You’ve been dreaming about it for years and you finally have the funds to make it come true—buying your first brand new car. But it’s going to take a couple steps of financial planning before you retire your old clunker from college and sit in the driver’s seat of your perfect car. Use this easy guide to the car-buying process so you know how to prepare, what to expect, and best of all, know how to get a fair deal on the car of your dreams.

First stop, the Internet: The more information you can gather before you get to the dealer, the more informed you’ll be when you purchase your fancy new car. Focus on educating yourself in three areas: how much you can afford, what vehicle you want with which options, and what a fair price range would be.

How much you can afford will depend on what car and what kind of loan you can get. Since you can’t estimate what kind of APR a lender will offer based on your credit score, you can at least check out car loan APR trends to help you discern what a reasonable rate would be. Also, calculate the monthly loan payments that is within your budget so you know what you are comfortable paying month-to-month.

Research online what kind of car options are available to you so you know what to look for when you get to the dealer and can expect how much it will cost. Go to TrueCar and select the make and model of your car and check off the options you want, down to the color and tinted windows. TrueCar will provide local data on the average price consumers are actually paying for your exact car, so you know the reasonable and accurate price to negotiate with once you get into the gauntlet with the dealer.

Second stop, the car dealership: You’ve got all the information you need, and now it’s time to go to the dealership and drive off with your car. The typical car-buying process goes like this: you’ll take the car you want on a test drive to be sure it’s what you want, put your TrueCar price report to work haggling with the salesman over what you think is a fair deal, the dealer will run your credit report and use your credit score to determine what financing options are available to you, you’ll haggle more over pricing, and then the final blow—you either sign the paperwork and drive away, or you walk away. Be warned, the dealer will still try and sell you warranty packages and car accessories right up until you drive off the lot.

Third stop, the comfort of your driveway: Congratulations! Not only have you navigated the chaotic process of buying a new car, but you made it home safely in your dream car. Now it’s all about maintenance and proper upkeep. Don’t forget to get car insurance on your vehicle right away, change the oil every 3000 miles, get a car wash every now and then, and pay your loan payments on-time, and you’ll avoid any speed bumps along the ever-winding road of car-owning freedom.

If you’re in the market for a new car, TrueCar will help you drive off the lot knowing just what kind of deal you got. TrueCar aims to make the car purchasing process honest, transparent, and fair by providing consumers recent, local data of new car sales specific to the make, model, trim, and option of any vehicle. Before, haggling for hours over the price of a new car was a rite of passage every consumer had to go through. Now, by knowing the average price other consumers paid for a specific car, you can arm yourself with the tools you need to get a better deal on any new car purchase simply by being an informed, empowered consumer.

TrueCar makes understanding the negotiation process between car dealer and customer super simple. They develop a Price Report for the particular vehicle you want by aggregating data from many different sources of how much car buyers in your particular geographic area actually paid for the exact car with the same options you are looking for at the dealerships. The Price Report is a simple straight-forward graphic with data that helps new car shoppers quickly ballpark a good price, a great price, and the average price paid for a specific car. It also details the mark-up on all option packages as well as the actual dealer cost, factory invoice, and the sticker price many car salesmen try to hold buyers too. TrueCar also shows you the average price paid over the last six months for the vehicle. This is especially nice, since incentives and government programs like Cash for Clunkers can shift negotiation power quickly.

How do you use this data to negotiate a better price? Print out the Price Report and take it with you when you go shopping for that perfect car. While the car salesperson may pace back and forth to their manager to settle the price, you can remain steady in your offer price as you have a TrueCar Price Report in hand. Now, if you find yourself at the dealer wanting a different color, or a couple more add-ons, don’t worry; you can call TrueCar and they will email you an updated Price Report to your iPhone or Blackberry.

One thing TrueCar can’t help you with though—new car financing. Make sure you have a strong credit score in hand when you head to the dealership. Also, do your research and know what financing offers are available to you from the dealers as well as APRs you can get from going direct to Capital One Auto Finance or Up2Drive. In addition to financing, check with your auto insurance company regarding insurance coverage costs for that car you’ve been eyeing. You need to be able to afford much more than just the new car.

New car shopping has always been one of those events you never walk away feeling good about: you are suddenly worried you gave in too much or left wondering if you really did get a good deal like the salesperson kept telling you. TrueCar helps set a fair and transparent price for new cars in the market everyday so you can get your new set of keys worry-free.

General Motors just launched their 60-day Satisfaction Guarantee that offers a full purchase-price refund to eligible buyers of new GM vehicles until November 30, 2009. As part of GM’s larger “May the Best Car Win” campaign to stand out against the competition, the 60-day Satisfaction Guarantee is GM’s big push to gain back consumer confidence in the company name. GM is betting on their new car line-up and are willing to put cars being returned at risk to move cars off the lots, hopefully for good.

