(This guide was originally published by the Caltech Technique in the year 2000.)

Buying a car

So, you want to buy a car. How do you go about it to find the one you want and not pay more than you need to? Cars (excepting those imported from Europe) are a lot cheaper in the U.S. than they are in some other regions of the world, so you may be able to afford a better one than you think. The first decision is whether to buy a new or a used one. New cars, at writing, started at around $12,000. You can get a used car anywhere from a few hundred bucks upwards. The web has given you a tremendous advantage trying to buy either, so I'll start by listing a few online resources:

For both used and new:

www.edmunds.com

www.cars.com

www.automotive.com

For used cars:

www.recycler.com

www.dealernet.com

www.imotors.com

www.motortrend.com

For new cars:

www.carsdirect.com

www.automobilemag.com

First of all, not all times of the year are born equal in terms of getting a new car deal. Getting a new car is especially good around September, when the models of the following calendar year start rolling in and dealers are anxious to get rid of older models. And getting a used car can be especially easy at university campuses around graduation time.

Start by consulting edmunds.com to look at reviews and narrow down the models you are interested in. For used cars, the Recycler publishes a weekly print magazine with photos of all vehicles offered which is a great place to start to look for something you like the looks of and can afford. Do *not* buy a used car without having a mechanic you trust perform a thorough inspection of the car *before* you buy it. Do *not* buy a car from somebody who refuses to allow you to have it inspected before agreeing to buy it.

Another way to buy a used car for cheap is by attending a repossessed car auction. These public auto auctions take place both online and offline, and winning bids for vehicles in pretty good conditions can be as low 10%-20% of the car's market value. These is due to the fact that banks are eager to get rid of these repossessed cars as quickly as possible, before they stop being an asset and become a liability. You can find repossessed auctions in your area by just looking at your local newspaper, or you can search online. A third way would be to simply contact the bank, tell them about the vehicle you're interested in and set a meeting. Here are a couple of resources with more information and tips on this matter:

- General information on bank repossessed cars for sale

- Tips for bidding on repossessed cars for sale.

If you're interested in a new car, use the web to narrow down your choices to a few, then drive by your local dealers to check the cars out in person, test-driving the ones you like most. Do not engage in any negotiations until you know that you're ready to drive a car home if you get it at the right price, it'll just be a waste of time for both parties. When you're ready for that, do your research on edmunds.com to find out what the invoice price (essentially the marginal price the dealer paid for your car) for the car you want is, and whether there are any dealer incentives or rebates currently offered for it. Then go to the dealer and tell him that you know what the invoice price is, and that you're willing to pay $X above it. A reasonable low X is about $400 for a $20k car that is not in unusually high demand--where reasonable is defined by carsdirect.com being willing to sell it to you for that. Then go up from there as much as the dealer manages to get you up to and as much as your pocket allows, or look for another dealer (or make a deal online). Be firm if you have made a reasonable offer. If the exact features or color you're looking for are not available and you don't have the time to wait (or there are no new cars coming in already), nice dealers will locate one for you using their computer database. In general, it is not a good idea to accept post-production extra items such as paint protection and special dealer warranties, since those are high-profit items for the dealer. Make sure you look at the bottom line price to ensure no unwanted costs have been added. Happy buying!

This guide has been perused times since we started counting on November 11, 2003.