Dealers aren't the only places to get a car loan. Sometimes, banks or credit unions offer better interest rates.

Financing your new- or used-vehicle purchase? It's wise to establish how much you can afford to pay per month--before you start shopping. This will help dictate the price range of the cars to consider. But don't lose sight of the total price while attempting to keep the monthly payments low.

Shopping for Your Loan Can Save Plenty of Dollars

Negotiating a good price on a car is just the beginning. Shop for financing (and insurance) with the same dedication and you can save plenty--provided that you qualify for some of the tempting low rates that can be found. If your credit record is impaired, you're likely to wind up paying a higher rate than you might have hoped.

Remember, the interest you pay will reflect the risk that the dealer--or more likely, the financial institution that actually makes the loan--is taking. Only the best credit risks qualify for the zero-percent or low-rate financing that's advertised on TV, offered by a manufacturer's financing arm. For buyers with less stellar credit, annual percentage rates (APR) can reach 20 percent, especially for used cars, and the Better Business Bureau hears of figures far higher.

Most banks used to require a minimum down payment of 20 percent for a new- or used-car loan. But in the recent recession, the minimum down payment dropped dramatically. Most likely, they will have a maximum amount (called Loan Value or Finance Value) that they'll let you borrow for a certain year and model of car. Finance Value is typically about 20 percent less than the normal retail value of the car, so this is a helpful way to tell if the seller is asking a reasonable price.

To determine the current average APR for auto loans, go to http://www.bankrate.com/auto.aspx. The site offers daily-updated rates for 3-year and 4-year loans for both new and used vehicles.

Many, if not most, people who don't qualify for super-low rates can get a better deal by avoiding any dealer's financing and obtaining a loan through a bank or credit union (though most lenders have been easing away from risky loans). And remember, when buying from a private party, you have to arrange your own financing.