will also improve your loan approval chances.

2. Spend time researching in the market about the actual cost of your dream car. Compare prices from various local dealers. Look around for offers and discounts and talk with at least three dealers to get a better deal.

3. Calculate your monthly income minus all your spendings to find out how much you can afford as a monthly installment. Be realistic in your analysis. A thumb rule is that your monthly installment should be less than 20 percent of your monthly earnings.

4. Make sure you have enough money for the down payment. Make provisions for as much down payment as possible.

5. Don't get lured by the car loan rate from the manufacturer or the dealer. They can be exorbitant. Don't get trapped in marketing gimmicks like 0% interest rate, free insurance etc. Only people with perfect credit ratings actually qualify for these deals.

6. Explore the market and shop around to get a low cost car loan. Seek advi

ce from banks, car dealerships and lending institutions. Look for online loans on the net. You may come across a fast and low cost car loan.

7. Try to find an auto loan with an affordable monthly repayment that you can pay back in a fixed time period. Always remember the smaller the monthly installment, longer is the repayment period. Longer the repayment period, higher is the actual cost of the loan.

Keeping the above points in mind while availing a car loan can help you considerably in finding a low cost car loan.

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