Choose car requirements and model: Now that you have two lists and a collection of car, try to organize each list in terms of requirements and model. For example, which aspects you need the most: Do you need a towing package with the car? Do you need a big car for your family? Do you want a fuel-efficient car?

Consider payment options: Obviously there are two ways of paying, either you pay in cash or you finance the car. If you finance the car, you will pay a down payment, then you pay a monthly payment until you finish the total price of the car. If you afford to pay in cash that is great, but many people choose the financing option. If you are going to finance, try to make the down payment as high as you can. Some people choose a financial plan at dealerships, but it is not recommended because you can find better finance options with a good interest rate at banks, Credit Unions or online by visiting websites such as E-loan and Lending Tree.

Consider insurance premiums and warranty: Insurance is a major factor in the overall price of the car. Bear in mind that if you buy a sport car or popular car, the insurance premiums will be higher than the conventional car. Warranty is something that will guarantee maintenance for your car if something wrong was ever happened. Whether you buy new or used car, make sure that it has the manufacturer warranty, so you do not have to pay extra money for the extended warranty.

Inspect and test drive the car: You must inspect and test drive the car before you buy it. If you are buying a used car, inspect the car by a trusted mechanic to disclose any potential problems the car may have. Furthermore, have a vehicle history report to detect any major problems the carmay have to check whether it has salvaged, stolen or has been involved in an accident. When you test drive the car, take enough time on it and focus on the driving experience and whether it will suit you in the future or not. If you do not feel good, leave it and try another car. Do not be impulsive instead, be calm and focused and do not let the dealer or the salesperson sway you to another choice. You did your homework, and you must stick to it to get the best deal.