When it comes to the options available for car buyers, it seems endless. Especially since lenders are competing more and more for your business. Preparing yourself with the proper information will ensure that you get the right lender for you. When interest rates are on the rise, be sure to compare loans from different lenders to get the one that suits your needs.

Here are some questions you should be asking your prospective lender:

Call ahead and find out if the lender will need things like income statements, a list of employers, or account numbers. Having this information available, if needed, before you go to the lender will ensure that things move more quickly.

The larger the down payment you make, the less your loan will be, making it easier to pay off. Generally, for every $1000 worth of down payment you make, you reduce your monthly payment by about $50 every month. A good down payment can also help you avoid going upside-down on your loan (owing more on the loan than the value of the car). Even if you don�t have enough saved up for a down payment, you still have many options.

Having a good credit rating can help your chances of getting a lower interest rate. When dealers offer zero percent financing it is usually only available to those with outstanding credit ratings.

Your monthly payment is going to involve the principal, interest, taxes, and other fees depending upon the policies of your lender. If your monthly rate is to high, you may consider lengthening your loan term. However, this will involve more interest charges down the road.

The lender and your credit score are the two largest factors that will effect your interest payments. Shop around, because the interest rate can vary greatly from lender to lender.

You APR (annual percentage rate) will generally be higher than your interest rate because the interest rate is figured in, plus other fees. Use APR to compare between lenders because this should give you the most accurate contrast.

The best way to avoid going upside-down (owing more on your loan than the value of the car) is to make a sizeable down payment. This will reduce the amount of your loan and assure that you are ahead of the game.

Find out from your lender if you are allowed to make extra payments. Some lenders will charge a fee or have some other penalty for extra payments. In the long run, assuming there are no fees or they are low, paying extra will help you pay off your loan faster in the long run. Just make sure that your extra payments are going towards the principal and not the interest.