Research Before You Go

• The first step in buying a car happens before ever setting foot on the dealership lot. Researching models of cars and prices is critical. Know what features you want in a car, but don't limit yourself to certain models. Know how much you can afford, how much you want to pay, and how much is reasonable for the type of car you want. Edmunds and Kelly Blue Book can give you detailed information on fair market values for the models you are interested in.
  
  

Arrange Financing in Advance

• One of the most stressful parts of buying a car is the long meeting in the finance office. Dealer financial packages are complicated, and even more so when the finance officer is trying to sell you extended warranties, service packages and more. Before heading to the dealership, visit your local bank or credit union to explore your finance options. You'll get a better deal, be less likely to end up agreeing to warranties and services you don't need, and have much less stress if you walk into the dealership with your financing already arranged.
  
  

Test Drive Several Cars

• From your research, you know what features you want in a car. Be open to a variety of makes and models that have those features. Be sure to test drive them. Make sure you are test driving the actual car you would be buying, not a similar model. How a car drives can vary widely, even among the same make and model. A good test drive should be at least 20 minutes, 10 to 15 miles long, and at varying speeds. If the dealer won't let you drive that far or that long, don't buy the car. If you find a particular make and model you really like, drive 2 to 3 cars of that exact model to test for driving differences.
  
  

Negotiate Drive Out Price

• Most dealers try to get you to negotiate your monthly payment. If you state that you want to pay $300 a month, you might get shown cars with a principal payment of $320 a month--without the title, taxes and insurance figured in. Instead of negotiating monthly payments, negotiate the drive out price of the car (the total and final amount you want to pay for the price of the car, taxes, title, and other fees). This is the amount you'll be financing, so it is a better gauge of what you'll be paying monthly. Let the sales person figure out the price of the car based on your drive-out price. Don't negotiate the price of a trade-in car until you have settled on an agreed price of the car you are purchasing.
  
  

Don't Be Afraid to Walk Away

• If you aren't being offered the deal you want, don't be afraid to walk away. The sales people are not your friends. Their goal is to get you to pay the most amount of money possible for a car. If they try slick sales tactics or a lot of pressure, walk away. Never purchase a car because you are pressured into it. There are thousands of cars available, and someone will give you the deal that you want.