nless you plan to plunk down cold, hard cash for your next car - and if you've ruled out leasing - then you are one of millions of car buyers annually to finance their purchases through conventional auto loans.

If you are among this group, then you should prepare for a car-buying experience that will include two separate purchases - one for the car and one for the loan. Each involves a separate product and each should be researched and shopped for separately.

If you've never shopped for a car loan - or even if you have but didn't feel you got the best terms - here are a few simple tips:

"For the most part, car loans are interchangeable. All you really want to do is get the best price," consumer advocate Jack Gillis said in an interview with CarPoint. Author of The Car Book, and Director of Public Affairs for the Consumer Federation of America, Gillis recommends investigating as many financing options as possible before making a choice. Other consumer advocates agree.

Telephoning and searching the Internet for information usually work for obtaining ballpark figures. But when you get serious, make an appointment and visit loan officers in person.

As for where to shop, there are quite a number of alternatives, ranging from the dealer where you buy the car to credit unions to banks.

While your first impression may be to forego dealer financing as being more expensive than other kinds, it pays to consider the option carefully.

"From a convenience standpoint, it's a one-step deal," said Rob Mancuso, Vice President of Western Diversified Insurance Group (providers of automotive finance and insurance services) and a consultant to the automobile sales industry. "Typically, you can get a loan approved while you're at the dealership, and a dealer can shop rates quickly, usually just by sending a fax," he added.

Convenience doesn't necessarily cost more than shopping lenders individually. "Usually the difference [in interest rates] is less than a point and often it is the same rate you would find at a bank or another lender," said Mancuso.

Indeed, subsidies available to dealers from manufacturers can allow a dealership to undercut a local lender. "Subsidized dealer financing may be your best bet," Jack Gillis told us. But beware. The very low rates dealers often advertise to attract customers are typically available only on short-term, 24-month loans, and payments on those can be too high for many buyers.

Interest rates at credit unions generally are lower than at other loan sources. If you are a member of a credit union or can join one in order to get a loan, it generally pays to shop there.

"Credit unions are nonprofit by nature, and making loans to members is the safest way for them to spend money," Susan Tiffany, spokeswoman for Credit Union National Association, the nation's largest organization of credit unions, told CarPoint. A Seattle-area credit union vice president added, "Their sole purpose is simply to continue service to their members, so they just need to cover operating expenses."

Commercial banks are also very active in the auto-loan market, typically offering rates that are somewhat lower than a dealership's standard rates but generally higher than credit union rates, according to Christy Heady, spokeswoman for Bank Rate Monitor, a financial data gathering organization. However, Heady cautioned, "This is not necessarily the norm; it varies according to local markets."

The same holds true regarding auto loans from banks of different sizes and types. The rule of thumb is that interest rates and other fees are lower at smaller commercial banks and at savings and loan institutions (S&Ls, or thrifts) compared to larger commercial banks. But, said Heady, "it all depends on local markets and competition."

For instance, some banks give lower rates to customers who open or already have checking and savings accounts with them.

If you own whole, variable-universal or universal life insurance, you can talk to your insurance agent about borrowing against the policy's cash value - the amount the policy pays out if you die.

"You can borrow against any policy that has a cash value, except term insurance," said financial planner Howard Johnson, a senior advisor with American Express Financial Services.

"Typical borrowing costs - interest rates, in other words - range from zero to two or three percent," Johnson said. These are considerably lower than even credit union rates. Paying back an insurance loan is easy, too, because regular payments aren't obligatory. Of course, to restore the original cash value of the policy you must repay the amount you borrowed, plus the interest. But if you don't make payments, the interest fee simply is deducted each month from the policy's remaining value. "You just have to be careful you don't cause the policy to lapse," said Johnson.

Another unconventional financing source is a home equity loan. Banks grant these for an amount up to the current value of your home minus the amount you still owe on the mortgage principal - your equity, in other words. Interest rates on home equity loan rates are often lower than for conventional loans, and you can deduct interest amounts you pay on home equity loans from federal and some state income taxes (consult with your tax advisor).

However, setup fees for home equity loans can exceed their tax savings; and the major drawback, of course, is that skipping loan payments can mean losing your house.

Even if you've had credit problems, avoid shopping for a loan at a finance company until you've taken your case to all other potential lenders, including dealerships - many of which now offer "subprime" lending to consumers with blemished credit histories. Besides high rates and numerous fees, finance companies usually want you to put up your house as collateral, even on small loans.

Regardless of their source, all loans can be compared by their Annualized Percentage Rates (APR) to determine their relative cost. While lenders may compute interest charges on installment loans by various methods, the APR adjusts the actual rates to reflect the loan's true cost per year. As long as the APRs are the same, the costs of any loans you are considering also are the same.