You've decided to acquire another vehicle—great! Before rushing off to the dealership, you'll need to consider how much you can afford in monthly payments. Deciding this point will determine whether you look for used or new auto financing in Texas.

Once you know about how much you can afford in monthly payments, it's time to think about what type of loan you want from Texas car credit companies. Options for financing a car in Texas include loans for autos, new vehicles, used vehicles purchased through a dealer, private party vehicles, refinance, and lease buyout.

Keep these points in mind when choosing a company specializing in auto loans in Texas:

1. Do I want to buy from a car dealer or from a private seller?

2. Do I want to purchase outright or lease? Lease buyout loans are commonly required at the end of the lease period.

3. Will I be paying off my loan on-time or early? Some loans carry stiff prepayment penalties.

Action Steps
The best contacts and resources to help you get it done

Learn about Texas auto financing

Study the different types of Texas auto financing solutions. Each one will have pros and cons, depending on your situation. Get familiar with how a lease works, read cautions about financing an auto directly through a dealer, and get tips on how to fix less-than-perfect credit.

I recommend: The sections of Auto Education provide you a quick guide to the steps involved in buying and financing a car.

Get Texas automotive financing even if your credit isn't so great

If you have had credit problems in the past, does that mean you're reduced to driving whatever you can afford to pay for with cash? Not necessarily. Some companies making car loans in Texas specialize in customers with bad credit. Many Texas vehicle financing companies have partnerships with car dealers prepared to offer bad credit car loan programs on car and truck loans. You may be able to pre-qualify for a bad credit auto loan regardless of past credit challenges.

I recommend: Several companies work specifically with bad credit cases. These include Auto Net Financial, People's Auto Finance, and Credit Loan.

Have one company do the legwork of finding Texas car credit

The Internet has revolutionized how we do a lot of things, including how we look for auto loans. Look for websites that are secure, first of all. Next, verify that you are under no obligation if you enter your information on a website. Bottom line, use the ease of the Internet to make Texas auto financing fast, easy, secure, and hassle-free.

I recommend: Auto Credit Finders can put an end to applying at several sites on the Internet and driving all over town trying to get the best deal on your auto loan.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Be extremely careful with your personal & business information while doing research on financing a car in Texas. Make sure you are dealing with a reputable company with a good track record to prevent possible theft of your identifiable information.
• •  Research, research, research. Get quotes on automobile financing in Texas from several providers.
• •  Be wary of Texas automotive financing car dealers claiming to specialize in financing bad credit loans. Make sure the vehicle is actually worth the stated price. Some dishonest dealers artificially inflate a vehicle's price, generously reduce that inflated price, and finance the balance at high interest rates.