Winners when it comes to car deals are those who, in the face of sales pressure, succeed at paying market value or less for a specific vehicle. Even if you’re sitting at a one-price dealership and they refuse to budge, you, the potential purchaser, have all the cards in your hand…you will win eventually if you have patience and stamina.

Some Car-Wise Buying Tips

There are just a few rules to observe if you want to land that perfect deal:

• Firstly, line up a few establishments to visit, including, preferably, some that have been recommended by acquaintances or by popular social review sites like Yelp.com or DealerRater.com
• Once there, remember that while the salesperson is stuck all day working at the same dealership, youhave the freedom to walk away. Use this to your advantage.
• Set a time limit for yourself and adhere to it strictly. Put the salesman under pressure by stating at the outset your intention to spend a specified maximum time (say, 60 minutes) on their premises.
• Take things up a gear by pointing out what tempting offers Y and Z dealerships are currently running, showing that you are on the horns of a dilemma. With that possibly greatest of all negotiating tools under your belt, the onus shifts to the salesperson to present you with an unbeatably attractive deal.
• If you’re a cash buyer, ask about paying with your rewards program credit card. You can always pay off the statement at the end of the month, and the points you earn could buy you a plane ticket.

Be A Buyer Who Has Done Their Homework

The best ammunition the purchaser can be armed with is the fruits of research. Know all you can about the model of car you are pursuing, about list prices for the various years. If you are buying brand new, make sure you know the invoice price. [NOTE: Edmunds.com has some price info called True Market Value that can be particularly useful when negotiating the price of a new car – Editor.)

Be prepared to be bold and to commence negotiating by offering under the invoice price. Don’t be tempted to take pity on the salesperson who spins the story that there is little profit for the company in the sale of a new car. While this is often true (since dealerships really make their money from used car sales, parts, and service), it doesn’t matter to you and your transaction. All that matters is the final cost.

Use The Information Revolution

If a used car is what you have in mind, vehicle background checks from Carfax and AutoCheck are well worth taking advantage of…especially because most dealers will provide one or both of these reports to you for free. A vehicle history report enables you to gain details of the history of their prospective wheels, including true mileage, accidents, salvage damage, lemon law claims, as weel as the estimated number of owners. Remember however that Carfax and AutoCheck are only as good as the data they receive;  they’re not a substitute for a physical inspection from your local mechanic.

The final point to keep at the forefront of one’s mind is: be observant. Nothing replaces a thorough personal examination. If you are going to ride around in it, get acquainted with it!

Annie is the frugal blogger for Credit Card Finder, the free Australian credit card comparison tool.

However, due to their inexperience and quintessential naivety, a great many teenagers don’t know what is involved in the purchasing process (frankly, a lot of adults don’t either, but we’re getting off topic). To help you and your teen with the used car buying process, here are eight tips for buying a used car for a teenager:

1. Make a plan. Figure out what kind of car you will be buying and how you will pay for it. Remember that just because you are purchasing a vehicle, this does not mean that you need to buy an expensive, luxurious car.

2. Buy an efficient vehicle. Purchase a car that is efficient to use, good on gasoline and easy to drive. Most teenagers will want something that is affordable and easy to maintain.

3. Consider buying an older vehicle. Thinking about putting your teen in a brand new car? Consider this: Will your son or daughter appreciate being able to drive a new car, or will they take it for granted? Every teen is different, but the fact is there are millions of Americans who can’t afford to buy a new car. Looking at an older vehicle might help your teen appreciate the finer things in life more when they’re older.

4. Figure out the payments. If you are a parent who is buying a car for your teenager, or if you are a teenager who is looking at purchasing your very first car, you will need to sit down and figure out your expenses. Develop a plan to figure out how you will pay for the vehicle (i.e. either by loan, monthly payment, or cash).  You will also need to consider whether or not you will be able to handle the payment. Depending on your budget, purchasing a used car may make more sense than buying a vehicle that is brand new.

5. Know where you will be buying your new car. Choose a dealership that offers good vehicle services, easy financing, and cars that are in good condition. Check out review websites like Yelp.com, Kudzu.com, and DealerRater.com to see what other people say.

6. Get a second opinion. When you buy a car, ask someone to come along with you for a second set of eyes. You can also bring the car you like to a local mechanic to check it out before you buy.

7. Consider buying out of state and online. There are plenty of car-buying options out there where you can get a great deal online while still buying a car from a known auto dealer. By looking across state lines to buy a used car, you might be able to save some money. If driving cross country to pick up a vehicle for your child doesn’t sound like fun, have it shipped to you through a car shipping company. Just make sure that auto transport company you hire also provides affordable car shipping rates.