According to ConsumerReports.org, buyers are less likely to consider buying a GM car now than a year ago because of the company’s current economic standing and unappealing product offerings. The 60-day Guarantee aims to improve GM’s image problem while also moving inventory off the lots. GM reportedly expects less than 3% of vehicles to be returned under the Guarantee

If you do decide to buy, returning your vehicle may not be easy as there is lots of fine print. Here’s a quick list straight from GM:

• The Eligible Vehicle must be a new 2009 or 2010 model.
• You have purchased an Eligible Vehicle and taken Delivery between September 14, 2009 and November 30, 2009.
• You must be able to deliver to the Participating Dealership a clean and unencumbered title to the Eligible Vehicle, which title has remained in your name since the Delivery Date of the Eligible Vehicle.
• You must be an individual natural person who is the title owner of the Eligible Vehicle. Businesses, corporations and partnerships do not qualify.
• Your Eligible Vehicle’s odometer must not have more than 4,000 miles since the Delivery Date.
• Your Eligible Vehicle must have been registered and insured in the Buyer’s name since the Delivery Date.
• Your Eligible Vehicle must have no more than $200 of damage as determined by GM or GM’s agent. Such damage may include, without limitation, internal or external scratches, scrapes, dents, odors, rips, burns, etc.
• Your Eligible Vehicle may not be leased.
• Your Eligible Vehicle must have been returned to a Participating Dealership where you purchased it, in the same working order as it was on the Delivery Date.
• Your Eligible Vehicle must not have incurred damage or non-warranted repairs in excess of $200, regardless of whether such damage has been repaired.
• Your Eligible Vehicle must not have been subject to any liens or other security interests other than a lien for the original financing used to purchase the Eligible Vehicle.
• A minimum of thirty (30) days must have passed since the Delivery Date of Your Eligible Vehicle.
• Only one Eligible Vehicle may be returned per household.
• Your Eligible Vehicle must pass a purchase inspection conducted by GM or GM’s agent.

While this might be a good incentive to basically test-drive anything from a pick-up truck to a Corvette for a month, don’t get too carried away with all the excitement. Make sure the Satisfaction Guarantee isn’t the main reason you choose GM, and that you still negotiate for a fair price. Make sure it is the car that is right for you, and not just right for you right now.

Picking the right car insurance company is all about savings—how much time, money, and customer service benefits you can get from switching auto insurance providers helps you to figure out which company is a cut above the rest.

The highly commoditized world of auto insurance demands that companies use anything, from clever marketing of talking mascots to discounts for good driving and even good grades, just to gain a competitive edge. But the three big C’s – convenience to quote or buy, cost, and customer service—stand out as the factors consumers consider when determining which company is the best safety bumper when they are out on the open road.

It is difficult to pick a best out of the bunch because car insurance companies tend to sound the same when they boast the basic commercial gimmick of, “Save $325 dollars when you switch to a different auto insurer.” So, we challenged their claims by taking two very different profiles—a new car-owning college student, and a 30-something couple with two kids and two vehicles—and used consistent coverage across the auto insurers to see how they truly stack up in savings.

* of Savings per year (reported average annual savings of customers)
**Provided by J.D Power and Associates, Overall Purchase Experience score for new insurance buyers based on how customers rate their new auto insurance provider overall.

Round-up

There was very little difference across convenience, cost, and customer service in comparing the six auto insurers. In terms of convenience, all the company websites’ online quotes had quick, easy accessibility and a fast turn-around; each company took 5 to 10 minutes and a few of them also offered additional phone or insurance agent support. For cost, switching swung between saving as much as $465 or costing the consumer an additional $259. For customer service, GEICO has the highest J.D Powers rating, but this factor varied according to the unique claims service and customer care features each company offers.

Since competition between companies has standardized much of the coverage and minimized the range of cost, some companies get creative in how they set themselves apart from the others. For example, Esurance offers E-star Direct Repair Program, which speeds up the hassle of car accidents by recommending a body shop, providing online repair monitoring with pictures of your car’s repairs, and guarantees on all repairs for as long as you own your car. Allstate’s “Accident Forgiveness” policy, if you qualify, promises that your auto insurance premiums will not increase after a car accident, even if it is your fault. 21st Century is best known for its lower rates than other insurers and simple, user-friendly website, with a self-adjusting timer to pinpoint the current average time to complete a quote.

