There is no denying the fact that purchasing a car can be a nerve-wracking, stress-filled experience. Before you make a decision and spend a great amount of money on a vehicle, it pays to acquire a bit of knowledge on the subject. Keep the tips that follow close at hand, and you will have what it takes to make an optimal decision.

Visit your local bank and get pre-approved for a car loan. This one step cannot only save you a lot of time at dealership, but it will also save you money most of the time. By getting a loan at your bank, you can negotiate your interest rate more effectively; thus, lowering your overall payment.

Before you set foot into a dealership, do some research online. Check nearby dealership’s websites and record their listed price on the vehicle you want, as well as any special deals they might be offering. Having this information at your disposal will be a valuable asset when it comes time to negotiate with a salesman.

Do not base your car buying decision solely on price. While price is certainly important, so is the reputation of the dealership. You want to find a place that is known for great customer service and standing behind the cars they sell in case you have any problems down the road.

Before you start researching what kind of car you should purchase, you need to look into your current situation. Don’t decide your budget based on the car, but decide the car you will purchase based on a realistic budget for you and your family. Doing so will save you financial headaches.

If you see two price stickers on a car in a lot, you might want to head to a different location. This is a sign of a high pressure sales force who wants you to buy all the bells and whistles. If you think you can withstand their tactics, you can stay, but you may not get the best deal there.

When purchasing a car, you don’t want to tie yourself down to one specific model. Give yourself some flexibility in color and even in the car itself. If you do this, you will be able to pick up a great deal, even if it was not the first car you considered.

If you think, you will have your car for a while, pay a little more to get a few more options. In the long run, it will benefit you to have what you want. If you don’t, you may add on later and pay even more money. For example, getting a navigation system included will generally cost you less than picking one up in the future.

Break down all of your different negotiating points based on the different profit centers that the dealer has. This means you should be negotiating on price, warranties, interest rates, trade-in value and anything else that is up for negotiation. Taking this approach will get you the best overall value for the car you choose to purchase.

Low monthly payments are not always a good idea. You can easily get distracted by a low monthly payment that you can afford. This is when aggressive salespeople offer perfectly low monthly payments, while the total purchase price goes higher. Also, read the fine print in your contract before you write your name on the dotted line.

Don’t ever settle for salesmen or other people at the dealership talking down to you. If this happens, take your business elsewhere. You will never get the best deal if you don’t have a salesman that is going to listen to your needs. There will be one out there, so go find them.

Make sure you ask whoever is selling a car what kind of work has been done on it. You also want to be sure to go over it very carefully to see if you need to do any work. Bring along a friend that knows about these things if you’re not totally sure what to look for.

There are many calculators online which help you figure out what you’ll actually be paying every month on your car, so use them. While you may think a $25,000 car is cheap, the interest rate on it when you get a short-term financing deal may make the payments far higher than you think.

Talk to your insurance company before visiting the dealership. Find out how much it would cost to insure the type of vehicles you are planning on looking for. It’s important to factor insurance costs into your car-buying budget because your insurance can skyrocket when you buy a brand-new vehicle if you aren’t careful.

Test drive the competition’s cars. Most people only test drive the car they want. To get the full story, it is best to also test drive directly-comparable cars offered by other car makers. It will give you the opportunity to compare the key differences and to give you confidence in your choice.

Those looking to purchase a new car should understand that getting the latest model right when it comes out is going to limit how much you will be able to negotiate. Fresh cars are often lower in supply and higher in demand so you’ll be paying quite a bit more than those who wait a few months.

Understand that dealerships gain a commission on financing the cars they are selling. Some dealerships will offer you a great rate, asking you to sign paperwork and then later tell you that you do not qualify for that rate. In some areas, you might be committed to the purchase, even at a higher rate. This is a costly mistake, and one you should always avoid.

Car shopping is something that many people dread, but see as a necessary part of life every few years. By spending a bit of time in advance studying the options, it really is possible to have an enjoyable experience. With any luck, the advice in the article above has given you the tools to do just that.