8. Check out car sharing. If your teen is headed off to college, you definitely want to investigate car sharing services like ZipCar, OccasionalCar, eGo, etc. Many of these services have offices on college campuses, and considering just how often college students drive (some of them don’t drive for days at a time), car sharing might be one way to go.

Whatever you do, the best tip is to exercise patience. Making sure that your teen takes time to find a car sets a great example – this is the kind of big decision that shouldn’t be done haphazardly.

1. First of all, Subaru falls under the Japanese transportation conglomerate Fuji Heavy Industries (FHI) as its automobile manufacturing division. Toyota Motor Corporation owns 16.5% of FHI and is currently in works with them to produce a 2-door coupe known as the FT-86. According to Japan’s Best Car magazine, the production version of the Toyota FT-86 will arrive by the end of the year, at the 2011 Tokyo Motor Show in December. Look for it at your dealer, Chicago Subaru, or other Subaru dealership near you sometime after that.

2. Subaru has been selling cars in America since the 1970s when it first introduced the all wheel drive drivetrain layout, which has since become standard equipment for mid-size and smaller cars in most international markets.

3. The Subaru Legacy, first introduced in 1989, was the first vehicle that became a sales success for the company and established a new direction for them. Another hit followed in 1995 when Subaru campaigned heavily and successfully sold many Outbacks. About this time Subaru products began to attract a following among the young and educated, who saw the car as a practical alternative to the SUV craze.

4. Between 1992-1997 Subaru sold a truly one-of-a-kind sports car. The SVX, rarely seen on the road today (they sold 14,000 in the United States) could easily be known as the car with the most unique design.The most striking feature of the car is the windows. The window design of the SVX was created with the goal of good aerodynamics, unobstructed visibility, and a distinctive appearanc

5. Their persistent ability to reach a niche in the market has continued today due to their creative knack to produce something different yet still appealing. Currently they are campaigning for the new 2011 Subaru Legacy which claims to fight mediocrity. As they claim, it’s a far cry from the boring, mid-size sedan and the new Legacy should be a thrilling experience.

With all things considered, Subaru continues to be a competitor among the best sold cars in America. Their reputation will only gain momentum as they take on new and innovative approaches to delivering the details that people are looking for in a car.

Hyrbids are great, but do they make financial sense?

The Pros:

• There are less frequent stops for filling the gas tank.
• Less fuel is burned, thus less damage is done to the environment.
• Tax credits are given to fuel efficient car owners.
• A high MPG car owner can sleep better at night knowing that he or she is lessening their environmental footprint.

The Cons:

Contrary to popular belief, there are a few cons to owning high MPG cars. First, high MPG cars are not exactly considered stylish and could rarely blend in with a crowd. In fact, usually they scream ‘fuel efficient’ as they often reflect their efficiency in their typically compact design. Another issue is their lack of power. These issues can be overlooked as they are not usually deal breakers to most environmentally conscious buyers. The last issue, though, is one that few have considered…

That issue is an eyebrow-raising question concerning whether or not they really save their owners more money in the long run after all? That question seems odd until the figures are outlined. When you look at the MSRP of a standard version and a Hybrid version of the exact same car while keeping the average MPG in mind, it’s important to consider both the upfront cost as well as the continual gas costs throughout the years. In many cases, the upfront cost is so much more expensive that it can take the full estimated life of the vehicle before the savings on gas begins to make up for the initial inflated price tag.

Indeed, there are definite pros and cons to owning high MPG vehicles. Depending upon individual preferences and the varying factors for each type of fuel efficient vehicle, the investment could end up being either incredibly savvy or incredibly foolish. That is why every environmentally conscious car buyer should really look at the pros and cons before making such a purchase.

Secondly, auctions require you to buy a car pretty quickly. Even as a used car manager tasked with buying dozens of vehicles a week, it was a hectic process. If you’re not very careful and attentive, you can make a mistake. I’ve failed to notice damage and bid too much, and I’ve even had auctioneers “run me up” with phantom bids, etc. Auctioneers are clever and they’re paid based on how many cars they auction off. They WILL try to trick you.

Finally, “public” auctions are usually filled with cars that licensed dealers had no interest in. Dealers like to buy cars they think they can sell for a profit – everything else they ignore. Cars that are ignored by dealers are usually taken to a “public auto auction” where they’re sold to less knowledgeable consumers. (This is only true of most public auto auctions, but true government auto auctions are made up of government fleet vehicles that can be bid on by anyone). If you decide to buy a car at auction, here are some tips:

1) Decide what kind of car you want before you go. Before you start buying cars at auction, you should know what you’re at the auction to buy. A lot of big mistakes are made when you buy a car you know nothing about, so choose a specific make and model (i.e. a 2002-2006 Silverado 4×4), and then only buy that model. Make sure you know what to look for, what to check for, etc. Also make sure you know what to pay. Check edmunds.com, kbb.com, and nadaguides.com for price info. Don’t bid on a car unless you know everything about it – that’s how you make a mistake.

