You probably can't pay cash for a new car. (Even if you could, it might not be the best method to purchase a car in today's low-interest environment.) You probably will have to borrow the money to buy a car and, if you've worked through your budget considerations, you know about how much you can afford to pay toward your car every month. Your next step is to get ready to find a loan—you will be in a much better and stronger negotiating position if you are approved for a loan before you shop for a car. Many lenders offer pre-approval, allowing you to shop knowing that you have the money.

Before you apply for a loan, you should understand your credit worthiness.
Know how much you can afford to spend
Use the Auto Loans calculator to find out how much you can afford to pay based on your monthly payment.
To compare the advantages of low interest financing or manufacturer rebate go to the Auto Rebate vs Low Interest Financing calculator.
Use the Low Interest Financing Savings calculator to help you find the best monthly payment.

What to Look For In a Loan
Where should you go? You will want to find the best terms, so shop for your loan! Check out at least two loan sources:
ou belong to a credit union, ask about the loan rates there. Credit unions typically charge a slightly lower interest rate than banks.
Call the car loan departments of large financial institutions, such as Citibank or Bank of America.
Internet sites advertise car loans.
Financing through the car dealer or manufacturer may be a convenient option. Be careful, though, that you understand the parts of the whole deal if the purchase price is negotiated along with the loan terms.
Another option is to ask your bank about a home equity loan. If you own your home and borrow against the equity, the interest on your loan is tax-deductible.
If your credit is insufficient, you might have to ask someone to co-sign your loan.
Focus on the numbers when you shop for a loan.

Some basic questions to ask when you explore loan choices

What interest rate can you offer?
he loan contract and be sure you understand every word. If you don't, ask for clarification. Consider all of the numbers in the context of your budget considerations.

Use an automobile loan calculator to see what your monthly payment will be with specific loan amounts, interest rates, and terms. You can find such a calculator at http://www.bankrate.com. Be clear about these numbers before required, but also very expensive. Public transportation can possible to rent a car to explore California for weekends or vacations. Be sure to see the SISS handout Buses, Bikes and Other Transportation and the handout on Auto Insurance to help you make your decision. The Department of Motor Vehicles has a website with very detailed and helpful information at http://www.dmv.ca.gov/. The phone number for general information is (800) 777-0133.

From the City Carshare website:

"City is a nonprofit organization whose mission is to promote car-sharing as a means to reduce automobile dependence and to enhance the environmental and social integrity of our urban neighborhoods and planet.

"Car-sharing allows you to use a car when you need it without incurring the fixed costs on a per-use basis. You pay based on how much you drive: $4.00 per hour (half off between 10pm and 10am) and 44 cents a mile. The fees include gas, insurance, maintenance, everything!"

City has entered into a partnership with UC Berkeley. Read more about it at their website: http://www.citycarshare.org.

AUTOMOBILE INSURANCE
Drivers of automobiles, motorcycles, and other motor vehicles have a financial responsibility in case of an accident that involves injury or death, or damage or another vehicle. DO NOT DRIVE WITHOUT INSURANCE! There can be very serious legal and financial consequences if you do not have insurance. Refer to the California Driver Handbook (available at the office) for the State of California's legal minimum requirements covering personal liability and property damage. See also the SISS page on Auto Insurance.

Note: The DMV has informed that it is best for international students and scholars who do not have a Social Security number/card (SSN) to apply for that card first, then wait at least 30 days before applying for a California Drivers' License. This is to provide sufficient time for the SSN to "hit" the DMV database.

you should register your car in California. However, this may be very expensive if your car does not meet the California emission standards to pass the "smog test". Call DMV to find out what is required to register your car.

They also have a website at www.consumerreports.org that has information on insurance, buying a car and other advice, for a small subscription price. Additionally there is an excellent website at www.consumerworld.com that has information on buying a car. When you go to look at a car, take along a friend who is know-about purchasing and evaluating a car.
size, or manual ("stick shift") transmission, and so on. Spend time looking at different cars and models, compare basic prices and added "option" costs, and get advice from experienced car buyers, not just from the salespeople. You may want to consult a "broker" (check Automobile & Truck Brokers in the phonebook yellow pages). If buying from a dealer, always ask for the best price. Nobody pays the "sticker" price, whether new or used, always bargain!

the buyer must be willing to assume the risk of car trouble and repair costs, as no -ties are given. Contact your bank branch for a book called The Blue Book which gives average prices for used cars for different years and models. You will probably be able to get the best deal on a car from a private person who advertises in the classified ads of local newspapers. Be sure to check the free, weekly papers: the Express and Classified Flea Market( www.cfm.com). Any reputable person selling a used car will allow you to take the car to a garage mechanic not associated with the seller for a thorough inspection (called a "diagnostic check"). Mechanics usually charge $50-60 for this ser-vice. Check in the Yellow Pages of the telephone directory for the phone numbers of local garages, or contact the California State Automobile Association (: http://www.csaa.com). Call first to inquire about rates and to make an appointment. anyone asking you to bring dollars! IT CAN BE DANGEROUS TO CARRY LARGE AMOUNTS OF MONEY WITH YOU.

Financing a new or used car. Whether buying a new or used car through a dealer, compare the cost of different methods of financing. Loans may add 20-30% to the total price of the car. If you should decide to buy on credit, it is best to do so through a credit union, bank or savings and loan association. And remember, before signing any documents, make certain that you understand all the details of the sale and payments required. Keep copies of all documents.
you must be given a certificate of ownership, called the "pink slip" by the dealer or previous owner; it must be signed by them, and your name indicated on it as the new owner. You will need this slip to register your car or to sell it later. Additionally, you need a smog certificate (proof that the car meets the state requirement for the exhaust emissions). The seller has to have this certification done at the time you purchase the car.

Vehicles (DMV). Take the car, the pink slip, and the white copy to the DMV. New-car and some used-car dealers take care of registering the cars they sell. Upon payment of the registration fees, which vary according to the model and age of the car, a temporary registration slip will be issued and ownership recorded. An official registration slip will be mailed to you. Used cars keep their license plates, so you do not need to remove them. Auto repair firms are required to post their licenses along with a sign showing the phone number and address of the California Bureau of Automobile Repair. If you think you are being cheated, call the Bureau. The law requires that:

-You are provided with a written estimate of how much the repair work will cost (cost n invoice (bill), must be given to you, with all work and parts itemized;
-You must be given the worn-out parts if you ask for them before the work is the "meter maids" patrol the campus area and will ticket you if the meter expires, or if you do not move your car after parking for two hours. Watch out for zones (especially on Hearst Ave.)! It is very expensive and inconvenient to have your car.. Driving under the influence of alcohol or drugs (DUI) is an especially serious offense. If you do not pay a ticket, penalty fees will be added and you can be arrested. If you are issued a "moving violation" you can go to "Traffic School" ($25-$75) to keep the ticket from affecting your insurance, but you still have to pay the fine.