There are basically two types of auto loans: new vehicle loans and used vehicle loans. Used car loans will tend to be a bit more cost-effective than new car loans simply due to the fact that used cars don’t typically lose as much of their value when driven off the lot as new cars do.

Another option, depending on your situation, might be to lease a car rather than purchase one. If you're not sure which option is the best for you, use Bank of America’s website and use the Should I lease or buy a car? Calculator to see where the numbers might fall in your situation.

If you decide to purchase a car, and if you need to take out a loan, you’re likely going to go with some type of financing the dealer offers you or with financing you’ve secured on your own from a bank, credit union or other lender. See 'Getting an Auto Loan' for more about securing financing for your new wheels.