New vehicle buyers-facing an average price of more than $22,000 today for a car, truck or van-average new-vehicle loans of more than $17,000.

Buyers of used vehicles average nearly $10,000 on their purchases and often need financing help, too. So it's important to weigh all the financing choices available.

• Research financing options and prequalify for a loan before visiting dealerships to shop for a car
• Establish the price of the vehicle and the value for your trade-in before you discuss financing.
• Compare interest rates and other terms available from several sources so that you know the interest rates and options that are available in the market.
• Develop a working knowledge of financial terms and arrangements.

Where to Shop
"For the most part, car loans are interchangeable. All you really want to do is get the best price," consumer advocate Jack Gillis said in an interview with MSN Autos. Author of The Car Book, and Director of Public Affairs for the Consumer Federation of America, Gillis recommends investigating as many financing options as possible before making a choice.

On the Internet
The Internet is a good place to begin the process of obtaining general information about the rates and contract terms that are available in your area. Many finance sources accept applications over the Internet, and if your credit history is good, you may even be able to complete the entire transaction from your computer.

Some finance sources will respond to your loan application via e-mail and you may even be able to have a check by the following business day to take with you to the dealership. Other sources will accept your application via the Internet and then you will need to complete other documents or schedule an appointment to finalize the details.

Jack Gillis told MSN Autos "The benefit of shopping for financing online is that it will be easier to find more choices. You still need to evaluate the terms the same way you would when comparing traditional finance sources."

Automobile Dealerships
Financing your car purchase through the dealer is often the most convenient option, and it could also be the best option financially. Dealers often have access to special rates from the manufacturer that could be lower than other available rates.

Dealers also typically have a number of different financing sources, so even if there are no special manufacturer rates available they can compare between sources to find the most competitive current rate. If you have done your research and know the best rate you can obtain from another source, you're ready to evaluate the options available to you from the dealer.

"From a convenience standpoint, it's a one-step deal," said Rob Mancuso, vice president of Western Diversified Insurance Group (providers of automotive finance and insurance services) and a consultant to the automobile sales industry. "Typically, you can get a loan approved while you're at the dealership, and a dealer can shop rates quickly, usually just by sending a fax," he added.

Convenience doesn't necessarily cost more than shopping lenders individually. "Usually the difference [in interest rates] is less than a point and often it is the same rate you would find at a bank or another lender," said Mancuso.

Indeed, subsidies available to dealers from manufacturers can allow a dealership to undercut a local lender. "Subsidized dealer financing may be your best bet," Jack Gillis told us. But beware. The very low rates dealers often advertise to attract customers are typically available only on short-term, 24-month loans, and payments on those can be too high for many buyers.

Credit Unions
Credit unions operate to provide services to the members, and interest rates are generally lower than at other loan sources. If you are a member of a credit union or can join one in order to get a loan, it may be your best source for competitively priced financing.

"Credit unions are nonprofit by nature, and making loans to members is the safest way for them to generate revenue," according to Susan Tiffany, spokeswoman for the Credit Union National Association, the nation's largest organization of credit unions. A Seattle-area credit union vice president added, "Their sole purpose is simply to continue service to their members, so they just need to cover operating expenses."

Commercial Banks
Commercial banks are also very active in the auto loan market, typically offering rates that are somewhat lower than the standard rates through a dealership, but generally higher than credit union rates, according to Christy Heady, spokeswoman for Bank Rate Monitor, a financial data gathering organization. However, Heady cautioned, "This is not necessarily the norm; it varies according to local markets."

If you already have an established relationship with a bank through existing accounts or other loans, you may be offered a rate that is lower than the rates that are generally advertised or posted by the bank. Be sure to check with any institution that you are already doing business with to see what options they have to offer.

Local banks and savings and loan institutions may offer more competitive rates than larger commercial banks, depending on current market conditions. But, said Heady, "it all depends on local markets and competition." For instance, some banks give lower rates to customers who open, or already have, checking and savings accounts with them.

Finance Company
Another option is to obtain a loan through a finance company. For individuals whose credit rating is considered "sub-prime," working with a finance company, either directly or through the dealer, often makes it easier to secure a loan. In such cases interest rates tend to be a bit higher than at a bank or credit union due to the higher risk associated with such applications.

However, it should be noted that in the world of credit, "sub-prime" is actually the rule rather than the exception, sources told MSN Autos. The majority of car buyers�approximately 60 percent�are classified as sub-prime. In many cases, all it takes is a 60-day overdue payment to earn a sub-prime rating. Only 40 percent of consumers have a squeaky-clean credit rating.

Unconventional Loan Sources
If you own certain types of life insurance you may be able to borrow against the current cash value of the policy. "You can borrow against any policy that has a cash value," said financial planner Howard Johnson, a senior advisor with American Express Financial Services. "Typical borrowing costs�interest rates, in other words�range from zero to 2 or 3 percent," Johnson said. These are considerably lower than even credit union rates.

Financing your car by this method will allow some flexibility in your repayment schedule because regular payments aren't obligatory. Of course, to restore the cash value of the policy you must repay the amount you borrowed, plus the interest. But if you don't make payments, the interest fee simply is deducted each month from the policy's remaining value. "You just have to be careful that you don't cause the policy to lapse," said Johnson.

Another unconventional financing source for vehicle financing is a home equity loan. The difference between the market value of your house and the balance of any existing mortgage is available as collateral for a loan. Interest rates on home equity loan rates are often lower than for conventional loans, and you may be able to deduct interest amounts you pay on home equity loans from federal and some state income taxes. Be sure to consult with your tax advisor.

However, setup fees for home equity loans may outweigh the difference in interest rates from other conventional sources and may exceed any tax savings.