However, auto insurance cost is not just a function of your car type, coverage, and service level; it is also about how risky you may be as a driver. The underwriting process of insurance providers looks at your credit report and credit score to gauge the risk of insuring you and your vehicle. Typically, the lower the credit score, the higher perceived risk of a claim, and not surprisingly, the higher your car insurance may cost.

When it comes to choosing which auto insurance provider will make you feel at ease on the road while still being easy on your wallet, shop competitively and look at what each provider offers and what savings you can get by switching. Ultimately, no one insurance provider is comparatively better for all consumers—it all depends on what you want in a happily-ever-after for you, your family, and your car.

The Cash for Clunkers Program is waiting for a fill up as a Bill that passed Friday in the House, which would refuel the Program with an additional $2 billion, awaits approval in the Senate. The government program, originally slated to run through November, ran out of gas after just five days, rolling through its $1 billion allowance that provided credits to consumers for trading in their old gas guzzlers and driving off the lot with new, more fuel-efficient vehicles.

Cash for Clunkers is meant to be a rare Trifecta: good for consumers, good for the environment, and most importantly, good for the auto industry. If the Bill passes the Senate, the additional funding will provide approximately 500,000 additional gas guzzling vehicles to be towed off the roads.

The program works like this: you must trade in a “drivable” car that has been continuously insured for the past year and registered to you for at least a year. The car must be 25 years old, from model year 1984 or older, and have a combined fuel economy of 18 miles per gallon or less. If the car you purchase has an EPA-rated fuel economy of 10 mpg better than your trade-in, you are eligible for a $4500 credit towards your new car purchase. If the EPA-rated fuel economy is between 4 and 9 mpg better than your clunker, you are eligible for a $3500 credit towards your new car purchase. The trade-in deal for heavy duty vehicles has slightly different qualifications, but still offers a $3500-$4500 credit for eligible vehicles.

It’s important to understand that the money is not a rebate, but substitute value for your trade-in. The dealer will submit a voucher for your trade-in credit of $4500 or $3500 to the Program for reimbursement. If the new fuel efficient car you purchase is over the trade-in credit, which it will be, you are still eligible for any incentive the dealers offer and have access to the same financing options available to all consumers.

In addition to job history, total loan amount, car type, and past experience repaying an auto loan, your credit report and credit score are a key component auto lenders consider when determining whether or not to extend you credit for a car loan, and if so, the auto loan rate they will charge for your vehicle loan. In general, the higher your credit score the better the loan terms.

After everything is said and done, your old clunker will be hauled off to the junkyard to be stripped of any parts for resale and then torn down to scrap metal. The environment, the auto industry, and especially you, will be driving away with a sweet deal. Hopefully, the proposed refueling of this Program will jumpstart many dealerships and jobs across the US.

Only 42 % of United States consumers who purchased a new car or a new truck during the past 90 days chose one that was made by Detroit companies, which is a grand decrease from 47 % a year ago. This is a rapid decline that was more than likely aggravated not only by the suffering economy, but also by the lower income levels that United States customers are experiencing. The credit situation, according to a senior director of industry analysis at the Power Information Network, is impacting domestics more than it is affecting the Asian markets. Detroit automakers have three primary brands, Chevrolet, Dodge and Ford. All of these brands attract buyers that have a median household income that is $5,000 or more below the industry average, according to the Power Information Network.

In this environment of much tighter credit, customers who are making more money are in a much better situation to purchase vehicles using cash. The more recent data from the Power Information Network shows that cash purchases of vehicles have definitely been on the rise in recent months because financing and leasing are becoming the less prevalent options for many consumers.

When gas prices began to go up in the second quarter of 2006, Detroit’s primary automakers experienced a serious headwind, seeing their retail share of the United States market drop below the 50 percent mark. The weak lending environment because of the credit crunch is the second headwind for these automakers to content with. Now not only are consumers tending to buy against options like the large SUVs and pickup trucks that Detroit automakers are known for because of the gas price fluctuations, but also because these higher price tags require higher financing and therefore less purchasing options. The recent retail market share performance of the Detroit automakers is a sign that even automakers are facing serious challenges in this suffering economy of ours.

Some of the other intense challenges that are being faced by the local automakers include perceptions of subpar quality, a lack of fuel efficient subcompact and hybrid vehicles, too many different dealerships and brands, vehicle lineups that are not quite as fresh as with other competitors, and even higher labor costs in relation to what foreign automakers offer. These things are disappointing, and even shocking, but they are simply a continuation of the same themes that we have been seeing for some time now.

Detroit automakers lost a combined 5 % points off of their market share in the last quarter, in comparison to the same period a year ago, which is the fastest year over year decline in two years. During this same period, General Motors lost a percentage point, Ford Motor Co. lost two percentage points and Chrysler LLC lost two percentage points. Two percentage points of market share is equal to the full production for an assembly plant for an entire year.