2) Don’t feel like you need to buy when you go to the auction. One of the biggest mistakes first time auction attendees make is feeling pressure to buy. My advice is to go to a few auctions and just watch – don’t bring any money with you. Just watch and learn. You’ll be amazed at how much you can learn watching a few auctions.

3) Leave your ego at home. If you find a car you like and you start bidding, you might have a little competition. Nice cars always have a few bidders, and someone might decide they want the car more than you. If a bidding war erupts, don’t let your ego get the best of you. Don’t spend more than you should just to beat another bidder. Besides, that ‘other bidder’ might be a shill – someone who works for the auction whose job it is to artificially raise prices. It’s illegal, but it happens all the time.

4) Look in your local new car dealer’s “back lot.” Buying at an auction is hit or miss – you need to be very careful and a little lucky to find a good car. But buying an inexpensive car out of your local dealer’s back lot is easier and safer. Most new car dealers will sell you a car out of their back lot so long as you agree to buy “as-is” – they’ll even let you take it to a mechanic before you buy.

I’m not a big fan of buying at an auction – you can almost always find a better deal on a dealer’s lot.

Q. I’m trying to decide if I should buy a sports car or if I should get two vehicles – a motorcycle (for fun) and a cheap car for the winter? Any advice?

Thanks – Chris.

I like the way you’re thinking – it’s a very rational idea.

I don’t think there’s anything wrong with your plan, but I do think you should consider the following:

1) You’re going to need to insure both vehicles. Two insurance premiums are often more expensive than one. I’d check with the insurance company about what the cost would be first.

2) The “cheap car” idea is a good one, provided you can actually find a car that’s both inexpensive and reliable. After all, the whole point of having a car is to stay out of the weather. But if the used car you buy isn’t reliable doesn’t start on cold days…well, that kind of defeats the purpose. If you buy a cheap car and it craps out, you’ll need to buy another. That probably won’t save you money.

3) I hate to sound like an old man, but “motorcycles are dangerous”. It’s true. Your chances of being injured in a modern sports car are MUCH less than your chances of being injured on any motorcycle. Give this some serious thought – I’ve met a lot of people that were crippled on motorcycles. Seriously, this is a big deal.

My advice, if I’m qualified to give it (I’ve never owned a motorcycle), would be to buy the motorcycle only if you already have a reliable back-up vehicle (and if you’re responsible enough not to take chances on a high performance bike). That way you don’t have to worry about buying someone else’s problem. Nice motorcycles are less expensive than nice sports cars, and they usually perform much better.

When the novelty of riding a motorcycle wears off (or when you need to buy something else), you sell it and get a car then. A couple of good friends of mine have done this and both been very happy. The bikes were cool, but after a couple of years they decided to get something different.

The other piece of advice – whatever you decide to buy, buy it used. Now is a good time of year to find a decent performance bike and/or sports car, and you can often get them for a solid discount thru the end of April. I was amazed to see used low miles Hiyabusa’s (spelling?) for less than $5k. Those things are as fast as any car on the road, but you can pay one off in 12 months. A great deal.

1) Be Suspicious: We’ve heard unbelievable stories about people getting taken advantage of by private sellers. People will lie about how they got the car, who owned the car, why they’re selling, etc. Don’t always believe what the seller tells you: take everything with a grain of salt.

2) Take your time: If the person trying to sell you a car is a con artist, they’ll want to consummate the sale as quickly as possible. If they’re trying to “pull a fast one”, they’ll offer you anything to get you to buy immediately.

3) Ask a lot of questions: If a person is trying to sell a car that doesn’t belong to them, they’re going to have a hard time answering questions like “when did you buy your car,” or “has it ever been in an accident,” etc. It’s also smart to ask lots of questions because you’ll be surprised what the seller will volunteer. Just make sure that you listen to the answers carefully.

4) Get the car inspected before you buy: There’s absolutely no reason why a legitimate private seller wouldn’t let you take their car to a mechanic to have it looked at. If the seller is trying to hide something from you (like a bad transmission, flood damage, etc.) they won’t let you get the car inspected. If you can’t get the car inspected, don’t buy it.

