How to Deal

Nine easy steps to buying your next used or new car

No matter what you've heard from your friends, family, and co-workers, there are certain steps that you should take to get the best deal on a car that's right for you.

Step 1

Know how much car or truck you really need, then find a model that fits that bill.

Step 2

Go for a test drive and start the evaluation as soon as you walk up to the car. How easy is it to get in? How comfy are the seats? What's your visibility like? Do you feel like a sardine? Go for a test drive. And be sure to take it out on a highway, so you can feel how it accelerates and handles at high speeds.

Step 3

Talk to your insurance company about the cost of premiums for the car you've chosen.

Step 4

Call several lending institutions to see who's got the best financing package and compare it to the dealer's offer. Step 5

Kelley Blue Book

If the car you're considering is new, add the cost of the options you'll want.
If you're ordering a new car, determine the value of the holdback and subtract this amount.
Add the True Market Value price to the list of discounted options.
Add the destination charge, which is non-negotiable.
Some dealers will try to slip in a delivery and handling fee, but it's not yours to pay.(who pays it)
Add any applicable sales tax and deduct any incentives or rebates.

Step 6

Get the lowest possible price from dealers. Tell them that a competitor will give it to you for a lower amount - if that's actually true. If they claim they will beat that price, get it in writing.

Step 7

If you're offering a trade-in, be sure it's at market value and don't accept anything less. You're likely to get more for your car if you sell it on your own. When trading in what you've been driving, deduct the trade value from the cost of the new or used car you're buying.

Step 8

Add all license, title and documentation fees to the charges - these can really add up.

Step 9

It's happened to the best of us, but don't let the dealer's finance manager talk you into buying extras for the car as you close the deal. There are all kinds of coatings they'll try to sell you, from rustproofing to undercoating, as well as protection packages, dealer-added options, and an extended warranty or service contract. This is just stuff they're trying to slip under the radar and if you agree to buy, you're only helping the dealership raise its profit.