Things you ought to know before you buy a car:

The best way to look at how to buy a car is what you should know before during and after. Before you start thinking about how great you would look in the newest SUV or the latest sports car you have to determine a few things. Those things are as follows:

What does your budget look like? The fact is that just because a bank or a car dealership approves you for a certain amount for a car does not mean you can really afford that amount. So, before you ever step foot on a car lot, or turn on the internet to browse, you need to sit down and see how much you have to put down on a car, how much you can realistically afford for a monthly payment, and simply ask yourself how much debt you want to get into for something that is going to depreciate every time you use it. Once you have gone over these things, you can eliminate cars that do not fit your budget. It is a waste of your time, and the sales associates time to have you looking at a $40,000 SUV when you can't even afford the $25,000 sedan. You should set a reasonable price range for the car and don't spend time looking at ones that do not fit that range.

It is probably worth mentioning that while you are figuring out your budget you will want to account for the cost of fuel to operate, repairs, and maintenance costs. If you spend too much on the car, will you have enough money in your budget to use it?

The next thing you need to know before you buy a car is what your credit history looks like. If you are not going to pay for the entire car upfront, or in other words, if you are getting a loan for the car, whether through a bank, or the dealership itself, you will need to know what kind of credit you have. Some people see great deals being advertised on television, and get excited about the prospect of a new car without realizing that those deals are only for people with good credit. You may want to consider paying for, or using one of your annual free reports so that you can get a look at your credit before you go to a dealer. Credit means buying power, and knowing what kind of power you have will help you stay in control when you are buying a car.

The last thing you need to know before you go to buy a car is what you actually need, versus what you want. You will want to ask yourself questions such as how often you will need to haul heavy or large equipment, (which would require the use of a truck or SUV), you will need to ask yourself how many people you will typically be driving. If you have two children, and you drive a carpool with three other children, a typical car won't work for you. You will want to ask yourself if you live in an area or work in an area that would require any specific sort of function such as higher engine power, four-wheel drive, etc. How much do you drive? If you are going to be using the vehicle for long commutes then comfort and gas mileage are going to weigh more heavily than other features. Do you need to be able to tow? Some sedans can tow light trailers, but if you wanted to tow a boat, a horse trailer etc. you would need a vehicle that could support that.

While the above considerations seem obvious, the fact is that there are tons of makes and models to choose from, and frankly, eliminating cars that do not have what you require is a great place to start when it comes to buying a car. You may love that flashy sports car, but if you have to fit car seats in the back, and it is too small, or if you require four doors, you can eliminate it.

OK, so now you know a few things about yourself, the next thing you need to do is learn a few things about cars. There are two different areas. First, you need to know a few things about buying a used car. Second, the things you need to know about buying a new car.

What you should know about Used Cars:

Buying a used car is not bad, in fact many people buy used cars, but many of the horror stories of car buying come from used car purchasing. So, being a wise consumer is a good place to start when buying a used car.

One thing every potential buyer of a used car should be aware of is that odometer fraud is real and it matters. The odometer tells you how many miles the car has been driven. This affects the cost of the car, the life of the car, and the condition. Because high mileage can decrease the value of the car, some people practice odometer fraud. So, be aware that this happens, and when you can help it, only buy a used car that has certified mileage.

The next thing you will want to take into account when purchasing a used car is whether or not the car has ever been in an accident. 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. Knowing the car history can help you make a better purchase. So, order a history report from CARFAX.com. You want to make sure you know things like

• the number of previous owners
• if the car was ever involved in an accident
• any previous mechanical problems
• the maintenance history of the car
• if it was ever salvaged, stolen or recalled
• if it ever failed inspection
• if someone tried to create a fraudulent odometer reading

Do not just take the seller's word for it, ask for maintenance records, check on CARFAX.com, and do your best to get accurate information.

Next, know what the car should be sold for. There are a number of handbooks that will provide you with valuable pricing information. These include:

• N.A.D.A. Official Used Car Guide
• Kelley Blue Book Used Car Guide: Consumer Edition
• Consumer Reports Used Car Buying Guide
• Edmunds.com Used Cars and Trucks Buyer's Guide

They will have the make, model, and mileage break downs to indicate what the price ought to be. If the sales price does not fit near the recommended price in these, you may want to look into why that is.

The next thing you will want to know when looking to buy a used car is some of the best places to purchase used cars. There are several places to locate and buy a used car including a used car dealership, a superstore type dealership such as Hertz that specializes in used cars, the web, print classifieds, etc.

No one place is better than another for sure. You can get a great deal from a private seller, or you can get ripped off. The same holds true for dealerships, websites, etc. If you are going to buy a used car, do the following things:

1. Have a mechanic check the car out, do a full inspection, check for everything, such as indicators of previous accidents, etc.
2. Run a Vehicle History Report to get a full history of the car. These can really give you peace of mind.
3. Read before you sign anything. This is especially important if you buy through a dealership as often they will have an "As Is" statement in all that paperwork you have to go through. Always insist on 30 days to make sure the car is in good condition.
4. Have your own financing and loan approvals ready before you go to buy the car. Sometimes dealerships will tell you they can give you a great price, but then they hit you with a terrible loan interest rate, etc. So, know what rates you qualify for, and how much you can get a loan for BEFORE you go to buy.

New Cars:

Basically if you are going to buy a new car you want to know essentially the same things as you do with a used. What should the car price be? What kind of warranty do you get? What kind of mileage does the car get? What is the typical maintenance like? However, most importantly, before you ever buy a new car, make sure you have your own financing and loan approvals so that you do not get hit with too high or interest rates, or bad loan terms.