Buying your first car can be very exciting. There's a lot to manage—including figuring out the kind of car you want, deciding to buy it new or used and finding the lowest rate—and you want it to go smoothly. Preparing for your purchase can help make the process easier and ensure you end up with a car that fits your needs and budget. Here are some tips for buying your first car:

1. Assess your needs.
You've seen the car you want on the road. You can imagine yourself driving it, but is it really the car you need? Be honest with yourself and evaluate what make and model is best suited for your lifestyle, the driving conditions of your region and your budget.

2. Set your budget.
Determine how much of a car payment you can afford. In this calculation, bear in mind that there's more to car ownership than just making the monthly car loan payments. Remember to factor in maintenance, insurance, gas and repair costs. Use the Bank of America car loan calculator to help you run the numbers. Knowing how much you will need every month for your new car will help you decide what to buy. Better Money Habits has some useful tips on the real cost of owning a car.

3. Examine your credit.
Check your credit score so you have a clear sense of how credit-worthy you are. Why? Because your credit will help determine the interest rate you pay—which will affect your overall car-buying budget. Better credit will earn you a more favorable interest rate. There are two ways to access your credit history:

4. Determine your down payment.
Assess how much you can pull from your savings to contribute toward a down payment. You typically don't have to make a down payment, but it's usually a good idea. Generally, for every $1,000 you put down, your monthly car payment drops by $20, according to Edmunds.com. And the more you put down, the less you'll have to borrow.

5. Apply for a loan.
Here's an important tip for buying your first car—or your 10th: Shop for a car loan before shopping for a car. While that may seem counterintuitive, it's a great step to take. You'll have an idea of how much money you can borrow and at what interest rate, which means you won't need to make financing decisions on the fly at the dealership. You can start at your bank or credit union, but it's okay to shop around to make sure you get the best rate. You canapply online for an auto loan for free and, if approved, receive loan information and an interest rate quote within moments.

6. Go shopping.
Start your car search online and by talking to friends and family. Check out cars that are in your price range and that meet your needs.

7. Take a test drive.
Once you've decided on a few cars that look good on paper and on the lot, take a few for a test drive. After all, you'll want to see how they perform on the road and how you feel in the car.

8. Get the data you need.
After narrowing your choices, ask multiple dealers to quote you a price. If you're looking at used cars, be sure to ask for a Carfax report on the ones you are seriously considering. This report provides detail on a used vehicle's history—previous ownership, accidents it's been involved in and more.

9. Close the deal.
You've done your research. You know what you want, and you have your financing. When it comes time to negotiate the deal, you're in control. Be sure you understand the terms of any financing or warranty agreement. Then enjoy your new wheels.

Ready to get started? Compare today's auto loan rates from Bank of America.