Buying a Car

Buying a car is an important decision because of the amount of money involved and the impact the decision can have on your everyday life.  After all, many Americans buy cars and hold onto them for 3 to 6 years - so you need to make sure that you've made the right choice and you've negotiated the best possible price on the vehicle.

The Car Buying Process

We've tried to help you to better understand the process of buying a new car by devoting an entire category to this topic.  At last count we've got nearly fifty articles dedicated to the topic of buying cars, so it's probably the right time to summarize all the information we've collected and put it together in one publication.

Arguably, there are at least four distinct steps involved with buying a car:

• Car Research
• Getting a Loan
• Negotiating the Deal
• Selling a Car

Researching the Car

You need to do as much research as possible before visiting a car dealership.  A quick visit to your local library or bookstore should yield you a wealth of information on new cars. This investigation should help you figure out exactly what is being offered in the automobile marketplace and also give you an idea of how much each car cost.

Test Driving Cars

As tempting as it is, you want to avoid starting your research by going to dealerships and test driving cars.  You might just fall in love with the wrong car.  You should first write down what you need in the car - for example, six seats instead of five - and make sure you look at cars that fit your requirements.  We realize this takes some of the fun out of new car shopping, but a car provides you with a service and you need to make sure it can deliver what you actually need.

Car Safety Features and Ratings

In today's marketplace more and more automobile manufacturers are competing not just on price but also on features.  First and foremost you should buy as much in the way of car safety features as possible.  Stability control, anti-lock braking systems, traction control, daytime running lights, air pressure sensors, and air bags are important to your personal safety and that of your passengers.

And there is also a benefit to buying such features that go beyond that of personal safety - most car insurance companies will also offer their customers a discount on their insurance premiums if safety features are present.

Fuel Efficiency Technologies

You might also want to take a look at some of the more modern fuel efficient technologies used in cars today.  With the cost of gasoline on the rise, hybrid vehicles, advanced transmissions, and fuel efficient engines will only add to the resale value of the automobile if the rise in gas prices continues.

Car Accessories

Finally, you should also think about buying some of the premium car features that make driving a car so enjoyable.  Power windows, air conditioning, automatic transmissions - are all examples of car accessories that add to the car's perceived value as well as your driving pleasure.

New Car Loans

We've covered this topic in-depth in our articles on Car Loans and Online Auto Loans.  We won't repeat here the information contained in those articles, but we want to make it clear that you have a lot of options in when it comes to financing a new car. Local banks, dealerships, and online companies are all competing for your business and a competitive car loan marketplace means lower loan costs for the consumer.

Car Loan Calculators

If you want to run through some numbers before talking to a lender, then you'll want to take a close look at our online car loan calculators. There you'll find many useful tools including monthly payment calculators and decision tools such as our buy or lease a car calculator.

Negotiating with Dealers

We've written an article on Automobile Purchase that covers a couple of the things we've already talked about here, including negotiating with dealers.  The Internet has forever changed the way many dealerships negotiate with potential customers.  The sheer volume and detailed information available to everyone with an Internet connection has rewritten the rules of negotiation.

In today's environment, there is no need to be an uninformed consumer.  Dealer invoice pricing is everywhere and many websites even tell you exactly what a new car will cost you.  Negotiate with dealers on a level playing field and do your research before discussing the price of a new car.

Insuring Your New Car

Our article on Auto Insurance will give you a high-level feel for all of the categories of insurance and the coverage they provide to you and your car.  Even if you've owned a car before, you can get some value out of this article if this is the first time you are considering financing a car.

Remember that if you have a loan on a car then you don't completely own the car.  The lending institution will want to protect their investment and that means you will probably need to carry collision and comprehensive coverage on the car.

Selling Your Old Car

You have a couple of options when it comes to getting rid of your old car.  Some are more difficult than others, but a couple of these options are pretty straightforward.  By far, the easiest way is just trade-in the car when you are buying your new car.

If you can, try to keep the negotiations with the dealer separate for your new car and your used car.  This way you completely understand how much you are getting for the trade-in and how much the new car is costing you.  Dealers will try to bundle the two deals together in an attempt to confuse you about the exact numbers. Try to avoid getting yourself in this situation.

Donating Your Car

We've also talked about Donating a Car in the past and this is something you might want to give some serious consideration.  The Salvation Army has a specific program for this type of transaction, but read through the entire article we've published.  For example, there are some requirements that the IRS has imposed that you need to be aware of if you want to take a tax deduction for a charitable contribution on your federal income taxes.

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