Purchasing a car is a big deal. This major expense can affect your household budget for years to come. Educating yourself on all aspects of your potential purchase will make your buying experience so much smoother. It's extremely important to do comprehensive research before walking onto the showroom floor.

You don't have to see dollar signs in the eyes of car salesman anymore. You certainly don't have to hear the "ca-ching" of a cash register as you purchase a vehicle at sticker price. You main goal is to enter the dealership with the tools to get the very best price on your new vehicle. Whether it is your very first visit to just look at a vehicle or actual purchase time, educating yourself will make the visit less stressful.

Your Checklist:

Options List: Everything you want on your new car.

Price Lists: Aim for three bargaining costs: dealer cost, true market value, and target price.

Financing Options: Dealer or bank financing arrangements.

Proof of Insurance: Car insurance information.

Your Checkbook: For down payment, taxes and tags.

Options List

You've heard it before, the Internet is a wonderful thing. Research your new car on the net. Begin at the website for the auto manufacturer. Major auto maker sites let your "design and build" your own vehicle exactly to your specifications. Read option packages carefully. As you select your features, prices adjust as you add and delete options. Now you've got your basic listing of absolute must-haves for your new vehicle. The vehicle price shown on this list is what the dealer would like you to pay for a new vehicle. That doesn't mean you have to pay this price. Consider this price the very highest cost of your potential new vehicle. Print out your choices and keep it handy for your visit to the dealer.

Price Lists

You already have the dealer price for the vehicle. Keep this handy. Once you've established which bells and whistles you must have on your new car, take yourself to another web site called Edmunds.com. This comprehensive site provides new car information, prices, and reviews. It will also help you establish the most accurate assessment of the "true market value" of a vehicle. True market value is the average price that buyers are paying for cars at that present time in your area. Under no circumstances should you pay more than this price. Follow the prompts for finding out the true market value of your vehicle and print out your results. These results will also be used at the dealer.

Now visit CarsDirect.com. While this site may seem very similar to Edmunds.com, your reason for visiting it is different. At CarsDirect, you will be able to establish a more exact "target price" for your car. This target price should be just about $600 over invoice price. Invoice price is what the dealer pays for a vehicle. It's fairly safe to assume that the dealer will make money even if you pay invoice price for a car so don't feel bad for the salesman.

Many dealers offer incentives and rebates or low-interest finance offers to generate purchases. Rebates are given directly to the dealer by the manufacturer for car sales. Some dealers pass this savings on the customer by reducing the vehicle price. Many dealers offer this rebate if you accept their financing. It's important to make sure your choose the bank offering the best rate for financing. Higher percentage rates will sometimes surpass any money you might save by accepting a rebate on dealer terms.

Incentives are offered by car manufacturers to dealers to move stock off the lots. However, dealers are not obligated to pass on these "bonuses" to consumers. Incentives are goal-oriented to motivate dealers to sell. Knowing any dealer incentives might allow you to have that extra bargaining chip to get the very best price for your new car. Both dealer incentives and rebates can be researched on Edmunds.com and CarsDirect.com.

Financing Options

If you can't pay cash outright for the vehicle, setting up financing before you go to the dealer is a must. It's very reasonable to ask about financing at the dealership. Use this to comparison shop for the best percentage rate. Use payment calculators offered at Edmunds.com and CarsDirect.com. It's possible your own bank or credit union will beat out the dealer. Check out your options thoroughly. Regardless, you must have some idea of how to pay for your vehicle if you would like to drive it home. Bring your financial documents to the dealership. This includes all loan paperwork and most likely, a check to present to the dealer right before you drive your new car off the lot.

Proof of Insurance

Car dealers are tasked with not only providing new vehicles but also abiding by state laws that require them to submit title and tag information for new vehicles. Automotive insurance information must be submitted to complete this paperwork. Bring your insurance card or paperwork with you to the dealership. Everything required to apply for title and tags will be on these papers, from the insurance company phone number to your policy number.

Your Checkbook

Yes, you're going to need that. Many people choose not to finance their taxes and tags, which sometimes add up to thousands of dollars. Just as many folks choose to make a down payment on their new vehicle to reduce the overall financed amount of the vehicle. Be prepared for this step of the process.

Research is the very best gift you can give yourself to prepare for a trip to the dealership. With all the varied tools at a car buyers disposal, the job of purchasing a car is no longer a chore. Getting the very best price in addition to all the options you want on your vehicle is no longer out of reach. Make educated choices and enjoy the process of buying your new car!