Zero-percent financing is back -- page 2

Keep in mind that any car buyer can scoop up a cash rebate, but not everyone qualifies for zero-percent financing. If you have banged-up credit or little credit history, you may not qualify for an interest-free loan.

Think price first
Whatever incentive you choose, it's important to negotiate the price of the new car as well as the price of your trade-in.

Autoweb.com, Edmund's Automobile Buyers Guide, AutoSite, Autopedia, Kelley Blue Book and CarPrice.com are among the sites offering timely pricing information. Do your homework.

Be sure to visit several Web sites when researching pricing information. Information may vary from site to site. When in doubt, contact an auto manufacturer directly.

Don't forget to ask about regional incentives in your area. You could save hundreds, maybe thousands, more by snapping up a regional incentive. And some regional offers give you the best of both worlds: a cash rebate on top of a discount financing deal.

As tempting as a dealer's discount financing may seem, don't overlook deals from local banks and credit unions. Bankrate.com's auto loan search engine will help you compare car-loan rates in your area.

It's wise to have an auto loan ready to go before you set foot in a dealership. That way if a dealer wants your financing business, he's going to have to beat the best rate you've found on your own.

Here's one last tip, and it's an important one. It's best to think of a new-car purchase as three separate negotiations: the price of a car, the price of a trade-in and the financing. A car salesman will try to lump this stuff together. Don't let him.

If you do, you might not notice when the purchase price of the car gets bumped up or the trade-in value of your old car gets knocked way down.

Some dealers might even tell you that you can't have zero-percent or any discount financing without paying sticker price. Don't fall for it.

Insist on three separate negotiations and get the best deal you can on each one. Shop as many dealers as necessary to land the deal you want. The best way to land a good deal is to make dealers compete against one another for your business, and to ask the right questions.