When buying a car, thinking about buying one, or just shopping around, show the salesman that you are ready to buy a car this second. By giving him or her the impression that you're ready you are showing him/her that you are a serious buyer and you did not come to waste the sales person's time. In most cases, they will take you seriously and you should get the best deal.

It's always good to find out some information about the car. Spend a few minutes and check out the articles on this site.

Get a copy of everything you sign, at the time you sign it, and do not sign anything that has not been filled out (sales contract, warranty or service agreement, credit life/accident insurance, odometer statement, title, repair receipts, etc.). These forms could come in handy later on.

You have to be willing to walk away, especially if the dealer tells you to take it or leave it or signals another hard ball tactic, you can always come back another time. They may act like it's OK for you to leave, car salesman and their managers throw tantrums upon seeing you walk out the door.

When buying a new car, NEVER start at sticker price and work your way down, always start $1000 below New Car Invoices and work your way up from there in $50 increments. Why? Even if a dealer sells you a new car at "cost" they are still making 3-5 % in what they call "hold back" money from the factory, they will of course deny this fact, but it is a fact.

It is better if the dealer has a large inventory of cars on hand so you can see first hand the actual car you will be purchasing. This helps you look for any minor dents or scratches. It also is good to crouch down and look at the side of the vehicle at an angle to notice any dings or scratches. Also you should inspect for interior or exterior defects or unlikeable attributes. Ask anyone affiliated with the dealership if the vehicle has ever been in an accident.

The best way to find out if the mileage is real on a used car is to look at the steering wheel and see how much the leather or vinyl is worn out from holding it all the time. Look at the top, that is the most popular place to hold on to it. Check out CarFax Vehicle History Report.

If you are planning to buy a used car and you are not planning to finance it, don't go to the dealer, look through classified in local newspapers. There are alos classifieds on this site and many others that feature used automobiles.

Test drive the vehicle and ask the owner if you can have the vehicle thoroughly checked out by a mechanic before you buy it; especially if you are buying it "AS-IS" without a warranty. Look over the vehicle to be sure everything works. Ask specific questions. Has the car ever been in an accident? see checklist

Inspect the seller's title; is the seller the actual owner? If the seller is a dealer, is the mileage information filled out? In addition, many dealers do not keep their tiltles on the dealership property. Does the title have a Salvage, Scrap, Rebuilt or other information printed on it? When was title issued? If it is a recent title, someone else recently sold the vehicle to the person trying to sell it you.

Most dealerships used to only have "closed end leases", but not anymore. Now they offer "open end lease", which means that you can get out of it before the end of the contract without hurting your credit, however, the fees for breaking even an open ended lease can be substantial. If you know that the car is not going to get too much abuse and high mileage, then it's ok to lease it, you WILL save money. Because of the way lease works, the lease terms are mostly all up to the residual, they can vary depending on the model and make you get.

If you are leasing a vehicle, find out the "selling price" that the lease payment is figured from. This price should include a credit for any down payment and/or trade-in vehicle involved. Ask the dealer to show you how the price was figured and how the monthly payments were arrived at.

If you choose to lease your new car and you know that you are not planning to buy it at then end of the term, then be prepared to TRADE IT IN EARLY (at least 6 months). The residual value of the car will be more than its actual resale value at the end of the term. The dealership will not be willing to take the car on trade and will instead turn it in to the Leasor. This means you will pay for the extra mileage and wear-and-tear. However, if you trade in early, your car will be, in many cases, worth more than the residual and the dealer will take the car as trade in.

You can buy a car with cash if you have that kind of money and you want to save yourself a headache and get a much better deal. And you WILL get a headache when you are buying a car, there is no way to get out of this one.

Get everything in writing: purchase agreement, price, options, trade-in value, finance terms and warranty terms.

A new car can depreciate 30% - 40% the moment you drive it off the lot. Do not finance for so long that you pay more than the car will be worth when you are done paying it off.

When you go to the dealer try not to let them run your credit more then once, better yet, get your free credit report right here. and if you go to a a different dealer do not let them run it again. It might damage your credit history. Remember that they are not allowed to run your credit report without your permission, and if they do, you can always do something about it.

Before Signing the Contract

Beware of hidden charges. Make sure the price you were quoted includes the desired options, tax and any fees.

Do pay destination fee, tax, and license & registration fees.

Don't pay documentation, administrative, advertising or delivery & handling fees; these are all the cost of doing business and come out of the dealer's profit.

Take a last test drive to make sure that this is the car for you and everything runs well. You might have your mechanic look it over for any potential problems (mainly done on used cars).

Deduct any rebate from the price you pay to avoid paying sales tax and/or to the amount you have to finance in order to avoid additional interest.

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