What to know about buying new, used vehicles

Here are some of the issues to consider when buying a new or used vehicle:

1. Once you know the model and options you want, check for the dealer's cost on a service such as ConsumerReports.org to use as a negotiating tool.

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For used cars, check retail prices on edmunds.com or Kelly Blue Book. Also, bring a trusted mechanic to inspect the used car before purchase and check the vehicle identification number at vehiclehistory.gov for any undisclosed problems.

2. Now that you have an idea of the desired price, call the dealer and negotiate, if possible, rather than wasting time haggling at the dealer. Of course, obtain the name of the salesperson, and confirm the exact price by email so there will be no arguments when you arrive there.

3. If you wish to finance/lease, first check with your bank or credit union for their terms to compare with the dealers's terms. If you do finance/lease at the dealer, never state that you want to finance/lease until you agree on the car's price. This price will then be the basis for the loan/lease principal amount versus the dealer's non-negotiated amount.

4. You arrive at the dealer and are given a contract to sign. Before signing, read and understand it and always ask a knowledgeable dealer employee to answer your questions. Do not sign a contract that is not completely filled out and/or has "conditional on" or "subject to" wording requiring final approval from another dealer employee.

5. If you are still paying off a loan on your trade-in, be aware that the loan balance may be more than the trade-in value, resulting in negative equity. It may be prudent to wait until the loan is paid off or loan balance is lower than the trade-in value before trading in the car. If you cannot wait, the dealer will add the negative equity to the purchase price.

You should remember above all to take control of your purchase and do not let the dealer's sales personnel talk you into anything. There will always be certain cars that the price is set and there is no negotiation, but you always have the right to refuse.