Buying a new car stirs up images of slick salesmen, pressured-filled hours of price negotiations, and the fear of overpaying or buying a car that is well beyond your means. But the internet can be your most powerful tool, and ally, when it comes to buying a new car.   

Credit Expert, Jose Cuevas says, “It’s very important to get on the Internet and research every single aspect of the car that you’re looking for. This is vital because once you get to the dealer it’s going to help you out by knowing the dealer incentives, knowing how much the car is as far as the invoice, and knowing in advance the equipment that you’re looking for.”   
You can save money and time by going online.  

First step in buying a new car  

• How much can you afford?
• What kind of car do you want to buy?

Your first step in buying a new car is to know how much you can afford and what kind of a car you want to buy.   

Try to get a pre-approved loan, sometimes referred to as “direct financing,” before you buy a new car.   

“If you can get pre-approved, before finding out all these things, this is a good thing. It’s good to have a bank where you’ll know what interest rate they’re going to give you. You’ll also know in advance what your payment will be. A lot of people may want a Mercedes but they can really only afford a Toyota. It is very important for you to know your budget so that when you walk out of that dealership you walk out with a smile on your face,” says Cuevas.

Once, you’ve made your decision on how much you can afford and the car you want, you can start researching that car model, and its features, online.   

Searching for a new car on the web:

• Car model
• How many people are in your family?
• How many miles do you drive to work?
• Color
• Interior and other accessories    

“For example, you can just go onto Toyota.com or Ford.com and it’ll ask you what model you are looking for.  Are you looking for an SUV?  Are you looking for a four-door sedan?  Are you looking for a coupe?  It will really help you out to go through the internet and find out what you want. Some questions you should consider are; how many people are in the family?

How many miles do you drive to work?  What is the right color of car for you?” says Cuevas.

To find the “Blue Book” value of your current car, visit www.kbb.com

And, if you’re thinking of trading in your old car, you can easily find its “Kelley Blue Book” value online, by visiting www.kbb.com.  

Kelley Blue Book is the United States' largest automotive vehicle valuation company.  The company's website is a source for new and used vehicle pricing and information.

Reconditioning is the cost associated with reconditioning the vehicle to the manufacturer's specifications and performing all required safety checks to make it ready for sale. 

“Blue Book value is researched on used cars.  Kelley Blue Book is a guide that tells you, ‘Your car is worth X amount of dollars but you have reconditioning.  Reconditioning on miles.  Reconditioning because the car has three dents.  It has a scratch or the color is fading. So expect the reconditioning factor. It is a big part.  For example, you’ll tell the dealer ‘Look, I know that the Kelley Blue Book value for my car is $7000,’ and he is going to say, ‘Yes, but the reconditioning is $3,000.’ So expect that out of a car dealer,” says Cuevas. 

You can purchase new and used cars online.  

Doing your homework on the car you want to buy may save you hundreds, even thousands of dollars.

“Once you know how much the car is worth, how much the rebates are, and what  incentives the dealers have, you have every alternative to tell him, ‘If you don’t give me the best deal, I’m going to go to the next car dealer,’” says Cuevas.  

Experts agree there are certain advantages of searching for your car online over visiting your local dealership.

And, you don’t have to worry about asking too many questions online.

No matter how great it is to shop for your car online, be sure to go and test drive it to make sure you love it.

When you’ve found the exact car that you want to buy, you then need to test drive it by visiting the dealership.  

If it passes your tests, now it’s time to research for the lowest price.  You can request a free quote through most car websites, who will then forward it to the dealership’s internet sales department.  

“10 to 15 years ago, you never thought that you could buy a car online, but a lot of people are making negotiations online,” explains Cuevas.

Price quotes from online salespersons are often very close to the absolute lowest price for a vehicle, but feel free to ask for an even lower price.

Most online sales departments usually make their commission on volume rather than price, making it a better deal than visiting a dealership.

Experts recommend limiting your search to vehicles within 20 or 30 miles of your home.

Once you’ve negotiated a final price that is acceptable to both parties, it’s time to sign the contracts and get your new car.  Unfortunately, you can’t do this online.  

“Once you make the agreements and you know your payments and you’ve made the deal, you have to go to the car dealer because you cannot do that online. You’ve got to sign a legal binding contract in person,” says Cuevas.

But, before you sign that contract, make sure you understand what you are signing and what it means.  Ask questions if you don’t understand and don’t ever feel like you have to be in a hurry.  

“It’s definitely legitimate to do this on the Internet because they cannot put something online that’s not true.  From dealer incentives to invoices and equipment, the Internet will guide you just like it was mom and dad- but with actual proof in black and white and in writing. Once you know your equipment, once you know exactly what you want, you’re definitely going to get what you expected,” says Cuevas.