If you are in the market for a new or used car, it is important to do your homework before you start the car buying process.  The first place to start is to know how you are going to pay for it.  For most people, that involves getting a car loan.

For years, I would make the mistake of relying on the car dealership to provide financing resources in the car buying process until I learned a better way to go about the process.

This gives you a huge advantage for the following reasons:

1. You know ahead of time that you have the very best rate.  Without knowing, you could end up paying 1% to 2% more in interest than necessary.
2. The dealership might match the pre-approved rate or even give you a better rate in order to close the deal
3. There are no surprises in the finance manager’s office.  You have already been pre-approved.

You can always go to www.bankrate.com and check out the going rates on car loans.

I have discovered an even better resource.  The United States Pentagon has a credit union that anyone can join. If you or anyone in your family is ex-military, you can join for free.  I have found that their rates are unbeatable.  They are also extremely easy to work with in the car buying process.

For more information about the credit union, visit their site at www.penfed.org.