The biggest question in the car buying process is whether to buy new or used.

#1 New or Used

The average new car costs more than double what the average used car does. (The Kelley Blue Book pegs the average new car price in 2005 at $26,100 and the average used car price at $13,000). It's not surprising, then, that used cars outsell new cars three-to-one.

New car loan rates are about the same as used car loan rates. The major difference between the two is the length of the loan. Most used car loans are for no more than 36 months whereas new car loans can be 60 or even 72 months long.

When the negotiations are done, most consumers relax when buying a car.  The hard work is done.  The hard sell is over.  It's time to celebrate a victorious purchase of a new or used vehicle.  Most consumers don't realize that the true hard sell is just about to start.

In a perfect world, a finance manager, business manager, or whatever title is given to the person in the back that prepares paperwork will be just that: the person that prepares paperwork.

In the real world, the finance manager is probably one of the best and most persistent salespersons the consumer will ever meet.

"Why are you trading it in?"  There are various answers, of course, but one of the most perplexing responses is, "It's not really what I wanted."  It begs the question, "Well then why did you buy it in the first place?" Whether they know it or not, the most common "truth-serum" answer is that they just weren't prepared before they went shopping.

Buying a new or used car is a very important event.  It is normally a long term commitment, most likely expensive, and represents a place where you and your family spend a lot of your time.

Just as most people don't get married or buy a house or go to a particular college based upon impulse, so too should car buying be treated with respect and given a proper amount of preparation.

There is a ton of information out there about scams and deceit that happens when buying a used car from a dealership. There are definite pitfalls to buying from an individual as well. When it comes down to it, the real question is, "How hard are you willing to work for a good deal?"

Conventional thinking is that it is easier to buy a vehicle off of an individual than it is from a dealership. Fewer hoops, fewer lies, cheaper and less hassle — or is it?

Many car dealers are slowly, surely, and finally starting to become more truthful in their dealings with customers. It isn't because they ever really wanted to. The information on the Internet in this highly competitive market have forced auto dealerships to "come clean" in many aspects of their dealings.

Trade allowance.  Trade difference.  Actual cash value.  Replacement value.  Anticipate market change.  Stealing a trade.  Trade stretching.

The most complex aspect of buying a vehicle from a dealership is working with the trade in.  Despite most consumers' best efforts, it's often difficult to get a straight answer to the question, "How much for yours, and how much for mine?"

It usually isn't an attempt by car dealers to be obtuse or really "stick it" to the customer.  In truth, most consumers would laugh if they knew how much the dealership is actually giving them for their trade.

It's a buyer's market.  The internet has made it possible for consumers to know everything they need to know about a car from reviews to used car history before the customer every goes to see the dealer.  Still, the one step that many consumers forget to do is to get their financing secured before making the trip.

The finance department is one of the last areas where a car dealership can make good, consistent money from their customers.  Some dealerships even sell vehicles at cost without fuss or haggling in hopes that their efforts will be rewarded in the finance department.

Consumers can secure their financing online through various 3rd party lending services.  They can go to the manufacturer websites and get pre-approved.  Some carsites.com/">Auto Dealer Web Design firms even offer 30-second pre-approvals through their dealerships' own finance department.

Many of us have been at the car dealership and have been drained by a salesperson during price negotiations for the purchase of a new car. Most people give in too easily or do not negotiate at all to avoid the dreadful act. This only means more money in the car dealers' pocket, while you are out of several thousand dollars! Yes, they make that much in profit per car.

This article unveils the dealer's selling tactics and how you can get around them. But before we dive into the new car buying tips, we need to understand what makes up the dealer's profits.

Four-Square.  It's one of the most common car deal worksheets used today.  It's been around since the 80s.  It's designed to rip customers off.  How?  Normally, the 4 numbers in the squares do not directly include the only one that is important: Trade Difference.

Having car buyers at the dealership, at the negotiating table, excited about a vehicle and ready to make a purchase is the only time the dealership has a chance to really make some money.  The best way they can do this is by making consumers focus on payments.

This is where the four-square worksheet and other tools like it come into play.  Usually the four squares show their price, the value of the trade, the cash down, and the payment.  Here is a normal method of presenting the deal:

There are dozens of sites, thousands of dealers, and millions of opinions that tell us how to buy a new car.  Last year's leftover model?  This year's hot new one?  Take the incentive or wait for the next batch?

Buying low, low mile used vehicles is considered by most "experts" to be the best way to buy a car, but some people just refuse to buy something that someone else has already driven.  For those proud soles, this article will tell you the best way if you absolutely must have it new.

Order it.

That's really the gist of this article. The punch line. The moral of the story.

Before you buy a car, you need to check out on certain essential aspects of owning a car. Having done so, you can rest assured of a hassle free ownership.

Be sure about your budget. Curb the temptation to exceed the amount you can afford. If you do exceed, you need to curtail some other expenses or have to invite trouble in terms of regular monthly instalments. Choose the best plan which suits you.

Decide on the type of car you would like to buy. Make up your mind on whether you want a 4 door sedan or a 6 people van. If you wish to buy a car just for the sake of transportation, then avoid buying luxurious cars. If it is for personal love of cars then you can go for a SUV or Sports car.