But most people need to finance their car purchases-the things just cost too much. So, keep in mind that the best approach to financing a car purchase is different than financing real estate:

• When you're buying a car, the best strategy is usually to borrow as little as you have to in order to get least-expensive car that fits your needs. This, effectively, means making the largest down payment you can.
• When you're buying a house, the best strategy is usually to borrow as much money as you can afford to buy the most house you can. This means making the smallest down payment that you can.

• The best strategy is to drive the best car-new or used-that you can afford to buy for cash.

  Simply said, paying interest to buy a depreciating asset means you're losing money two ways: in the interest and in the lost asset value. You should borrow as little as possible for the shortest period of time you can afford

   While you can get a loan for a vehicle through the dealership that sells it, you should compare the interest rates and terms available through banks, on-line lenders and credit unions, too.

But don't mention financing when you're negotiating the price of a vehicle. Keep the initial talks focused solely on the total cost of the car or truck. (Likewise, mention trade-ins later-after you've finished negotiating the vehicle's purchase price.)

Just as with a home loan, the longer the term of an auto loan, the lower your monthly payment-but the higher the total amount of interest you'll have to pay.

The biggest decision, when you're shopping for an auto loan, is the length of the loan. Most auto loans today require from 36 to 60 months worth of payments. In other words, they're three-, four- or five-year loans. (You'll also find some two- and six-year loans; but they are less common.)

If you have a tendency to trade-in or sell your cars every two or three years, you should rethink your priorities. But, if driving a new car so often is important to you, avoid the longer-term loans and their low payments. You may owe more than your vehicle is worth if you try to sell it after two years and you have a five- or six-year loan.

Interest rates are usually higher on used car loans than on loans for new vehicles. This and other factors actually can make it cheaper for you to finance a new vehicle. An exception: so-called "certified, pre-owned" programs which sell high-quality used cars on terms very close to those of new cars.

When you're comparison shopping for your loan, you also may want to have it quoted with several different down payments. A higher down payment will reduce your monthly payments, and it also may reduce the interest rate on your loan.

However, you may find that the difference in monthly payments between a $1,500 down payment and a $3,000 down payment is insignificant over the course of a five-year loan, in which case it probably pays to hold onto your money for now.