5) Compare the seller’s ID to the title and registration: Before you buy from a private party, it’s important to compare their ID to the car’s title and registration. Everything should match, but if it doesn’t, you should tell the seller you need to meet the actual owner (the person on the title and registration). If you can’t meet the actual owner, you might consider walking away. If you buy a car from a person whose name isn’t on the title, you could be buying a stolen vehicle.

6) Ask for emissions test records, inspection records, etc.: You will need these records to register the car after you’ve bought it.

7) Complete a Bill of Sale: A Bill Of Sale is a good idea – it will help protect you from any future problems (in case the sale was illegitimate), it’s a good record to have, and it may be necessary for insurance, registration, etc.

As always, take your time when buying a used car. Do your used car research, get multiple used car financing quotes, and feel free to contact us with your questions.

Generally speaking, there are FOUR reasons to buy a new instead of used:

1) You plan on keeping whatever you buy for more than five years. If you keep a new car for five or more years the long-term costs work out to be less than buying an average used car and doing the same. Even better, for every year you keep a new car past five, the ownership costs get lower and lower. Keep a new car for 10 years, drive it until the wheels fall off, and you’ll save a fortune.

2) You require a special feature. If you have a special purpose or need (like towing a big RV or trailer, hybrid engine, etc.) a new vehicle is often times the best or only way to go.

3) You’re “picky.” You want a specific color or feature; you don’t want anything with scratches, dents, or a funny smell; you need the sunroof AND the manual transmission, etc. Since you’re paying good money for a car, you should try and get what you want…but if you’re really particular about features, condition, etc., don’t bother looking at used. You’re probably not going to be happy with anything that you find and you might waste a lot of time.

4) There’s a tax benefit for buying new. A lot of people who are self-employed will actually save money buying a new car because it’s a tax write-off. We can’t speak for what is or isn’t a tax write-off for your specific situation so the best thing to do is call your accountant and find out. However, new cars tend to make more sense for people that have their own business.

In summary, there’s also a lot to be said about buying a used car, but new cars have their benefits too. If you’re leaning towards buying a used car, here are some questions you should ask yourself before buying a used car. But if you find yourself identifying with one of the four reasons we’ve given then you should feel good about buying a new car.

As always, take your time when buying a new car. Do your new car research, get multiple new car financing quotes, and feel free to contact us with your questions.

There’s another good reason not to get emotionally involved with a car — when it comes to buying a vehicle, salespeople can tell if you’re emotionally involved. Like sharks can smell a drop of blood from miles away, salespeople can smell emotional involvement. They’ll use it against you; they’ll tell you that somebody else is going to come and buy the car you want if you don’t buy it today, right now. They’ll tell you that this is the best price you’ll find on that car …it’s a really nice car and people love it: anything to reinforce the image you have in your head that the car you want is the best in the world.

It’s also important to know that when people get emotionally involved, they often make bad financial decisions. These emotions can get so strong that a person might decide that even though they’ve set a budget of $350 a month, they really really want to buy a particular car. They’ll “cut back” here and there in order to be able to afford a higher monthly payment, just so they can get the color they wanted, or a special feature or two. I’ve found that people make these decisions because they think it will make them happy (because they’re emotionally involved) but they end up putting themselves in a difficult situation financially.

Emotions don’t just apply to the car you’re buying either — they often can apply to the car your trading in. While it’s normal to have a special place in your heart for your trade-in, don’t let that keep you from getting a good deal. If you take a step back and look at your trade-in objectively, you’ll usually have a better idea of what it’s worth.

Steer clear of emotions when buying your next car. Figure out your budget, figure out what you need out of your next car, do your research, and you’re guaranteed to get a good deal.

One of my best car buying tips is that you should always be willing and able to walk away from an offer. This can be your best negotiation strategy. By walking away, you make sure that you’re getting the seller’s best offer. Here’s why:

• Most sellers (private or dealership) realize that if you leave, you’re probably not going to come back. They have one shot to sell you a car.

• Sellers know that they need to make you their best offer before you go – they feel that if they tell you their best price and you still leave, then it just wasn’t meant to be.

• Here’s the best part of the “walk away” strategy: if you tell a salesperson or a private seller, “Thanks, but this just isn’t the deal that I’m looking for,” and you leave, they might call you in two hours to say they’ve got a better price.

• If you don’t hear from the seller, and you really want the car, you can always call them back and tell them you’ve changed your mind, that you realized it’s a nice car and a pretty good deal, that you’re willing to take it now, etc.. You can do this and know that you’ve negotiated for the best price while also saving face.

As always, take your time when buying a new or used car. Do your car research, get multiple used car financing quotes, and feel free to contact us with your questions.