Getting a car loan used to be very easy. You don’t even need to visit a lender before you shop for a new car as most car companies offer financing or they are tied up with another lender that could offer you a reasonable rate.

The current car loan scenario is very different. Instead of car loan companies going after those who wanted to purchase a new or used car, the consumers are now going after them. This situation would have repercussions to the disadvantage of the consumers.

The usual scenario for those who wanted to purchase a new car goes like this: you first shop for your preferred car and when you find a good one, you start looking for a lender. But after a week or two of visiting different lending companies, you are often denied because something is wrong with your account. They will always find a reason why they have to deny your application. When you have waited for a week or two (sometimes a month); they will get in touch with you with a very high interest rate. You have no choice but to agree to their terms and conditions because you can’t find anything else.

If you do not want to go through this ordeal, here are the following things that you can do:

Improve your credit rating – Those who are currently on good credit can’t even get a decent loan so the chances of getting approved for a car loan with a bad credit are slimmer. Before you visit banks and other lending institutions for a new car, make some movements that show you are working on your credit status. If are on bad credit rating, you can at least show to the lender that you are trying to update your payment on other bills.

Get pre-approved – A good way to ensure that you are going to have an available car loan, get pre-approved first before you shop for a car. This will give you the idea on what type of car you should be getting since you know the amount of loan that you can get. This is the highly recommended approach especially on the current economic conditions. It’s very frustrating that you have found a good car but your budget will not allow it.

There’s actually a good side for the current auto loan conditions. Because of the economic troubles, car companies are not slashing prices to entice more customers. You can literally shop around for great cars if you have been pre-approved for at least $15,000 after taxes.

Since the screening process is very difficult and many individuals have been denied, the ones that are left have good credit rating or have been aggressive in seeking pre-approval. If you are part of the latter group, you will still enjoy a great deal with a relatively high interest rate.

If you really wanted to save on your car loans, go for used cars. The demand for car loans has dwindled which has also affected used car loans industry. Just make sure that you are getting a good car. Sometimes you could be scammed since you are given a good deal but your car could break down in just few weeks. Have a good friend take a good look at the car if you’re not familiar with cars.

Grab the opportunity of getting a new or used car right now. Although it’s very challenging a loan, the hardship is worth it. As long as you get pre-approved, you should be able to get a car that you want right now.