Pre-approve before you walk onto the dealer lot.

Almost always from a bank or credit union — and ideally before walking onto the dealer lot. Dealer-arranged financing typically marks up the wholesale rate by 100-200 bps, with the dealer pocketing the spread as F&I commission. A pre-approval letter from a direct lender gives you leverage to either bring your own financing or force the dealer to beat your pre-approved rate. The exception: manufacturer 0% APR promotional financing on new models can beat any bank loan when genuinely available.

Multiple auto-loan credit inquiries within a 14-day window count as a single inquiry for scoring purposes (newer FICO models extend this to 45 days). You can shop 3-4 lenders in the same week without compounding score impact. Pre-qualification at lenders like Capital One Auto Navigator costs zero credit impact since they use soft pulls. The rate improvement from shopping (100-200 bps for prime credit, more for subprime) far exceeds the small inquiry cost.

For 2026 new-car loans, top-tier rates (typically 5-7% APR) require 720+ FICO with strong income and 10-20% down. 660-719 FICO sees rates roughly 100-200 bps higher. 620-659 FICO sees 200-400 bps higher with narrower lender selection. Below 620 you're in the subprime market where APRs commonly exceed 12-15%. The single highest-leverage move is paying down credit card balances to under 30% of limit 60-90 days before applying.

Run the math two ways. First, will the new APR be at least 100 bps below your current rate? If yes, refinancing usually pencils. Second, what's the remaining loan balance and term? Refinancing $30K remaining at 9% APR down to 6% APR saves roughly $2,400 over a 48-month remaining term. Refinancing $8K remaining with 18 months left rarely saves enough. Refinance makes the most sense 12-24 months after the original loan when (a) balance is high enough for APR improvement to compound, and (b) credit has improved.

At minimum, enough to ensure you're never upside-down on the loan. New cars depreciate 15-25% in year one and 30-40% by year three. A 10-20% down payment + 48-60 month term keeps your loan balance below the car's value through most of the loan. With 0%-down 84-month loans, you can be upside-down for 4+ years. GAP insurance covers some of that risk; a meaningful down payment is the cleaner fix.

Yes, but expect significantly higher APRs (often 12-25%) and tighter loan structures. Lenders like Capital One Auto Navigator and some credit unions accept down to roughly 580 FICO. Below 580, you're often funneled toward dealer-arranged financing where APRs can exceed 20%. Better strategy: defer the purchase 6-12 months while building credit (pay down balances, on-time payments) — the rate improvement on a $30K loan can save $5,000+ over the life of the loan.