One of the best ways to save money on any purchase is to be a well informed consumer. The more you know about the purchase you are about to make the less likely you will be to get taken advantage of. I would advise her to do her homework on the car she has her eye on. Find out as much information about the vehicle as she possibly can because if you go into the dealership blindfolded, you will way more than you wanted to.

As one of the writers stated, EVERYTHING is negotiable, including the price of a vehicle. While a dealer is not going to take a loss on a sale, you can certainly better your chances of paying the price that you feel comfortable with by knowing what you want to buy long before you step onto the dealership floor.

Also keep in mind that 0% financiering for five years is usually available for those with good credit and some offer $1500 cash back as an alternative. So I would advise her to do her research, know what price that she wants to pay and be patient in the process. Dealerships count on us being eager and they are looking to have make the biggest profit possible. However, being patient and sticking to what you want can help give you some leverage throughout the process.

You sound as if your asking how she could save money without buying a used car. For some reason many people forget that as far as cars go new or used price is negotiable. The best way to save money on a car is to negotiate and come informed.

Drive by and find cars you like and test drive to be sure you're interested. Then rather than being roped in by the seller, go home and do some research. This does two things, one it tells the dealer you're not rushing into this sale, you won't be railroaded, two it helps you know what you need to know to make an offer.

You want to look up things like the blue book on the car for it's mileage. What cars of the same make are selling for else where in your near by area (think 2-6 hours). Common repair issues with the car. Things of that nature. If you then decide to buy see a vehicle history report first and factor any past damage as well as the number of previous owners into your offer. Your first offer should be significantly below what you actually want to pay. Chances are the dealer will make you an offer in response to your offer which may even be close to what you really wanted to pay. If not, start presenting your reasoning for your offer amount and work from there.

I think if one can afford a new car to purchase one because you are never sure what you are getting in a used car. Having said that, if you feel fairly comfortable that a used car is in good working condition, after thoroughly researching the background of the car and it's former user, then go for the used car. When researching, find out what repairs have been made. Check to see when the brakes were replaced, the condition of the tires, the engine, battery, transmission, etc. Any payments made on a used car will be less than those on a new car. Let's say for the sake of argument that a new car will cost $20,000 and a used car is $10,000. The time it would take to pay off the new car down to what is owed on the used car will be several years. By that time, it might be time for another car. With the used car, perhaps it can be paid off before you need a new car and then you will actually own the car, not worrying about paying it off. That's how I would approach it. Everyone has different ideas, but this is my personal preference.

http://dailygameplan.typepad.com/photos/uncategorized/used_car_lot_3.jpg

First of all, I recommend used cars over new any day because you don’t lose almost 30-40% in depreciation as you do in the case of new cars. After that it’s all about haggling and getting the best deal for you. While selecting a car, do consider its long term costs in terms of on road maintenance and car insurance bills.