Buying a car is expensive and one of the biggest purchases in your lifetime. The key to a successful purchase is due 
diligence and research. Here are some tips to help.
• Decide On Target Price - Before you ever go to inspect a used car, or visit a dealer, make sure you have calculated how much you can afford to spend. The standard rule is the total cost of owning and operating all motor vehicles you own should not be more than 1/5 of your monthly take home pay. Only allow 5% of your take home pay for vehicle operation in your calculations. All details on car finance are important to have in hand when you visit dealers. They may offer financing too and you need to be prepared. Use online auto pricing websites to know the invoice price of the model car you are considering. That number is your negotiating start point. Have this info before visiting any dealer.
• Used Or New - Do not rule out either used or new vehicles. Because of a weak economy the value of, and demand for, used vehicles is higher than ever. Dealers often are moving great new cars for under $14,000 so keep an open mind. Another factor is the interest rate on loans for used cars is higher than on new cars. This brings the effective comparison price of used and new cars closer together for cost of ownership.
• Research Is The Key - You may feel in a rush to find and purchase a car but take your time and research everything well. Use auto company websites and consumer information sites to check on history of used cars and pricing guides for both new and used vehicles. If you have friends that own the model you are looking for, get their input and experiences in buying, owning and maintaining that particular type of vehicle.
• Total Cost - Make sure you have figured out the total cost of owning a car before you even go to inspect used or to dealers about new cars. Talk to lenders about car loans before you let a dealer offer you credit. If you have excellent credit, you may get a 0% car loan. Check on auto insurance as well and be sure how much that will be costing you before negotiating on any vehicle. Make sure you check all automaker cash back rebate programs in progress at the time you make your decision. Many manufacturers and dealers also have discounts for students and other groups of buyers. Do not leave any possible discounts on the negotiating table.
• In addition to the cash back and discounts available for new cars from previous model year there are often cash incentives to help clear cars of their inventory. Dealers have interest payments on vehicles that have not moved so they have reasons to help you get these purchase incentives. These can be worth up to $1000 and make a big difference in costs of owning a car.
• Make sure you to run the vehicle identification number online where from the VIN you can find out all about past problems for that car, such as accidents, constant service problems, involved in a flood or suspicions of tampering with odometer readings. You can also find out how many owners there have been, if it was used as a rental car or part of a large company’s fleet of cars. The VIN will also reveal how many accidents, how many times the airbags have been used, give information on frame damage and all service record reports.
If you follow the suggestions in the tips listed above you will have a great chance to find the car that is best for you and that you can afford to own and operate. It is important to take your time and complete the process mentioned in each tip as thoroughly as possible.
