While the new car smell can be intoxicating enough to peak emotions and create a sense of attachment even before the finer details are all fleshed out, it is important for buyers to approach the purchase with a level head. A car is an expense that can and should be properly managed and this process starts with the handling of the negotiations before the purchase is finalized.

Take a look at the following tips for buying a new car.

Time Your Purchase to Get the Best Deal

Christmas is a notoriously great time to buy a car because car dealerships generally experience a slowdown while people are preoccupied with other types of spending. This means that on top of the general feeling of good cheer, they are eager to make a deal because they know that December is historically a slow month for sales. Car buyers can capitalize on this information and time purchases to get a great discount. TrueCar.com is a great resource for finding this type of information.

Don’t Let Dealers Leave You Out of the Loop

You may be interested in a car but for any number of reasons the dealer you originally approach is unable to provide you with a vehicle that meets your exact specifications but offers to contact a fellow dealer on your behalf. It can be tempting to spare yourself the hassle of tracking down the vehicle yourself but allowing dealers to communicate on your behalf puts you at a disadvantage. You may be at risk of binding yourself to a color or model that you did not want because your agreement was not specific or end up paying transportation and other fees that show up only at the signing date.

Trade-ins Can Go Sour if You Still Owe on Your Old Car

It is generally not a great idea to try to trade-in your current vehicle if you still have a loan tied to it. In these instances, the dealer agrees to pay off the outstanding loan within the time frame stipulated, but if this agreement is not in writing there is no guarantee that this will actually happen. You could end up with loan fees on your old vehicle because of tardy payments and this can do damage to your credit score.

Go for a Manufacturer Known for Giving Great Discounts

Another great way to save is to go for a manufacturer that has a reputation of giving fantastic discounts and buyer incentives. Some manufacturers are tighter on their sales prices than others and a bit of research can help you to narrow down your choices before you hit the dealership.

Buying a car is a lot more complex than simply deciding on a color and a style. There are insider secrets that can save you a great deal of money that can go a long way towards your insurance or even maintenance during the term of your ownership.

Buying a new car is a major investment that could tie up hundreds of dollars per month for several years. Currently car dealers are courting potential buyers with incentives and reduced prices however it is not just the price of the car that is important. Unless you are paying cash up front for your new wheels you will have to acquire a car loan. Finding the right car loan is just as important as getting a great sales price. Here are the top tips to ensure you are getting the best car loan.

• Review your credit report- Before you start comparing car loans, take the time to review your own credit report to see what the lender will be viewing. Many times consumers think they know what is on their report only to discover during the loan process that there is information reported that harms their credit. Knowing what information is reported will help you avoid any surprises. People who have less than stellar credit may want to consider delaying the purchase while they work on improving their credit.
• Get pre-approved- To avoid being at the mercy of the car dealer financing, shop for your car loan before car shopping. Credit Unions and online banks provide additional options beyond your local bank. If you are pre-approved for a loan, you have more leverage when negotiating both price and loan terms with the dealer.
• Lower monthly payments will cost you- Avoid talking monthly payments with the lender. The focus instead should remain on the total amount of money you will be responsible for repaying. A lower monthly payment for a longer loan period benefits the lender and dealer but will only cost you more money.
• Understand the terms- Do not allow yourself to be pressured into signing on the dotted line if you need more time to review the paperwork. You are entering a contract which is legally binding therefore you must understand the conditions to which you are agreeing. If you need more time, including taking the loan paperwork home for review and the dealer or lender protest, continue shopping elsewhere.
• Ask if you are getting the best rate- You may think you are getting the best rate the first time around, however lenders are under no obligation to offer the best rate available. If your lender knows you are shopping around they may be more inclined to give you the best rate to gain your business.

Borrowers who are afraid to ask questions, negotiate or walk away from a bad deal will end up paying more up front and during the loan process. Finding the best car loan is not difficult, however it does require some effort and due diligence on your part.

With fall and winter approaching, it may be time to get your vehicle primed for the change of weather conditions. It has long since been a worry of many drivers that the car repair companies that service our vehicles are only out to rip off trusting people who are not mechanically inclined. While not all companies have this as their mission statement, it can be difficult for car owners to know what is really necessary work and what does not have to be done to a vehicle to keep it running optimally.

