Your car is making funny sounds and you just know the repair bill will be a killer. You have already dumped more money into your ride than you want to think about. Perhaps it is time to consider a replacement?

If you are ready to get a new car, but fear obtaining a loan under current economic conditions will be impossible, think again. There are ways to obtain funding, but it will require good credit on your behalf. Should funding be impossible to find, there are workarounds for getting at least a better car in the present economy.

Before heading out to look at new vehicles to replace your clunker, you can check your chances of getting a loan by:

Pulling your credit report – This is a very good idea to do on an annual basis for general principles. Pull your reports and see how you are faring. If there are problems, try to fix them.

Considering your debt to income ratio – Banks will be very interested in making sure a borrower can in fact repay. This is often determined by debt to income ratio. If yours checks out, you will look more attractive to lenders. Should it be dismal, consider paying off some debts before seeking funding.

Trying for preapproval – It is not a bad idea to have a loan offer in hand before looking. This can help you cut through the red tape at dealerships. Plus, it will help you keep your search for cars well within budget.

Now, if you have tried and just cannot get funding no matter what you do, there are still options available to you. Consider buying used, producing a larger down payment or even shopping for newer cars in a lower price range.

Needing a new car right now can be frightening. Still, there are ways to make sure you drive off a lot with something better than your old clunker.