by Kandice Day

Created on: December 20, 2008   Last Updated: January 06, 2009

Never walk into a car dealership unprepared. This is rule number ONE (I'm yelling because it's simply that important). Walking into a dealership without researching exactly what you're interested in purchasing is like walking into a gun battle without bullets. You will get shot, and it will definitely cost you an arm and a leg. By simply following these steps, you will save yourself hundreds.

Step 1: You will need access to the internet. With its endless roads of research, this will be your best friend in the search for a new or used car. I remember when I bought my first car. I was 17, and it was a used Geo Metro. Back in those days, we had to go to the local library to find the car's value in Kelly Blue Book. It was your one-stop-shop, and that's what we based our purchase price on. Whatever Kelly said, we believed. Things have definitely changed.

Step 2: Find out what you can afford. Whether you are trading in your old jalopy, or working strictly from your bank account, it is pertinent that you know your FICO score. Fortunately, you are allowed one free credit check a year that is not reflected poorly on your score. By going to the annual credit report site, you will instantly learn your financing options. At this point, feel free to call your personal banker, or visit your banks website, to find out the financing they would offer you. For the most part, sites such as Wells Fargo will have an icon for auto loans on the front page. It is always a good idea to have a point of reference when negotiating.

Step 3: Weigh your priorities. Whether you're buying a pre-owned car, SUV, new motorcycle, or RV, it's important to know exactly what you want. This is not an area for flexibility. Buying a car is like buying a home, you need to be specific and settle for nothing less than what you want (or can afford). Fortunately, Edmunds is a great site that allows you to literally build your dream car. (For purchases of RV's, head to Go RVing where you will find dealers and consumer reviews.)

You need to decide on the body style of your car; sedan, truck, SUV, convertible, wagon, hybrid, minivan, or coupe. Edmunds offers detailed descriptions of each style. Then, by simply selecting a body style, the next page will ask you to choose your price range. Since you have already secured your budget, select the range that fits your needs.Finally, this is where you get specific. Do you want four-wheel drive, Bluetooth capabilities, or leather seats?

After you've completed the building

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