People think it’s so easy to buy a car these days. Down payments are low and car companies are promising low monthly payments. But before you sign your name onto that sale document and get a car loan, check if you have all these things taken care of.

1. The best price and offer

Gather all quotations from different car dealers and lock in on the best price. Different dealers will have different prices for a specific car. You’d be surprised at the discounts and freebies that some car dealers will give you. Check their payment scheme and choose the one that best fits your capability.

2. The lowest interest rate

Compare interest rates of various banks. If you already have a good relationship with a banker, check if he/she can give you lower rates and if they can adjust your payment terms. Believe it or not, you can haggle with banks.

3. Credit score and payment capability

Don’t consider getting a loan when you don’t have a steady income, still have debts to pay, or have no life insurance or investment yet. Get those financial essentials taken care of before you get luxuries like a car. Your credit score will determine the interest rate banks will offer. When you do get a loan, make sure your monthly car payments will not encroach on your day to day expenses, your savings, or your emergency funds.

4. Complete documents

Prepare the following: official bank statements, proof of billing, valid ID, income tax return documents, and credit card statements. Complete all the documents in your dealer’s list and process your documents carefully.

5. Additional Charges

Make sure that you also prepare the money for additional fees like taxes and other extra charges. Ask your bank and you dealer for these so you won’t get blindsided. Get an official receipt when you pay for these fees.