Are you ready to buy a new to you car?  It's so exciting when you're going to get a new vehicle.  The downside is you might get stars in your eyes and make some bad decisions.  This article will help you keep the excitement of the new toy but make sure you've got your eyes on the bottom line.

1. Figure out how much you really can afford

Before you start looking, you first need to know how much you can honestly afford.  Look at your current income and expenses.  If you have to finance the vehicle, how much can you afford per month.  Although this can be a trap as well if a dealer asks you how much you can afford per month because they might sell you a car you really couldn't normally afford with a very extended (i.e. 7 years) financial plan.    So besides the monthly income, also look into how much you truly want to pay for a car.  The cost of the car will also affect how much your insurance premium will be.  So don't forget to call your insurance company after you've come up with your short list of vehicles.  It might make you go back and review your list.  And finally, if you're buying new or through a dealership, there are additional costs that get passed along to you like license and documentation fees, prep charges, etc.

2. Figure out what your needs are (these are not negotiable)

This is the brass tacks.  Do you want a small car or a large SUV?  Hybrid or not?  4 doors or coupe?  Automatic or manual transmission?  You need to decide what you absolutely must have.  Everyone has different requirements.  For example, I may require that there are leather seats, you may require that there's a built in GPS.  In addition, think about how this car will be used over the next few years.  Are you going to keep the car for 5 years or perhaps you're going to drive it for 2 years and then give it to your teenager? Hopefully, you will have this car for many years, so know what you have to have, how you're going to be using this car, and how long you intend to keep it.

3. Identify your wants (these are negotiable) and Research Research Research

It helps to know that you want the car not to be white as a requirement, but here's where you get to have fun.  You want the car to be blue, you want the car to have chrome wheels, you want the car to have a sunroof.  These are the things that make it nice and fun.  So how do you know what options are available, go to websites like Edmunds or Kelly Blue Book and find out what color choices you have, what comes standard, and what are add on options.

There are a lot of other issues that you might want to review after you have identified the vehicles you want.  As I mentioned before, you should look into how much insurance would cost.  Secondly, find out how much it would cost to replace tires.  And do some research on vehicle maintenance costs.  For example, a Volvo is a nice solid car, but the cost to replace a part is huge because of the import fees.

If you're buying from a dealership, ask how much the closing costs will be.  Don't hesitate to ask for a discount on this.  Some of it is negotiable.

4. Have patience during the process.

The more non-negotiable requirements you have, the longer it will take to find possibilities.  You may wish to renegotiate with yourself, and that's fine.  It's important to make conscious decisions though, otherwise you may feel some buyers remorse.

It takes awhile to search on sites like Ebay, Yahoo and Craigslist and identify cars that are relatively local to you.  Then you need to set up time to test drive.   When we were buying a new car quite a few years ago, I had wanted a Jetta, and when we test drove, we realized that my husband's legs were too long to fit comfortably in the passenger side.  At the time, that was a dealbreaker.  So that's why it's important to have a list of potential cars and don't get your heart set on one before you test drive.

Plus, you may want a certain color, but find out that the company only made 100 cars with that color.  When I bought my Honda Pilot, I had my heart set upon blue.  It turns out that this particular shade of blue was leftover from Acura vehicles three years prior, and they made very few of the Pilots that color.  So the chances of me finding a new one in that color were next to nothing.

The patience is important during the reality checks that always happen during the buying process.  And if you are buying this car for yourself and you intend to keep it for a long time, stay patient.  You don't want to suffer buyers remorse three months after purchase wishing you'd just waited a little longer for that sunroof.

5. Treat the Seller with Respect

Yes, there are some rotten apples out there, but that doesn't mean you should treat them all like they might be.  The seller is motivated to make as much money as they can for the vehicle.  And your job is to get the most car for your dollar.  If you have all of your research, you can negotiate from a position of strength.  I would recommend printing out all of your research and bringing it with you.  That way, if the seller tells you that you're mistaken or wrong or crazy to ask that price, you have the backup.

And don't be afraid to walk away if the deal is going bad.  You shouldn't put up or accept rudeness.  And it's better to walk away then become rude yourself.

Know what you're willing to pay, and don't go above that.  This is why you have a list of the different cars you're interested in.  If one doesn't work out, there will always be another one.

Don't waste people's time.

Conclusion

Research into your finances, motivations, and non-negotiables will increase your confidence when buying a new to you car.  This solid base will also assist you with negotiating a deal that's best for you.  But don't try to stick it to the seller as they're humans too.  Usually, they're trying to sell a car because it's their job or because they want to buy a new to them car as well.  It never hurts anyone to treat people with respect.  However, if they don't treat you well, walk away and find someone else who will treat you properly.

One final tip for you. When buying new, and the dealer tries to add on an aftermarket option that you don't want, tell them to remove it or throw it in for free.  But make sure it's aftermarket and not factory installed.  Those can't be removed.