Here are some tips for ensuring you are maintaining your vehicle as needed without doling out extra cash for unnecessary repairs:

 Stay On Top of Maintenance

If you consistently keep up with regular maintenance, you lessen the likelihood that you will have to pay for major repairs. Perform regular maintenance checks for your oil and other vehicle fluids, inspect your car before each use for flattening tires, fluid leaks, or body damages like scratches, dents, or rust spots. Listen for strange noises during operation of the vehicle. Turn down the radio and be sure that there are no unusual sounds while you are driving. Pay attention to how the car handles. Do the tires ride less smoothly than in the past? Are your brakes working properly for each stop?

Get An Estimate

 If you do have a repair situation, make sure you get a second and a third opinion if you are working with a mechanic you are not familiar with. Never agree to repair work, unless it is a dire emergency, without getting estimates for the repair work. You may be surprised to see the difference in opinion and price on what repairs are necessary.

Don’t Leave The Garage

It is common practice for car owners to save time and drop their vehicle off at the garage to be picked up after service is complete. If you are not on site, mechanics may take the liberty to perform repairs they felt like doing without having to ask permission. Never just leave your car and tell them to do what you have to do. This actually does give them to freedom to run up a costly repair bill. Let the garage know you will need to be contacted about any repairs above and beyond what is initially agreed upon. If you do stay on site, keep tabs on who is working on your vehicle. People who are being watched may be less likely to pull a scam or steal items from the vehicle.

Gain Some Knowledge

If you are clueless about car repairs, it can be easy for a mechanic to sell you what you don’t need. There are a lot of informative books and online information that can teach you the basics. If you walk into the garage prepared to discuss the issues, you will be less likely to get taken. Ask the mechanic to show your broken or worn parts they claim must be replaced immediately.

Don’t Fall to Pressures

If you are not comfortable or feel pressured into repairs you don’t think sound right, don’t be afraid to take your vehicle somewhere else. Speak with the mechanic before agreeing to any repairs and go with your gut. If you feel uncomfortable about the pressure they are putting on you to get work done on your vehicle outside of the original scope of work, take your vehicle elsewhere. Be sure to check out the garage or mechanic before getting the work done. Ask for references from others you trust.

When people buy a new car, often they are not thinking very far down the road in terms of safety. If they’re in an accident, they expect their insurance company to pay for it. Often times, this is not exactly what happens. Instead, the insurance company pays for part of the claim, and you’re left paying for the rest. This is especially troubling if you are no longer driving this car. Then you’re stuck paying for a car you’re no longer driving.

Gap insurance can save you this hassle. The idea of Gap insurance is that if you are in an accident and your car is totaled, your real car insurance will pay for their part. Then, whatever is left over will be paid off by the gap insurance. This insures that you do not have to pay anything for the car you are no longer driving.
When you drive a new car off of the lot, it automatically depreciates in value. The value of the car is what the insurance companies use when deciding how much to pay in damages. This is why many insurance companies will not pay the full cost of damages on your totaled car. While this doesn’t seem fair, it’s a practice that happens a lot throughout the country each year. People that did not invest in Gap insurance are left to pay off their dead car, while paying off a new car in the process. It’s a hole that many people can’t seem to dig themselves out of.

Gap insurance is reasonably priced, but it is best gotten from your bank or credit union. If this is not possible, it is usually available through different dealerships. Out of all the extra things to invest in when buying a car, this may be one of the most important.

Whether the car you are buying is new or used, Gap insurance can save you a lot of time and money. Don’t let the car insurance company get away with not paying off the original value of the car. Trust me, most companies practice this and can easily get away with it. If you want to save yourself the hassle, get Gap insurance. It may not seem important now, but if you ever total your car, you’ll regret not having it. Ask your bank about Gap insurance, before it’s too late and you’re in the hole with a broken car.

When shopping for a car, you may be tempted to buy the first car that is offered to you. While you may get lucky and find a great deal, here are a few tips to help you pick a car that is right for you, and your budget.

Shop Around: Don’t feel like you have to buy a car from only one dealership. If you have a specific car in mind, check online first. While you don’t have to buy the car online, you may find a great deal on a car at a dealership you never would have thought to go to. Also check the newspaper for people personally listing their cars. In these tough economic times, people have been known to sell their perfectly good cars for low prices because they are strapped for cash.

Get The Facts: Sometimes a good deal may be too good to be true. Always get the Carfax on any car you plan on buying. Even if a car has no visible damage, it may have been in an accident and had body work afterwards. This means that the inner workings of the car, such as the frame, could still have damage and be dangerous to drive. While most dealerships by law are required to disclose this information, you never know if anything is being hidden from you. If they refuse to show you the carfax, you should refuse to buy the car.

