Buying a New Car: Tips to Help You Not Get Burned
by Fisher Swanson

Do Your Research

The first thing you will want is a clear understanding of what you are looking for in a car. It's best to narrow your search to a particular make and model that both fits your needs and has a good track record. If you go to a car lot for a particular car and find yourself being steered towards a completely different car don't buy it that day. Go back home and research it thoroughly. Edmunds.com has a great tool for comparing car features.

True Cost To Own

Edmunds.com also has a wonderful "True Cost to Own" feature. This will tell you how much a car will actually cost you including interest if you are financing.

Be sure to research gas cost. Fueleconomy.org has a nice resource which allows you to compare the gas cost of different models of cars.

http://www.fueleconomy.org>

Trade-in Research

Get the bluebook value for your trade-in at:

Timing

Shop for cars at the end of the month. Many sales people will be working to meet their quotas at that time and may be more willing to negotiate on price.

Don't Pay Retail

The retail price, often called the sticker price or Manufacturer's Suggested Retail Price, is higher than what a dealer is actually willing to take for a car.

Edmunds.com has tool for researching what particular cars are actually selling for in your area.

When you search for a car on Edmunds you will see two prices. The invoice price and the Manufacturer's Suggested Retail Price. You will want to start negotiations at the Invoice price and settle on a price as close to that amount as possible.

Say No to Add-Ons

Don't let the dealer add costly Add-Ons like rust proofing. If you have done a good job at driving down the price initially the dealer may try to stick it to you with unnecessary Add-Ons or even an undesirable financing package.

Don't Be a Sucker

If you are not good at negotiating with people, bring someone who is. Don't let yourself be a pushover. Always be willing to leave the lot if you aren't comfortable. There are other cars just like the one you are walking away from. Don't make the final decision to purchase the car with the salesperson present.

Don't Let the Salesman Flip The Script

One trick that car salesman try to pull on people is offering different financing when it comes time to sign the papers. Never drive a car off the lot until all the financing is arranged and all the papers are signed. The sale is not final until you sign the papers.

If you do drive off with your car and they call you back to deal with some details of the financing, be very careful to check that you are signing exactly the terms you agreed to. If the dealer tries to change the terms of the deal drop the keys on the desk and leave.

The Federal Trade Commission has a lot of good information about buying a car.

If you are uneasy about the decision you are about to make, don't sign the papers. Don't worry about the car salesman's feelings. Make sure that you leave with a car and are completely content with your decision or you leave with nothing at all. If you have an unsuccessful car buying experience you will be reminded of it every time to drive your car.

About the Author:
Fisher Swanson is a regular contributer to the Daily Thrifty Tips newsletter at ThriftyFun.com. ThriftyFun publishes information about thrifty living. Send an email to dailythrifty-on@thriftyfun.com to subscribe to The Daily Thrifty Tips newsletter.
http://www.thriftyfun.com

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