How to buy a car
Julie E. Houston • Bankrate.com

Don't head to the car dealership empty handed. If you want to make the dreaded process of buying a car a little easier, make sure you have your papers in order.

An unsuspecting victim is in the market for a new car complete with sweaty palms and racing pulse. He has no plan of attack, and the car dealer's approach is as calculated as a lion stalking its prey. He sizes up the shopper and finds the jugular. Then ... he pounces. Finance rates go flying, down payments make the victim's head spin, he barely remains conscious as the salesman rips into his prey with option packages. Buy now, pay later, cash for your trade-in, no credit-no problem -- how many ploys can these blood-thirsty savages use to bring their victim to their knees?

But you can arm yourself and be prepared for your showdown in order to make the confrontation as quick and painless as possible. You've just got to get your paperwork in order.

Prepare for the hunt

Experts agree that before you hit the dealership, you should do your research. You're a sitting duck if you walk into a dealership without an idea of what you are looking to spend and the vehicle you are looking to purchase. This is not to say that you need to have your mind made up before you take a test drive, but do some research to determine what cars, trucks or SUVs have the options you are looking for. In addition, know your price range.

"People need to inform and educate themselves about different vehicles instead of relying on the salesperson pushing you into something you don't want or need," says Frank Martinez, owner of FM Autos in Visalia, Calif. "List your top three choices in a vehicle," he adds. This will prevent you from wandering aimlessly around the lot trailing the smell of fresh blood in front of the predator.

Make a list of the things you really want in an automobile. Is your main requirement a cup holder big enough to hold your bladder buster? Well, then this may not be as useful for you, but if you want a v6, power steering, a sunroof and CD player, you need to do your research.

This research is made easier by the numerous Web sites available. For example, Cars.com has, "Everything a consumer needs to know about automotive shopping such as vehicle reviews, loan rates and even advice on how to negotiate a deal, the meaning behind automotive specifications, and what to look for in used cars," says Cars.com spokeswoman Leilani Monsalud.

Martinez adds that you should, "Invest two or three dollars on a buyer's guide or consumer report. It will tell you what not to buy."

Now you have your list, but the research isn't over. It's great that you have determined that you can afford a brand new Ferrari, but when you get it home, you'll have to insure that puppy and it could send you over your budget.

Therefore, before you sign on the dotted line, get quick and accurate insurance rates for your top vehicle choices. InsWeb, in Redwood, Calif., has an online service you can log on to and find out how much it'll cost you to insure that bad boy.

"Looking for car insurance is a key aspect when shopping for a car. It's a good idea to find out what car insurance will cost you before you buy. We have simplified what everybody considers a process that is not very enjoyable. We offer accurate quotes from actual carriers," says Greg Berardy, vice president of public and investor relations for InsWeb.

All right, you've got your list, your insurance premiums and you're on your way, right? Hold it right there big guy. Your job is not quite over.

Robert Blazak, author of "Carbuying 101: How to Buy a Car with the Change in Your Ashtray," says that if you are planning on financing the car, you should first check out credit unions and your bank to find out what rates they offer their customers. Credit unions usually offer great rates to their members, and your bank knows you and your financial history.

He adds that you don't have to take the loan offered by these financial establishments, but their rates may give you leverage when you are negotiating your rates with the dealer's financing manager for the best rate. And Blazak also reminds you that you shouldn't tell the dealer you are planning to finance until you have the sale determined. Your price will get confused in a sea of jargon, and you may not be getting the best deal.

Armed and dangerous

Finally, you are ready to head to the dealership. That is assuming you still have the energy to shop for a car after all of these preparations. Don't leave the house without this important information, or the long process ahead of you will just take longer.

Martinez suggests that you take old paycheck stubs. This will give the dealer proof of employment and income, making financing a lot easier.

He also says you'll need your driver's license and insurance card. The dealer will make a copy of this information before you are allowed to take your cherry for a test drive. Make sure your insurance card has your agent's name and phone number because the dealer may call and verify your coverage.

Blazak adds that you will need to bring a checkbook. You will probably need to cut a check to cover the down payment. However, he warns that you should never give the dealer money to hold your car. He says that once the dealer has your money, it makes it harder to back out of the deal.

If you are planning on trading in your old car, you will need to bring the registration and payment book for the car. He recommends that you don't give the keys to the dealer so he can have someone look over your car. You then lose control of the deal and it makes it more difficult to walk out should the sales process makes you unhappy.

Be sure you have the names, phone numbers and addresses of the people you plan to supply as references for your credit application. Calling Aunt Nellie to get her address will only slow the process.

You may also want to bring one more important thing to the dealership with you. Grab a friend, parent, spouse or your big cousin with the skull and cross bones tattoos. Don't think the days of highballing and taking advantage are over, especially for women. To a car dealer, the feminist movement means getting a chick into a perky car that matches her eyes. Don't be afraid to turn to your comrade and ask for their take on the situation. They have a lot less to lose.

Check out more tips for making the buying process more bearable from "Carbuying 101."

-- Posted: May 31, 1999