No Prices, Be Weary: If there are no prices directly on the windows of the car, be very cautious. This is a tactic used by some dealerships in order to either get more for the car, or keep you confused. A confused customer is the easiest to rip off. Try sticking to dealerships that are upfront with their prices. Carmax is a great example of this. They are no-haggle, so the price on the car is the price you will pay.

Be Direct: If you ask the dealers specific questions, sometimes they will try to scoot around the question by answering something similar, but not your actual question. Do not let them do this. Continue to ask them the question you want answered until they actually answer it. You as a customer have a right to know what you are getting into, without gimmicks or tricks.

If you’re careful, you can get a great deal on a car in these tough times. Just do your research, and try not to fall for any of their marketing tricks. Then you’ll be on the way to a new car, and still have some cash in your pocket.

The Cash for Clunkers program – or the Consumer Assistance Recycle and Save Act of 2009, it’s official name, provides a federal government voucher up to $4,500 to help offset the cost of new car purchases or leases over the next five months. Basically, the rebate is just deducted from the price of a new car that you buy when you trade in a qualifying car under the Cash for Clunkers program. You can only trade in vehicles less than 25 years old that are in drivable condition and that have been insured for the last twelve months. In addition, these cars must have a fuel economy rating of no more than 18 MPG combined city and highway. You can find out your car’s rating by visiting fueleconomy.gov.

The act has been on the receiving end of some criticism, since the program has a number of drawbacks that make it difficult for most people to qualify or benefit from the program. For example, the Cash for Clunkers rebate program is a credit given in place of the money you would normally receive for a trade-in, (not in addition to it) since the “clunkers” are to be disposed of in an effort to get the bad-for-the-environment, fuel-guzzling beasts off the road – and if the dealers are disposing of the vehicles without the ability to resell them, it’s worth nothing to them as a trade-in. If your car is worth more than $4,500, you’d be better off trading it in or selling it outright than you would be to turn it in under the Cash for Clunkers program.

Not to mention that if you’re currently driving around in a vehicle that’s worth less than $4,500 and costing you half your paycheck each week in gasoline, are you really in a financial position to purchase a new car during what’s being called the “Great Recession”? A credit of $4,500 off the price of a new car still leads you several thousand dollars to finance or pay for. Driving a gas guzzling car with no car payments is still probably cheaper for you than paying a $300 or higher car payment each month.

In order to get the $4,500 credit on new passenger cars under this program, the vehicles must have a fuel economy of 22 MPG or better. You’d also need to purchase a car with a 10 MPG improvement or more over your “clunker”. If the new car you purchase gets four more miles to the gallon than the old car, then you would qualify for a $3,500 credit instead of the full $4,500. For trucks and SUVs, the new vehicle must get at least 18 MPG but you can qualify for a $3,500 credit with as little as a 2 MPG fuel economy improvement over your “clunker”. With just 5 MPG improvement, you increase the credit to the full $4,500 allowed.

Are their any situations when the Cash for Clunkers program may in fact help reduce your need for vehicle financing? During a time when credit is becoming increasingly difficult to qualify for, having $4,500 deducted from the price of a new car will reduce the amount of money you need to borrow to finance that vehicle. Combined with any dealer rebate incentives and price haggling you do, as well as your own down payment, the extra $4,500 can play a significant role in decreasing the overall price of the vehicle and help you qualify for financing that you may otherwise not have been able to get.

Another scenario where the Cash for Clunkers program may be beneficial are for families who are on the more affluent side and have multiple vehicles. Sometimes families keep an old clunker of a pickup truck around for taking their garbage to the landfill, for example, or for helping their friends move furniture every now and then. If you’re in the market to replace this vehicle with a more reliable, more gas-efficient model, the Cash for Clunkers program can help you save $4,500 on the cost of your replacement.

Unless you work for an insurance company or are an insurance broker the thought of regularly reviewing your insurance policies is probably a dreaded task. This is understandable considering the fact that most policies are written in a language the average person finds confusing at best. Nevertheless, reviewing or updating your insurance policies should be done at least once per year under normal circumstances. Not only will annual insurance reviews ensure you have adequate coverage that reflects changing financial or personal circumstances, you can also compare rates to other companies to guarantee you are getting the best rate possible. If you haven’t done so lately, now is the time to review and update the following policies.

