Whether it is the first car in Your life or just one of the cars You own, You can save money, avoid headaches, and get the car you really want if You just follow some basic tips.
Before getting down to buying a car, decide what kind of vehicle you need – it is Your decision what You are willing to pay for, but always put the needs before a nice, sports look. It is hard to put 2 kids, a dog and a wife into a nice, 2 seat sports coupe. Think about all the car features You might need e.g. 4 wheel drive if You happen to live in the area where it snows a lot.

Think also about depreciation, making You lose as much as 20% in the first year on the road if You decide to go for a brand new car. Sometimes buying second hand 1 year old car can save You quite a lot. Consider the auto leasing option as well – most people think it is not for them, though there are some advantaged i.e. low down payments, convenience, and accounting advantages for businesses.
The insurance coverage required depends on the area where You live. There are however several types of insurances which You ought to have, even if they are not obligatory. Bodily Injury Liability policy pays for medical or death expenses resulting from an accident in which you are at fault. Property Damage Liability policy pays for repair or replacement and legal expenses for property damaged in an accident in which you are at fault. Personal Injury Protection policy pays for expenses resulting from injury or death to you or your passengers, regardless of who is at fault. This coverage will also pay a death benefit to the deceased's survivors. Insurance policies are a constant running cost for the vehicle You purchase and depend pretty much on the value of the car You are planning to buy.
Remember also to do Your homework well – do the price and model search before getting involved with any salesperson. Be prepared for discussion and always be sure what You want. It is easier to bring the price down if You can identify the shortcomings of the given vehicle, even if it is the one You want. Check Consumer Reports for the lowdown on a model's value (or lack of value) and the auto magazines for technical and performance data. This is the source of sound technical information You may not receive from the salesperson. Talk to people who own the cars you're thinking about so you'll get a ground-level view of the good and bad points. This is again a sound and invaluable data source before making any decisions. When finally dealing wit the dealer, remember that they already have 2-3% discount on the vehicle price from manufacturer so this rebate itself is typically sufficient for the dealer – try to push therefore for the “invoice” price sell rather than regular showroom price. Commonly, showroom prices have extra 200 – 600 USD profit margin, which in the case of very popular models can go up to 2-3 thousand USD. This is the margin where You are allowed to bargain. You will also want to visit several brand dealers in the area – You might be surprised with the varied prices of the very same car in various locations.
If You happen to own a car, expect an option for a trade-in. Typically, even though it is convenient, You'll usually get more cash if you clean it up and sell it yourself. Try to avoid this option unless You’re desperate to get rid of Your old vehicle.
Finally, the financing – it is always better to cross-check the options with the local banks (remember to have a trusted bank clerk available) rather than dive immediately for the crediting offers of the dealers. Even though they are sometimes attractive, the conditions may be unacceptable if You read all the fine print in the contract.