Here's an example of a person, Joan, who is considering applying for a car loan.

Know your budget

Know how much you can afford. Joan put together a budget by listing all of her income, planned borrowing and spending. This gave her a better picture of her financial situation. Now, she knows what she can comfortably manage as a monthly car payment.

Calculate your estimated costs

Once Joan knew how much money she could spend on her monthly car payments, she found a handy car loan calculator online to figure out approximately how much money she could afford to spend on a car. Joan was able to calculate different interest rate and down payment scenarios for the car she wanted to buy. This helped her get a clear idea of how much money she needed to borrow and whether it fit into her budget.

Get pre-approved for auto financing

Planning ahead has made Joan more confident. She felt better prepared to help get the best possible rate. Now, she can concentrate on buying her new car.

Important: This profile is for informational purposes to help customers identify ways to make informed financial decisions. The person in the profile is fictional, but based on actual customer experiences. For questions about your specific situation, consult your own financial advisor.