Even in a buyer's market you need to do your homework. Here are some suggestions to help you get a good deal.

First do some shopping - online or on the lot. If it is on the lot, your best bet is to go when they are closed so you can leisurely look instead of someone showing you. Make a list of cars you like with sticker price, any special features. If, you are looking at used cars note total mileage and year. You may also want to note if they are still under manufacturer's warranty.

Now it is time to do some research. Narrow your list to two or three makes and models. Go online to one or more of the manufacturer, dealer, or generic auto sites and research the models you are interested in. Take advantage of their comparison tables and compare your top picks for total mileage, price, special features, and gas mileage. Remember gas mileage figures into your overall monthly cost. Use the online calculators to estimate payments. Then go to the one or more of the insurance sites and get a quote for insurance. Don't forget to make an estimate for gasoline, and maintenance (an oil change every 3-5,000 miles). Add all these together to come up with a monthly cost.

If you are like most of us, that monthly cost is more than you anticipated. So now you want to figure out how you can get it to fall within your budget and still get the car you want. It's time to come up with a negotiating plan. Go back to the generic car sites and find out what the trade- in value is for the car you want and for your car (if you are planning on trading it in). The trade-in calculator will also give you what the estimated retail price would be for the car. Contact two or three lenders to see what interest rate they can give you. There can be a big difference (as much as three pre-cent) from lender to lender which adds up over time. Some lenders also have in-house auto advisors that can help you find the car you want at a great price and there may be an incentive to use them - such as a discounted interest rate.

Now you should have a clear picture of what you can afford both overall price and monthly cost. With these two figures in mind, and your selected make and model, you are now ready to do some real shopping. Again use the online sites to find the dealers that have your chosen make and model available. You are now ready for a day of shopping, driving, and haggling with the dealers. Once you have settle on the car, give the dealer the opportunity to give you their best price and financing and compare it with what you can get from a lender. Now enjoy your new wheels!

Resources:

Nancy Worrell is author of The Complete Idiot's Guide to Backyard Adventures and contributed to The Unofficial Guide to the Southeast with Kids. Nancy recently moved to Tallahassee, Florida so she could explore her backyard with three adventurous granddaughters.

Nancy Worrell © 2009