If you are considering buying a car for the first time, you might not know where to begin. Making such a major purchase is most likely the first step in your financial life, so it is very important to take it seriously.

That’s the word from the experts at a national consumer education campaign called AWARE (Americans Well-informed on Automobile Retailing Economics).

To help first-time auto buyers navigate the financing system, it has put together this pop quiz:

• Do you have a budget? If you don’t already have one, create one. It will help you determine how much car you can afford. Don’t forget vehicle-related costs outside of a new car payment, particularly insurance costs. Premiums for many young drivers can be as much as the monthly car payment. Don’t forget to include maintenance, gas and taxes.

• Have you pulled your credit report? Your credit history may affect your finance rate, so it’s a good idea to get a copy of your free credit report before heading to the dealer. Go to www.annualcredit report.com for yours.

• Have you shopped around? Do some homework before you decide which car to buy and where to buy it. Call your bank or credit union. Talk to dealerships. Print out all quotes and keep them in a folder that you bring with you when you shop for the car. Whether you finance through your dealer or elsewhere, there are typically no penalties to refinance if you’re not satisfied.

• Do you know how finance rates are determined? Vehicle financers use a number of factors to determine the finance rate they will offer you, including your credit score, the price of the vehicle you would like to purchase, manufacturer incentives, the amount of your down payment, your debt repayment options and the length of the finance contract. The rate offered to you may be negotiable.

• Is there someone you could ask to be a co-signer if needed? If you are under the age of 18, are currently not employed, do not have a credit history or your credit history is not good, you may need a responsible person to co-sign the finance contract for you.

• Do you know the difference between leasing and financing? Know what an APR is? Credit insurance? Guaranteed Auto Protection? You need to educate yourself on these terms and understand the value and price of aftermarket products. If you don’t want something, don’t sign for it.

According to Eric Hoffman of AWARE, if you answered “no” to one or more questions, go back and hit the books before you buy a car or truck. Said Hoffman, “Consumers, especially those at the beginning of their financial lives, need to be vigilant about understanding the vehicle-financing process. If you make mistakes along the way, they can follow you for years.”

Are you looking for buying used car? But confused in lots of question than do not worry you can find number of online sites which offers you complete guide to buying and selling used cars. Where you can learn who to get a best deals, sell for the highest prices, watch for scams and tricks, calculate payments, get advice on insurance and warranties, find out about used-car leasing, get safety and reliability data, and learn how to select the best used cars to meet your needs.

Many people who need a new car are stretched for extra money. Some turn to expensive loans or some other way but there are easier ways that often get overlooked. Check online sites where you can find cheap used car for your convenient.

Today Internet is a vast marketplace for buying and selling automobiles. Which find out some of the best places to search for used cars online and to get prices are Cars Direct , Autobytel , Auto web , and Auto Trader.

Directly buying from automobile dealer can be risky as many Used-car dealers want to sell you the cars they have on their lot, not the car you actually want. They can make it appear on their showroom that they have thousands of used cars, including just the one you want, but, in fact, they only have a few. It’s plain old smoke and mirrors.

You will see that used car prices change from day to day its due to the change in the prices of new car that affect used car prices. Since the size of your used car payment depends on a combination of price, how much you can pay down, the length of the loan, and the annual interest rate, you need a special loan calculator to tell you what your monthly payments will be.

Anna Josephs is a freelance journalist having experience of many years writing articles and news releases on various topics such as pet health, automobile and social issues. She also has great interest in poetry and paintings, hence she likes to write on these subjects as well. Currently writing for this website