If you cannot afford to buy a vehicle outright, you may have to make monthly payments. If this is the case, you should go to several financial institutions to obtain financing information and loan qualifications. If you do not have any credit or are under 18, you may need to have someone co-sign the loan with you (that means they are responsible for the loan if you default). If you have had a loan, you should request a credit report to see your credit history. A bank will use your credit report to quote an interest rate. Check current interest rates at several banks on automobile loans. Depending on the economy, financial institution, and your credit history, interest rates commonly range from 3.9 to 15.9%. However, automotive manufacturers may offer interest free (0.0%) or low (0.9 to 2.9%) interest loans to qualified buyers. The interest rate makes a big difference on the overall price you pay for your vehicle. The following calculations are based on a loan of $6,000 for 36 months with interest rates from 3.9% up to 15.9%. Understanding interest rates is a necessity if you plan to borrow money. Once you have researched and mastered this, you will better understand what you will really be able to afford. Finding the lowest interest rate can save you hundreds or even thousands of dollars.