Your 5-Step Game Plan For Buying A Car

published 30 April 2009

1. Your top price. Run the numbers with our monthly-car-payment calculator at kiplinger.com/tools to figure out how much you can spend. Never reveal to a dealer your top monthly payment.

2. Financing. Get preapproved by your bank or credit union and know what rate you qualify for so that you can compare it with the rate the dealer's finance office offers you.

3. Target price. Look up dealer retail prices on Edmunds.com for each model you'll test-drive. Be sure to factor in options, mileage and the condition of the vehicle.

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4. Competing deals. Arm yourself with printouts on similar vehicles from AutoTrader.com, Cars.com or the local classifieds. A competing offer is probably the best motivator for a seller to lower the price.

5. When to walk away. If something feels fishy or the price is too high, go to the next seller on your list. If you've done your homework, you'll know when the deal is right.

Anderson has been with Kiplinger since January 2004, when she joined the staff as a reporter. Since then, she's covered the gamut of personal finance issues—from mortgages and credit to spending wisely—and she heads up Kiplinger's annual automotive rankings. She holds a BA in journalism and mass communication from the University of North Carolina at Chapel Hill. She was the 2012 president of the Washington Automotive Press Association and serves on its board of directors. In 2014, she was selected for the North American Car and Truck Of the Year jury. The awards, presented at the Detroit Auto Show, have come to be regarded as the most prestigious of their kind in the U.S. because they involve no commercial tie-ins. The jury is composed of nationally recognized journalists from across the U.S. and Canada, who are selected on the basis of audience reach, experience, expertise, product knowledge, and reputation in the automotive community.