<prompt> Human: So my car has recently been deemed a salvage, so Ill need to buy a new car to avoid the sudden spike of insurance thats going to hit me. That being said, Im 24 and have absolutely no idea what Im doing; Ive scheduled test drive appointments at a few dealerships to get a feel on which car Id be most happy with, and Ive gotten Internete-Pricing quotes on them as well. Once I finally sit down and get a feel for things, however, Im not really sure what to do next. To my understanding, financing means, effectively, paying for the car in installments with interest, since its basically a loan. Does that mean I can finance a car via my bank? How does it work, and what should I go with? Any advice at all would be appreciated.Assistant: Go to your bank and get approved for a car loan.Then go find a car you want to buy that costs less than the loan you were approved for.Human: Then go find a car you want to buy that costs less than the loan you were approved for. Just to emphasize, if you get approved for a 30k loan, it doesnt mean great, I can afford that 30k car I really wanted! It means you still have to divide the total by the months and determine whether your income and expenses can actually afford that payment, plus any additional insurance make sure you have full, comprehensive, collision, liability and UIM. And gap if there is one.. Buying an 18k off-lease is still less expensive, even if the bank says you can afford a 30k car. Assistant: Shouldnt I first determine what the price is, before I get a loan? That way, I can borrow just what I need, and not have extra just sitting around and doing nothing. Itd also keep the loan interest smaller, wouldnt it?  <response>: Going to a bank first just pre-approves the maximum you can get, it doesnt lock you into the amount. This is so you can get an understanding of what your max car price is. Once you and the dealership agree on the price that will be what your loan is, regardless what you were approved for. 