Shopping

Unless you are paying cash for your car, the first thing you will want to shop for is a low interest rate. I will cover financing in detail later but I need to mention this here. Before you visit a car dealer, shop a bit for interest rates. The cost of borrowing money is enormous and you will save hundreds or perhaps thousands of dollars by getting a better rate.

Check with a few banks, credit unions or online services regarding rates, terms and down payments needed. Some banks offer great rates but only for shorter terms and require large down payments. Credit Unions may also have some restrictions. Short terms will save you a lot of money but may put payments out of reach. Find the best deal available that suits you. Check out the calculator in the Before You Shop section.

Next you need to shop for a car. (I'm assuming here that you haven't already chosen one.) A great way to do this with no pressure is to visit dealerships lots after they are closed. Most don't mind this, after all they want you to buy one! Eventually you will want to visit a dealership and drive some cars. This means that you will need to speak with a salesperson. (Yuk!) Your goal here is to narrow your choices down to one or two cars that you like and that fit your budget.

Please don't buy anything on this visit unless you already know the cost. Ask for a copy of the invoice while you are there. The salesperson will try desperately to qualify you by asking how much you want to spend, what you want monthly payments to be, down payments etc. The salesperson will also try to get you into a 'close' by asking to appraise your trade-in or giving prices. I would recommend against getting involved with any of this at this point. Remember, you have prequalified yourself and don't need to discuss any of these details now. Stick to your plan: Pick a car or two, get an invoice if you can, and now let's find out the real cost.

Table of Contents
First Things First
Before You Buy
Your Trade In
Buy or Lease
Shopping
Dealers' Cost
Negotiating the Deal
After You Buy
Warranties
Appendix