Research Price

• Before you agree to a vehicle's price, check values to determine whether you are getting a fair price. For new cars, you can find vehicle cost with options or current rebates, special interest rate financing or lease specials online at the manufacturer's website. For used cars, Edmunds.com or the Kelley Blue Book website offer detailed vehicle information, pricing guides and available options for specific vehicles. Once you know your values, you can ensure you're not paying too much to a dealer or private seller or keep shopping until you find adequate pricing.
  
  

Obtain a Preapproval

• A loan preapproval also ensures you won't pay too much for your vehicle over the term of its loan. Dealerships who can obtain customer financing often mark up interest rates to make a profit. If you have a preapproved rate, allow the dealer to try to beat it with one of its lenders. Either way, you have an approval. If shopping from private sellers, you can complete the loan process quickly, as loan approvals can take up to a week.
  
  

Budget All Costs

• Consider your vehicle ownership costs. Most states charge tax and additional fees for a vehicle purchase, so you'll have to decide whether to add the charges to your finance or how much to add to your vehicle price. For every $1,000 you finance, expect to pay about $20 per month. This can prove a significant payment increase depending on your area's tax rate. If you planned to pay cash for your car, you might have to come up with thousands more than you originally intended. Ask a dealer or your state motor vehicle office for fee and tax costs so you can budget appropriately.
  
  

Read Your Paperwork

• Whether you purchase from a dealer, private seller or have loan paperwork to sign, read all of your paperwork thoroughly. Ensure that a private seller offers you a title without a lien holder listed, which means a loan still exists on the car. Dealers may add extra fees into your vehicle cost or payment, such as an extended warranty you didn't agree to. Make sure your total purchase price matches the one from your research. Your loan paperwork should reflect the proper term, monthly payment and interest rate you discussed before you agreed to purchase.