Have you ever dreamed of owning your own car? Imagine driving down a tree-lined street with the windows down on a sunny day, a warm rush of air streaming through your hair...
OK, snap out of your reverie.
Before you start mapping out the route to the nearest beach, you just might want to learn some valuable car-buying tips.

Buying a car, whether it's a first-time purchase or not, can seem like a daunting task. You've probably seen your share of car commercials on TV and recall hearing phrases like "down payment" and "APR." Although some of the terminology may seem confusing, once you break it down, buying a car is pretty straightforward.
There is certainly a lot of information you need to understand before you run off to your local dealership.
But once you know what the acronyms mean and how financing works, you'll be ready to get the best possible price on the car you've chosen.

In this article, we will discuss used and new-car purchasing, what you need to know before you decide to buy, how to avoid common pitfalls, getting the best price and what to do if you have a problem with your purchase.

 

The first thing you must decide before you begin your automobile research is whether you want a new car or a used car. Of course, there are benefits and drawbacks on both sides. If you decide to buy a used car, there are several things you need to keep in mind.

First of all, there are more than 2 million car accidents annually and chances are if you are in the market for a used car, you will come in contact with at least one automobile that was in an accident. The most important thing about buying a used car is that you know everything about the history of the car, including:

 

* the number of previous owners
* if the car was ever involved in an accident
* any previous mechanical problems
* the maintenance history of the car

 

One of the largest benefits of buying a used car is that you can often get a great deal and in many cases, the car you buy may even be relatively new. Successful used car buyers often are just as happy with their used car as new car buyers are with a new vehicle. But remember, the most common car-buying horror stories do involve the purchase of used cars. When you have a good idea of what kind of car best fits your needs and budget, you can begin your research on used cars.

 

Whether you're buying new or used, there's no doubt that the Internet is a great tool for your car quest. If you are buying a new car, you can research the kind of car you want, the options you need, the price of the car and the price of the additional options. If you've done your homework, you'll be able to walk into a dealership armed with loads of valuable information.

 

When you're just starting out, a good first step is to go to the manufacturers' Web sites to check out the cars and the available options. You can usually find local dealers and request quotes or see the Manufacturer Suggested Retail Price (MSRP). Once you've narrowed your choices, you can check out an array of other Web sites for more pricing information:

 

Make sure you go to more than one pricing site to get the best idea of the average price.
In addition to using the Internet to research the car you want to buy, you can also use it to figure out your finance options and select a warranty for your car. Sites like E-Loan and Lending Tree offer online auto loans.
A warranty is a contract that guarantees maintenance if your car has any mechanical or other problems.
Remember that warranties are another way for dealers to get more money out of your bank account, so know what kind of warranty you want and how much you are willing to pay for it.

 

Let your fingers do the walking so your feet don't have to!
Use the Internet to help put you behind the wheel of your very own vehicle.

 

Now that you know where to start looking for information, let's take a closer look at what you should know before you go shopping.
Before you start thinking about fun things like whether you want a convertible or a sports car, you need to do some self-examination. First and foremost, you need to examine your budget. You should set a reasonable price range for the car and begin to eliminate cars that are out of that price range. As a potential car buyer, you need to be realistic, don't fantasize about a $45,000 car when your budget will just barely support a $22,000 price-tag. Also, remember that trying to figure out a way to buy a car that is outside your price range is really not a good idea.
After all, it's not much fun to have a car if you can't afford to go places in it.

 

You also need to know about your own credit history. If there's something that you think the dealer will ask, that's certainly something you should be prepared to answer. Many of the promotions that you see on television are reserved just for people with excellent credit. So having a copy of your own credit report is important. There are a variety of places to obtain a copy of your credit report.

Finally, you need to know what your automobile needs are:

 

* Do you need to haul heavy equipment? You may want to think about a pick-up truck.
* Do you have a sizeable family or head up a carpool? You may want to think about a minivan, wagon or large sport utility vehicle (SUV).
* Do you live in an area where you need four-wheel drive? You may want to think about an SUV with all-wheel or four-wheel drive.
* Do you travel far or use the car rarely? If you log a lot of miles, you may want to research cars that get good gas mileage, like a hybrid car.
* Do you have a towing requirement -- perhaps you need to tow a horse trailer or a boat? You may want to consider a heavy-duty pick-up truck or an SUV with a towing package.

 

There's a vast amount of choices for today's car buyer. Knowing what your automobile needs are is the easiest way to begin eliminating some of those options. Eventually, with some additional research, you should be able to narrow the field down considerably.

About the Car

When you figure out what car you want (or what cars you want to check out up-close-and-personal -- think "test-drive"), there are some things you want to learn about the car(s) so that you can get the best deal possible when you're ready to buy.

You will need to know the average price of the car, so you won't overpay. You can get a good idea of the base price (the price of the car without any special options) by visiting different dealerships and comparing prices and by using the Internet to get price quotes. You should also get an idea of how much the dealer will add on for various options like air conditioning, a cd player or anti-lock brakes. If you can, try to find out what the dealer price is and negotiate up from that figure. According to ConsumerReports, it's actually a lot better to do it that way as opposed to working from the sticker-price down.