Smart Car Shopping.

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Author: Stav, Julie

Once you know the make and model you want to buy, find out if there are incentives or rebates being offered by the manufacturer. You can do this by going to one of the car buying guide websites, such as www.edmunds.com and clicking on the "incentives and rebates" link under the "new cars" tab.

An incentive is anything that gives you an added reason to buy a particular car. Often, it comes in the form of a cash rebate. For example, a car may be selling for $22,000, but if the manufacturer is offering a $3,000 rebate, your final price will be $19,000. Rebates can tilt the balance for a car purchase if you are sitting on the fence between two makes or models.

The next step is to find the base prices for your car. There are three numbers to consider:

* The Invoice Price. This is the price the dealer paid for the car from the manufacturer.

* The MSRP. This is the "sticker price" or "Manufacturer's Suggested Retail Price."

* The TMV. The True Market Value of a car is determined by the car buying guide company Edmunds. To calculate this figure, Edumunds uses the invoice and sticker price of a car and then adjusts these prices according to factors such as color, the region where it's being sold, and the options included. The final amount represents the average price actually paid for that make and model. This number gives you a very good idea of how much to offer the dealer. You can find your car's invoice, sticker and TMV prices at www.edmunds.com.

Keep this information in a folder and take it with you when you visit the dealership. When a car salesperson is aware that he/she is dealing with an informed consumer, it makes for a more effective process. Today, there are two doors into a dealership. One is the traditional walk-on gateway to the showroom where you will be met by one or more salespersons. The other is through the Internet. Before your visit to the dealer, find his electronic address and send him an e-mail with your car requirements. You will be reaching the Internet sales manager, a new position in most dealerships that will communicate with you via your computer. These agents are usually willing to sell more cars at a lower profit. It is worth your time to make your first contact this way.

Since you are planning to keep your car for an extended period, it might be beneficial for you to consider the factory extended guarantee, which will most likely be offered once you agree on a purchase price. Make sure you are not paying for something already being included by the manufacturer in the purchase price, that it is indeed extending the period of time you are protected and that is transferable to your daughter.

If you are not paying cash for your car, don't forget to shop for the loan and get pre-approval before you negotiate the best price. Never divulge to the dealer the monthly amount you are willing to pay for the car. Always negotiate the final cost of the vehicle, not the payments.

If you follow these guidelines, you will be in a much better negotiating position and it will put you in the driver's seat even before you drive that new car off the lot.

PHOTO (COLOR): Julie Stav

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By Julie Stav

JULIE STAV, financial author and speaker, is at JulieStav.com. Read her previous columns on HispanicOnline.com, in the business channel.