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Because of the problems facing our economy, most consumers are finding it difficult to obtain the lending that they need for things like purchasing a new car. However, what consumers are failing to understand is that the auto makers and car dealerships are experiencing the exact same issues relating to the economy, and are just as desperate to unload their inventories as you are to obtain a new vehicle.

With the current state of the economy, many people are facing poor credit or borderline credit scores, making a new car loan seem like something completely unobtainable. On one hand, consumers are definitely hurting when it comes to obtaining lending, and lenders are starting to cut back on the loans they are offering because of the state of the economy. On the other hand, these car dealerships and other potential lenders are desperate to unload their products to boost their sales and profits, which means that car dealerships are going to have to offer loans and other special offers to consumers if they want to keep their profits from crashing. Here are some brief tips for buying a car despite the faltering economy:

Make sure that you have an adequate down payment.

This shows the dealership that you are serious about buying a car. Your income may not be great, and you may have not have much in savings, but the more you present as a down payment, the better off you will be when it comes to obtaining a loan for the vehicle you want to purchase.

Check with local banks for funding assistance.

Rather than attempting to deal with the nationwide large names check out your local banks. It is the large name banks that are dealing with the most financial issues, and obtaining lending from them will be near impossible. Smaller, local banks are not seeing nearly the same impact and will be more likely to lend to worthwhile consumers.

Shop around on the internet when looking for a car loan.

The internet has numerous opportunities beyond what you will find in person through local auto dealerships. Most internet lenders are much more likely to lend the money that you need to purchase your new car.

Shop around for the right financing before you start looking for a car rather than choosing a car first before seeking financing.

Take your time when shopping for adequate financing, instead of rushing at the very last moment when you have the car you want but not enough money to purchase it.

The bottom line is simple: Auto dealerships are feeling the economy crunch just as much as consumers are. For this reason, they are still likely to offer auto loans and sell vehicles, but only if you are willing to think outside the box a little bit. If you follow the aforementioned tips, you should have no trouble obtaining financing from companies that are not being affected in the same way by the mortgage crunch. Combine special deals from desperate auto dealerships with auto loans from smaller, local banking and lending agencies and you should have no difficult obtaining the lending that you need to purchase the vehicle that you require. Walking into a dealership with an already approved loan is an excellent way to gain leverage over the auto dealerships to get the vehicle that you want at a price that you can handle.

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Whether you are tying the knot, purchasing your first home or just beginning a new career, all of these milestones are worth thinking long and hard about because they can have important impacts on your overall financial picture. As you approach each of these important financial milestones, it is vital that you take the time to consider just what financial consequences will exist for each situation. You can continue to make educated financial decisions, but you may find that you need to adjust your spending habits in order to reach the new goals in your life. Here are six of the most important financial milestones and what they may mean for your financial picture:

1 - Tying the Knot -

One of the most exciting times in your life is getting married. It is thrilling to begin the necessary planning and preparation for the wedding, and afterward you will begin your financial life coupled with someone new. Money is one of the most difficult concepts within a marriage, so it is vital that you address financial planning at the very beginning of your marriage if you want to tackle all the hard stuff first. This will help you and your spouse work toward the same goals through open communication and strong financial planning, which will allow your marriage to be prosperous and successful.

2 - Buying a Home -

Buying your very first home is another big and exciting time in your life. This is a very large decision to make and a commitment that you cannot easily get out of once it’s made. You will need to be sure that you are absolutely ready to purchase a new home before you do it. Additionally, you are going to need to have a firm understanding of the terms of your mortgage if you want to handle it correctly. You should absolutely have extra money set aside for the purpose of dealing with emergency home repairs and other potential disasters.

3 - Changing Careers -

After having been in the workforce for a few years, it may be time for a new career. Look for promotions within the company that you already work for, or look elsewhere to find benefits that are better, or a salary that is more lucrative. This is a vital step in your life and a real financial milestone.

4 - Buying a Car -

You may also eventually reach a point in your life where buying a new car is important. Cars are necessary in most cities. Make sure that you are properly preparing yourself for such a purpose. Pay cash when possible, or shop around for the best possible loan that you can obtain.

5 - Getting Out of Debt -

If you have any debt, you need to start working to get out of it as soon as you have properly settled down in the working world. Use your money wisely, and you can begin to accumulate true wealth once you have eliminated debt from your life.

6 - Investing Your Money -

Now you should begin to invest your money as wisely as possible. You are going to be solely responsible with the costs associated with retirement, so you absolutely must begin to plan now. If you want to live comfortably, you have to start saving as soon as possible and for as long as possible.

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