Buying a car can be frustrating for some people. Dealing with salesmen and car dealerships can get a little tricky. When you are in the market for a new car there are some steps you can take ahead of time to prepare yourself for the shopping and buying process. Making a car purchase doesn’t have to be difficult, if you prepare and educate yourself before you make your purchase then you can eliminate some of the common problems that tend to arise.

Here are some steps you can take to make the process easier.

Know Your Options

Prepare yourself by researching car brands, models, prices and ratings. By doing the research ahead of time it will help to ensure that you are knowledgeable and prepared to discuss the car you want. Before you go to a dealership decide what kind of car you are looking for (make, model etc.) and how much you can spend. It is a good idea to decide on a price range and the type of car you are willing to drive, this way you can guide the dealer in the right direction instead of giving him control. Educating yourself about interest rates, car prices and consumer ratings will give you the upper hand when trying to negotiate a price.

Shop Around

Never make impulse purchases. Most car salesmen are experienced and know how to make a sale. Don’t let a “smooth talking” salesperson persuade you to buy something before you are ready. You should always visit more than one dealership and look at several vehicles before you decide on the “perfect car.” A rule of thumb is to get three quotes for your item, especially with large purchases. One place may have better prices, rebates or finance options. It is also a good idea to check with your bank or credit union to see what financing they have available. A lot of times if you finance through your bank you can get a lower interest rate.

Maintain Control

Don’t let the salesman “bully” you. Arm yourself with information. Do research on the Internet or use other resources to educate yourself about the type of car you want and know facts and pricing ahead of time. Tell the salesman in detail what you want including new or used, amount of miles, price range and payment. Don’t let them talk you into a higher price or payment range and don’t waist your time going back and forth from the salesman to the sales manager. Make them give your real numbers and prices instead of trying to negotiate for hours. If they can’t do what you want then move on to someone who can.

Visit Reputable Dealerships

Make sure you a buying a car from reputable dealership. There are many businesses that tend to be dishonest. If you are in the market for a used car you should be careful and know the reputation of the showroom you are purchasing the car from. Get recommendations from family, friends and colleagues and check with the Better Business Bureau or Consumer Protection Agencies to see if there have been any problems or complaints about the company. Another alternative is to have your personal mechanic look at the car before you purchase it and determine whether or not it has any mechanical problems. Dealing with an honest company is an important factor when buying a car.

Know Your Limitations

Check your credit status and determine a budget before you attempt to purchase your new vehicle. If you don’t know your credit situation good or bad and you have no clue how much car you can afford then it can be a difficult and lengthy process to get the financing you need. Be aware of your credit circumstances and be realistic when it comes to your personal finances. It is a waste of time to look at vehicles that are out of your price range because when it comes getting a loan, your debt to income ratio will be too high to qualify for the financing. Having your credit run too many times can affect your FICO score and damage your chances for qualifying for a lower rate. Don’t let the dealership look at your credit until you have made a decision on the car you are going to buy. If you know your credit situation then there will be no questions about whether you can qualify for car financing. Individuals with bad credit will have to look into alternative financing and probably have to pay a higher interest rate. It is a good idea to know your options before your buy so you can make sure you get the best deal possible.

Other Financing Options

Whether you are buying new or used there are several options available. Consumers should be aware of the different kinds of car loans. You can finance a car with a 36, 48, 60 or 72-month loan. The longer the time period the lower your payment, but most banks offer a better interest rate on short term loans. For example is you finance a 36 or 48-month loan you probably will be able to get at least a .5 % lower rate than the 60 to 72 month loans. Another alternative is to lease a new car. Leasing is a good choice for people who don’t like to keep cars for long periods of time. If you like to drive a new car every couple of years and you don’t put a lot of miles on your cars then leasing is a wonderful choice. There are several kinds of leases but the most popular is the “smart lease.” This lease is a 24 month lease and it usually allows you to drive 12,000 to 15, 000 miles annually. After your lease period is up you have an option to trade-in your vehicle for a new one or you can opt to buy the car at a reduced price. There are many different policies and stipulations to leases so you need to make sure you understand the contract before you agree to it. Leasing has become a popular choice for some consumers.

Buying a car new or used can be a simple and enjoyable experience if you know how to do it. Following a few basic steps and strategies when purchasing a car, will assist you in making sure it is a smooth transaction. The number one problem for consumers is ignorance. If you don’t know the proper information and don’t do your research ahead of time you usually don’t have the knowledge you need in the negotiation process. Educating yourself can be a powerful tool when it comes to purchase price and financing for your car. The salesperson is in it for the commission, so you have to be prepared to bargain a fair and honest deal.