If you intend to finance the purchase of a car, there are several steps you can take to get an auto loan. Follow these tips to find the best possible loan that you qualify for.

Correct Any Credit Mistakes

Before you apply for an auto loan, first check your credit history with each of the major reporting bureaus. You can request a free copy of your credit history from each bureau once per year, and there are two important reasons to do so.

First, you should make sure there are no errors on the report that are bringing your credit score down. If there are mistakes, you explain the error and ask a reporting bureau to remove it from your credit history. This will ensure that no wrong information is bringing down your credit score when you apply for a loan.

Second, you'll see what specific factors are affecting your credit score — and you might be able to improve some of the items. You can't make a late payment immediately disappear from your history, but you can pay down outstanding debt that's bringing down your credit score if you have the funds to make a payment on it. This can help improve your score.

If either of these actions helps improve your credit score, you may be able to get an auto loan with a lower interest rate.

Pay as Much as You Can

At the time of purchase, put as large a downpayment on your new car as you can afford to. A larger downpayment will reduce how much you need to borrow, which can both shorten the duration of your loan and lower your monthly payment. You might also get a slightly lower interest rate if you put a substantial amount down.

Apply at the Right Time

Many of the factors that determine the conditions of your loan relate to your personal situation, but not all do. The interest rate market and an automaker's sales also influence what the going rates for auto loans are.

If you don't need a new vehicle immediately, you can take advantage of these other factors by waiting until interest rates are favorable. 

Determine what type of car you'd like to buy, and talk with a salesperson at a dealership that sells the model you want. Let them know you want to wait until interest rates are low, and have them call you when they have excellent loans available. They can then let you know when a good auto loan deal becomes available.