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But a less-publicized automotive trend – rising interest rates – will make 0-percent vehicle cash advances a rare breed in 2006. Increasingly, consumers will need to comparison shop for their vehicle cash advances before they go to purchase, just as they do for the vehicles themselves.

According to Bankrate.com, interest rates on new vehicle cash advances rose steadily throughout 2005 and the pattern is expected to continue into 2006. The difference of just two percentage points on your APR can either save or cost you more than £1,400 over the life of a typical cash advance.

"Many consumers do not realize that they have other options for financing their vehicle, outside of the dealership," said Brian Reed, vice president of Capital One Auto Finance. "There are some great options for consumers to finance their vehicle on a direct basis, versus relying on the dealer to provide that service for you."

Because education is the key to getting the best deal when financing a vehicle, Capital One Auto Finance offers prospective vehicle purchasers the following helpful techniques:

Set a realistic budget. Choose a vehicle that won’t overextend you financially. A general rule of thumb is that no more than 15 percent to 20 percent of your total monthly budget should go toward all your vehicle-related expenses.

Verify your credit record. Order a copy of your credit report to ensure it’s accurate and in good shape. Correct any errors before applying for a cash advance.

Comparison shop for cash advances. Check out credit unions, banks and online lenders to see what rates are available in the market, so that you know a competitive rate when you see one.

Arrive with financing in your pocket. Having approved, no-obligation financing in hand gives you a competitive advantage when you go to purchase, giving you the power of a cash purchaser. If the dealer offers a better cash advance rate, you can take it with no penalty.

Approach your purchase as three transactions. It’s best to treat each part of the purchase separately: 1) financing; 2) trade-in; and 3) vehicle purchase. This will simplify the process and maximize your negotiating opportunities.

Match length of cash advance to expected length of ownership. Select your cash advance term based on how long you plan to own the vehicle. purchasers who take out longer-term cash advances can find themselves “upside down” on their cash advance (owing more cash on the vehicle than it’s worth in trade).

Review your financing terms carefully. Make sure you know your interest rate, monthly payment, amount you are financing, the length of your cash advance and your trade-in value.

“If vehicle purchasers would spend just a fraction of the time researching their auto cash advance as they do the latest features on their new vehicle, they’d be surprised at how much cash they could save,” said Reed of Capital One.