Checklist For Buying Your Next Car

Here are some more tips before you buy used cars

" Ask competitive dealers about rebates and any and all incentives before you try to make a deal. Keep these rebates out of your negotiation process and deduct them from the bottom line at closing time.

" Don't buy a used car from anyone without having it thoroughly checked out by an independent mechanic first.

" Buy on price and not on payment. Dealers have a way of disguising the real cost of a car by manipulating the down payment, monthly payment and length of the loan in their favor. When you buy on payment, you can easily be ripped off.

" Write down all differences, promises and add-ons that the dealers place on the buyer's order, especially when you buy used cars.

" When you are trading in, get back the keys to your trade-in before you start your negotiations so that you can leave whenever you want to.

" The average yearly mileage that you should find on a used car is 15,000 miles. Most used cars die on you once you pass 100,000 miles.

" If a deposit is required on your car, do not offer to pay more than $100. Pay with cash, if you can, and get a receipt.

" Do not get caught in the trading allowance trap. You will want to negotiate purchase and trade on a separate basis.

" Preparation fees are meant to cover the cost of getting your car ready for delivery after it comes off the truck. Destination fees are different and cover the cost of delivering the car from manufacturing plant to the dealership. These fees are usually not negotiable so don't bother trying.

" You should always refuse to pay for add-on items like undercoating, fabric and paint protection, or items that are supposed to be included with all cars.

" Check out the cost of tag and title from a competitor because you could use the information as a negotiation point later.

" You must insist that the dealer match or better your bank finance rates if you are going to work with them. You can always use your own bank or credit union no matter what they say.

" Dealers are not licensed insurance agents. Don't buy credit life or disability insurance from a dealer. If you think you need it, talk to your own licensed insurance agent.

" You should always be wary of extra warranties. All new cars now have a 100 percent bumper-to-bumper warranty included in them form the manufacturer. You can buy a used car warranty after the original warranty runs out if you want to and if you still have the car. Most warranties have at least a 50 percent markup and all of them are negotiable.

" Leasing is not for everyone. Once you sign a lease agreement, you had better be ready to keep the car for the full lease period. Otherwise your buyout price is going to be surprisingly high. I would say avoid all leases because your income and lifestyle can always change in the future.

" Gap insurance does cover the money gap between a totaled car and a replacement car on leases. It is generally included in most leases. If a dealer offers you this option at an extra fee, do not take it.

" You want to get and maintain control when go out to buy used cars. Remember, it's your money being spent, and you can walk away any time you feel uncomfortable. Pressure from dealers doesn't change this.

This is just a step that you should take before you start buying a car if it is used or new from a dealership. It could certainly save you a lot of time and money later. If you follow the point by point system of buying above, it should be a great deal easier for you.

Of course, you could still wind up with a lemon later, and if this should happen to you, you will have to refer to the next section as we get started.