IN GENERAL
• Start with a copy of your credit report. This is really true if you know there's something bad out there. Never, never go car shopping until you know your credit score.
• Do not keep applying over and over to various online car loan Web sites. Every time your credit is pulled, and is rejected, your credit rating goes down.
• Don't be in a hurry: 58 percent of all Americans do not buy a car within their first 30 days of starting to shop.
• Remember that most dealerships work on monthly quotas. Looking to buy a car toward the end of the month may put you in a situation where folks are more willing to deal. That's especially true this year, as auto sales are in a deep slump, and dealers need all the customers they can get.
AT THE DEALERSHIP
• Try to settle on the total price of the vehicle first. Don't think in terms of monthly payments because any monthly payment can be made to match your budget by stretching out the length of the loan.
• When it comes to your trade-in, consider selling your old car on your own. It may be more of a hassle, but you can often get a higher price. Dealers are famous for "adjusting" trade-in values up as a way to keep from adjusting the new car price down.
• And finally, the bigger your down payment, the better you will be treated. Experts suggest putting at least 20 percent down as a way to avoid becoming upside-down on your car loan. If you are in a situation where the total note is worth more than the value of the car (if wrecked or stolen) you may have to pay gap insurance. It's more money, but it really is for your protection.