• Homeowners insurance- Your home is likely your biggest asset and as such should be on the top of your list of policies to review annually. Homeowners insurance generally provides coverage for your home, personal property and liability in the event of an accident or injury that occurs on your property. Make sure you update your policy to reflect any changes in the value of your home or major purchases since your policy was written. If you have made major renovations or have purchased major appliances, jewelry or electronic equipment that is not listed on the original policy you will want to make sure the increased value of the home or personal property is covered on your policy.

• Auto insurance- All vehicles must be insured with each state having different minimum requirements. If you are financing a vehicle your lender may require different levels of coverage than the state minimum while the vehicle is financed. Once your vehicle is paid off or if you pay cash, you might be tempted to lower your coverage in order to save money on monthly premiums. Keep in mind that lowering your coverage may help your current financial situation however should an accident occur that results in the loss of use of your vehicle you will then be faced with purchasing a new or used vehicle at a time when you can least afford it. For this reason it is important to review your own financial situation before lowing coverage. If you have the resources to replace your vehicle should it be totaled in an accident, then lowering your coverage to the minimum may work out financially. If on the other hand, the loss of your vehicle would result in further financial hardship, it may be best to have coverage that would at least provide a down payment for a replacement vehicle. Other changes to your auto policy should happen when adding or removing a vehicle, driver or change of address.

• Life insurance- Update life insurance whenever life changing events occur. This would include: marriage, divorce, the birth of a child or major financial purchases (buying a house). You should also update your policy to reflect certain employment changes (certain jobs are higher risk due to potential hazards on the job), medical issues or once you begin retirement. The amount of life insurance you have will play a huge role in the security of your family and loved ones in the event of your death. Without adequate insurance your family may face financial hardships that could have been prevented had your insurance been updated to reflect the many changes that happen throughout the years.

Once you have reviewed your policies to ensure they are current and provide adequate coverage that reflect any changes in your life, you can then consider comparing rates with other providers to see if you can save money by moving your policies. The reason it is important to first review the policy is to have a accurate rate to compare. If your policy is not up to date or provide enough coverage, comparing your current rate with new companies will not provide an accurate comparison. Although reviewing, updating or changing policies may not be the most enjoyable task, it is well worth the time and effort required.

A large percentage of people who have OnStar on their vehicles don’t even know what their service provides them.  Here is a break down of what the OnStar services provide, to help you determine if it’s worth the fee once your free trial year ends (most GMAC vehicles give you one year of OnStar for free when you purchase a new vehicle).

Safe and Sound Plan: (approximately $19 per month or $199 paid a year in advance)

Emergency Response – special accident detectors located all around the car will notify OnStar operators if you are in a crash, even if your airbags do not deploy. They get a live connection into your vehicle to talk to you and will dispatch emergency vehicles to your exact location. Even if you are unable to call for help or talk when the operators use your OnStar system to talk with you, GPS will determine your location, and details about the crash are relayed to the OnStar operators screen, including where the impact of the accident took place, whether the airbags deployed or not, how fast the vehicle was going during impact, and if the car rolled over or not.

Emergency Services – there is a button in your car that allows you to connect with emergency operators. You can notify the operators if you see someone else in an accident or broke down, get assistance if you become lost, or if you need medical, police or fire assistance. And OnStar can notify authorities of lost children under AmberAlert.

Roadside Assistance – if you run out of gas, your tire goes flat, or your car stops running, you can use your blue OnStar button to talk to an advisor. The GPS will help locate you even if you don’t know where you are exactly. A nearby service provider can be contacted and dispatched to help you.

Crisis Assist – before, during and after a crisis event (severe weather, natural disasters, etc) – the onstar operators can help you find evacuation routes to get out of harms way, or provide you with the nearest fueling station if you’re running out of gas.  If you are in need of food, water, medical assistance or a hospital, OnStar can direct you to the nearest source, as well as help you find accommodations or shelter if needed.

Stolen Vehicle Slowdown – if your car is stolen, you can use any phone to dial into OnStar’s stolen vehicle assistance toll free line.  Onstar’s GPS locating system will find your vehicles exact location and provide the information to local authorities. The police will get  the vehicle in their line of sight and then request that OnStar slow the vehicle down. OnStar can then use a remote signal that will slow the vehicle down gradually, making it impossible for the thief to get away.

