If you do your homework on used auto loans, you can get a great one. If you don't, you'll probably end up spending as much as thousands extra on interest. A little time is worth it, so take the following steps when purchasing your auto.
First step, plan your budget. Before you start looking for used cars, or used auto loans, you have to know how much you can spend, and when you can spend it. Do you need to find used auto loans that require extra small down payments, or do you prefer to pay more down and less monthly? The lenders can't help you find what you want in used auto loans unless you know yourself.

After you know what you can afford, you can start looking for used auto loans. You'll need to prevent all the providers of used auto loans from running a credit check on you, because this will lower your credit about 5 points every time it is run. To avoid damaging your credit, get a copy of your credit report before going to the lenders of used auto loans. Include the ‘Credit Score' option, and you'll be ready to get accurate information on what rates are available to you. Then you can include the used auto loans cost in interest in your budget.

It is important to find used auto loans before you actually shop for the car, or you'll end up taking whatever the dealer offers you in the way of financing. After you're equipped with the necessary credit information, check out the following sources for used auto loans:
                      The Internet. This is the first place to start looking. You can find used auto loans from the comfort of your own home, and have more offers to compare than you will get anywhere else.
                       Your local bank or credit union. This offers the advantage of being able to apply for used auto loans in person, explain your credit history if you need to. Besides, since they want to retain your business, they'll try to give you a good offer.
                       Your mortgage company. If you're a homeowner, look into taking out a home equity loan or line of credit. This may give you the lowest APR (annual percentage rate) for used auto loans, but one possible downside is that they'll likely require a minimum loan amount, which may be more than you want to take out.
                       The dealership you buy your car from. Generally speaking, this won't be your best option for used auto loans, but they might surprise you. Look for specials, but keep in mind that if the offer seems too good to be true it probably is.
You've shopped for used auto loans, now you just need to buy the car. Make sure, however, that your financing is in place before you sign the papers for the car, and the salesperson won't be able to scam you.

Research the used auto itself as thoroughly as you did the used auto loans. Compare prices online, and before purchasing, get a copy of the vehicle's history from CARFAX, this will let you know if the car has been salvaged, in any major accidents, and other useful information. When you're signing the papers, make sure it doesn't say anything in there about taking the car “as is.” If it does, you're out of luck if the car breaks down on the way out of the lot, which has been known to happen.

Being informed will make finding used auto loans and buying your car easier and less costly. Best of luck with your used car purchase!