The most important part of buying a car is to simply research the vehicle before entering the dealership. I would recommend that two months prior to a vehicle purchase, to begin researching. Look for vehicles that will suite your needs, has the looks you want, and will provide you with enjoyment. Compare your selected vehicle with others that are similar and weigh all the options and most importantly, learn what the cost is. There is much more to looking at prices than the sticker on the window. You can easily find out what the manufacture’s invoice cost is by going to websites such as Kelly’s Blue Book (www.kbb.com) where you can find both the MSRP (Manufacture’s Suggested Retail Price) and the invoice price on any make or model. You can even look up information on pre-owned vehicles perhaps for your trade-in at kbb.com. If you are worried about getting a good deal, just remember, a good deal is one that you can afford comfortably.
Next, when you are at a dealership and have selected your new car, usually you have already begun to emotionally connect with it, and the last thing you want is a surprise. You do not want to hear numbers for the first time at this point. When considering a monthly payment, there is more to dividing the price of a vehicle by how many months you plan to finance. There is interest, documentation fees, vehicle registration fees, vehicle title fees, accessory fees, tax, etc. All of these add up quickly, so it is best to anticipate all of the factors when determining what you can afford to purchase. Many manufacturers have great resources that you can use such as calculators to figure out a monthly payment (
http://automobiles.honda.com/tools/finance-calculator.aspx). Then there is leasing, which is a great option for people who do not mind a monthly payment because when leasing you will never own your vehicle. The same rules apply even if you lease a vehicle versus financing.
Stay tuned because I am sure you have heard about the "real invoice" which is lower than the invoice advertised, and you are probably wondering if such a thing exists. Well it does, and I plan to tell you about it soon...