Why I don't think you should loan money to buy a car
In almost all ads that you see for cars for sale you will hear talk about the interest rate. This is because it has become common for people to borrow money to pay for a new car. Whether you want to buy a new or a used car, it really isn't a good idea. A car is not really the sort of thing that you should be borrowing money to pay for.
The main reason that you shouldn't use a loan to buy a car is that the depreciation on a car is so high. Everybody knows that the second that you drive the car off of the lot its value drops dramatically. Borrowing money to make the purchase just makes this worse. If you take a loan you are significantly increasing the cost of the car when you factor in the interest payments that you have to make. If this money was going towards something that would increase in value it would be a good deal but in the case of a car it really isn't.
It is not really a secret that most car dealers actually make more money off of financing than they do from the actual sale of the car. That is something to think about if you are thinking about using a loan to pay for your new car. Obviously that money comes out of your pocket so you should be able to recognize what a bad deal it is for the consumer if it is such a good deal for the people selling the cars.
The reason that most people choose to borrow money to buy a car is that they really can't afford the car that they want. This is a problem in itself since people are spending more than they can really afford to. It is much better to wait until you have saved enough money to pay cash for your new car. This will help to keep you from spending more than you can afford on a car. Even better would be to buy a good quality used car rather than a new one since the depreciation won't be nearly as big.
If you are going to borrow money when you are looking to buy a car make sure that you get the best interest rate possible. Often this will come from some place other than the dealer; there is no reason that you can't get a loan for a car from your bank rather than the dealer. One thing to be careful of when you are buying a car is to make sure that you negotiate the price and the loan terms separately. Many dealers will give you a good deal on the car and then soak you on the loan. Get a price on the car and then go shopping for loans to make the payments.