Don’t rush out and buy the first shiny car or truck you see. Slowing down and giving yourself time to research and make careful considerations may just save you a lot of time and agony down the road.

First, what do you want?

Are you looking for something sporty or a family car? If this is the car you’ll use to transport your handicapped grandmother to and from the doctor, won’t it need to be easy to get into and out of? Think of all the considerations you might have to make over the next four to five years.

Is energy efficiency a factor?

Check current guidelines from the Internal Revenue Service. Most years you can get a special tax credit for buying a hybrid car.

With an idea of what you want and need in a new car or truck, look at how much you can afford. Most new car dealerships will offer to find financing for you. While this is convenient, it may not result in the very best deal for you. Check with your own personal bank to see what their interest rates are for new car purchases. Your bank might even offer special rates for customers who have the new car payment established as an automatic withdrawal each month. Also, don’t forget to check with your local credit union, too. Credit unions often times offer rates more competitive than traditional banks.

The easiest way to determine how much car you can afford is to select a model and ask your banker. For instance, suppose you’ve narrowed your top two new car picks down to a Toyota Camry and a Malibu. Look both vehicles up online to get an idea of a suggested retail price. Ask your bank or credit union if you qualify for a loan for that amount. If so, move to the next step. If not, ask how much you do qualify for. Some auto loans can be stretched out for up to six years now. Decide how many months you are willing to finance.

Don’t forget to check with your insurance agent before buying a new car. Coverage requirements differ for used cars and new ones. Make sure you can afford the insurance payments on your new car before committing to buy it.

Once you know how much you can afford to pay, visit dealerships that sell your top choices. Tell the salesperson which cars you want to see and take them for a test drive. The test drive is important because it will give you an actual feel for the car. Be sure to take your drivers license and proof of insurance with you for the test drive. Many salespeople will never ask to see it, but they’ll assume you have it with you if you plan to drive.

Once you are happy with a vehicle, you’ll move to the price negotiation stage. While it’s fun to test drive lots of new cars, this part of the process seems to be the most difficult for many people. Ask about rebates or sales promotions the dealership might have. If you want to catch a good deal, watch for end of year clearances. New car dealers bring in models for the coming year each fall, so that’s a great time to buy from the year end clearance.

Ask the sales rep for the best price he/she can give you on the car. If you plan to finance through your bank or credit union, ask for the best cash price they can offer. Sometimes there is a significant difference between the two.

Chances are that your sales rep will leave you alone for a short period of time while he/she visits with the sales manager to arrive at a price. The rep may even bring the manager to meet you. Some dealers have been known to use a scare tactic to raise desire for their products. If a sales rep ever tells you that you cannot afford to buy one of their cars, one of two things is going on: (1) you really can’t afford to buy it, or (2) the rep is trying to make you want it more and maybe even get you to pay a little more. If you only shop for cars you have pre-qualified for at your bank, you’ll know that you’re being scammed. Some may ask you to write down a wish list of your perfect deal. Then, they’ll say “If I can do this for you today, will you buy the car today?” If that sounds like too much pressure, politely leave. Chances are that they’ll change their tune and ask you to stay without making the commitment.

Once you’ve hammered out an agreeable price, ask if there are any service packages that go along with a new car purchase. Many dealers offer free oil changes and tire rotations for the first year and may offer discounts after that. Your car won’t still be new then, but if you keep up the regular maintenance, it can run like a new car for a long time