If you are refinancing a used car or looking for financing on a new car, stop and take a moment to look over these tips. It will save you money now and down the road. Financing a new car means you are entering a contract with a bank, one that says you will pay interest on a loan for a set number of years.

The interest rate you pay greatly affects how much of the principal balance you pay off. That also affects how much money you will receive towards another car when it comes time to trade it in.

If you want to get more back from your car, follow these tips to better auto financing and refinancing today.

1. Seek your own car loan financing from a bank or credit union. Don't shop unknown banks just because they have lower rates. They may also have longer terms. A larger bank will give you a great rate, and you won't pay for the dealer commission on the sale of the auto loan.

2. Finance for a shorter loan term of 48 months or 60 months. This way you are forced to pay more on your car each month. That might not seem like a bonus, but it will be at trade in time. Your principal car loan balance will be much lower (because you paid more off) and you'll end up getting more real money back on the car.

Some car loan banks love to stick people with long loan terms because they know they'll be earning a lot of money on the interest. Don't get caught in this trap. When you trade in you'll be adding several thousand dollars more to the price of your net vehicle

3. Get a lower interest rate car loan. Many people don't realize how much the interest on a loan adds up. A simple percentage point in interest rates can amount to thousands of dollars over the course of five years.

With a longer term loan of 72 months you'll be spending more than double the price of the entire car on interest alone! Get your credit report, work on it and then buy that new car. Don't get stuck with a loan you can't afford. Simply drive that old beater a few more months while you pay down credit cards and boost your credit score.

4. Shop around for that new car loan to several sites and don't worry about having your credit pulled too many times. It does lower your credit score when someone pulls your credit but it only lowers it by about 5 points!

That's not enough to affect your interest rate or prevent you from getting a loan. Banks don't want you to shop for a car loan, nor does the dealer. They want you to buy today with their financing terms so they can collect their commission. Don't fall for it. Do you own car loan shopping today.

Shop for a lower car loan rate today! You'll appreciate getting a much lower payment, better terms and you will be able to pay the car off much faster and enjoy no car payments at all!