Remote Door Unlock and Remote Horn & Lights – If you lock your keys in your vehicle, you can call OnStar toll free from any telephone, verify who you are, and then OnStar can unlock the car remotely. You won’t need to call a locksmith to help you out or pay any fees for the service. If you forget where you park, you can call the toll free customer service number at Onstar and after identifying yourself, the advisor can flash your exterior lights and make your horn go off, helping you locate your vehicle.

If you would like to receive turn-by-turn navigation services, you can upgrade to the directions and connections plan, which includes everything under the Safe and Sound plan, and adds the ability to push your blue OnStar button and ask for directions. The directions to your destination are sent to your vehicle; and the vehicle will tell you when to turn and which exits to take until you reach your destination. This plan is approximately $29 a month.

If you are a subscriber to either OnStar plan, you are also able to participate in the Onstar Vehicle Diagnostics Report at no additional charge. Each month, OnStar will perform a remote diagnostic and maintenance check on the vehicle’s key operating systems and email you a report of the findings. If your oil is low, you’ll know. If your tire’s air pressure is incorrect, you’ll know. You can check your key systems while driving – if your check engine light comes on, just push the blue button and a real-time diagnostic check is performed and an advisor will let you know if you need to get service right away or if it can wait until you reach your destination.

Most cars with Onstar also feature hands-free calling, which lets you call through your OnStar system, voice activated, so you don’t need to take your eyes off the road. You do need to purchase minutes for the car phone, or enroll in Verizon’s nationwide plan to share the minutes between your Verizon cell phone and your car.

Is Onstar worth the monthly expense?

I suppose it depends on a number of factors, but for me, $19 a month is a small price to pay for the additional safety features the service provides my car (or $199 per year, paid in advance). I have two small children who are almost always in the vehicle with me, and I like knowing if we’re in an accident and I’m unable to call for help – they’re going to send help for me right away.

Another option for OnStar subscribers is the possibility of getting lower insurance rates. If you drive less than 15,000 miles per year, you could qualify for mileage discounts with GMAC insurance – since they can use your OnStar to track the miles driven. The insurance provider indicates that many people who switch to GMAC insurance with their OnStar service save an average of 25% on the cost of their insurance with the low mileage discount.  Additional discounts apply for individuals who finance their vehicles through GMAC or have other GM products.

When homeowners with sub-prime mortgages started missing mortgage payments and went in default en masse during the second half of 2007 and almost all of 2008, banks and finance companies quickly tightened their lending standards for all types of loans so that only those with a good credit history and proof of an actual income could borrow money. For a while, it seemed that lenders had learned their lesson by lending money to people that couldn’t afford to repay the loans that they were taking out.

Apparently at least one bank has already forgotten that it’s not a good idea to lend money to people who have a history of not paying their bills. GMAC, General Motor’s financing arm, made a move to ease the requirements that consumers would have to meet so that consumers would be able to get loans to purchase new vehicles when they would have previously been denied because of having credit scores that were considered “sub-prime.” GMAC will also be reducing finance charges on loans of hoping to draw in more consumers.

Under GMAC’s new standards, consumers with credit scores as low as 620 will be considered. In October of 2008, GMAC increased their credit score requirement to 700, making it so that 40% of people that wanted to borrow money were not longer able to. On December 30^th, GMAC lowered that number down to 600.

Where did the money come from to make-allowance for the expected increased default rate and lower-financing charges? You and Me. GMAC received $5 billion from the federal government under the Troubled Assert Relief Plan (TARP) funds that were originally intended to purchase “toxic” mortgage backed securities from banks. However, then Treasury Secretary, Henry Paulson elected to use the funds in just about every way but buying mortgage-backed securities.

With the CEO of General Motors being ousted by the federal government and a decline of 45% in auto sales during the month of March, General Motors is in serious trouble. Chrysler was down 39%; Toyota was down 39%; and Honda was down 36%. The auto market overall was down an average of 37%. General Motors is hoping that they will be able to increase their sales by allowing just about everyone to get a loan on a new vehicle. This move will probably actually work in the short term, however it will only hurt GMAC down the line as consumers that can’t afford to buy a new car end up getting behind on their loans.

If you have a credit score in the sub-prime range and were previously not able to get a new vehicle because of financing, this doesn’t mean that you should rush out and go finance a new car now that GMAC will let you. If your credit score is in the low-to-mid 600’s that means you’ve demonstrated that you historically have not paid your debts back as you’ve agreed to. Instead, you should focus on getting your financial life in order before financing $30,000 on a new car with General Motors Auto Credit.