Buying Your First New Car ... On a Budget

Bummed ... maybe even royally bummed ... that would about sum up how I felt last week. A single mom out doing grocery shopping, and my car broke down.

Okay, maybe it doesn't sound that bad. But let's put this into perspective: I just replaced the alternator. Before that, it was the power steering pump. Before that, immediately after buying the car, it was the radiator. So I may love that little Honda, but it's getting old and I've already put more money into it than I purchased it for.

Maybe - just maybe - it's time for me to stop being cheap and actually look at (gulp!) buying an honest-to-goodness new car with the warranty and all the shiny stuff that comes with it. My first time. Terrifying.

Hit the Search Engines

Even in the smallest of towns, most car dealerships have a website. It may not be a great website, but it will definitely give you an idea of what you're looking at.

Go to your favorite search engine and look up "Car Dealers in (Your Town)". If you're lucky, you'll get plenty more results than you'll ever need. If you're extremely lucky, those results will offer ways to contact the dealerships about financing.

There's a few benefits to this digital shopping. First off, there's no pressure. You're insulated from salesman hype by your computer screen - they can't talk you into buying a car you don't want or can't afford.

Secondly, by doing this initial search online, you can take a good look at what cars are in your price range without (again) some salesman hanging off your arm steering you in another direction.

Finally, you can take a few seconds to jot down the make and model of cars that roughly fit in your price range and do some serious research.

Research the Benefits

When I began my terrified search, all that I knew was that I wanted a small car with four doors. Not a lot to ask for, I thought ... until I came up with all the different types of cars that fit that category.

Even narrowing the results down to fit in my modest budget, it was overwhelming.

Here's where the search engines will come to the rescue again. Armed with your short list of cars that caught your eye, search for the specific car (make, model, and year) that you're looking at - one by one. You'll come up with a lot of dealership listings, but if you keep looking, you'll also find hundreds of reviews. These are wonderful!

By first looking at a few cars (the ones that caught my eye were the Chevy Aveo, the Toyota Yaris, and the Kia Rio), I came up with the list of standard "amenities" offered on each model. The Rio has amazing safety features which definitely piqued my mommy-interest, while the Aveo has a really stellar warranty. And yet, the Yaris is the only one I'd test-driven and I was absolutely in love with the way it handled.

So, I headed to the reviews and a whole new light was shed on things. The Rio is said to be too loud (it's not very insulated against road noise), and the Aveo - from customer reviews - is said to really need that stellar warranty. My great love of the way the Yaris handled was sadly crushed by the fact that it is the least safe of all three models.

In other words, really look at what benefits are important to you and start pitting your choices against each other. If you can get it narrowed down to two cars that you're really comfortable with and want to test-drive, you're in great shape.

Schedule a Test Drive

If you filled out any forms for financing information when you first began your search, you've probably been contacted by at least one of the Internet Division Leaders at the dealerships. It's time to cash in on that communication and ask them to schedule a test drive with you for the specific car you're looking at.

When you go in for the test drive, be very firm on which car you're going for. Let the salesman know that you've done your research, are happy with the way the car looks on paper, and now want to see it and drive it in person.

Finally, don't let them push you into making a decision that day. Trust me. Take your test drive, head to the next dealership with a car you're looking at, and repeat the process. Then, head home and let your thoughts about each vehicle digest.

Do Some Emailing

This is your last step before sealing a deal. You'll want to go ahead and get in contact with two of the dealers that have the cars you liked most. These should be the two cars that offered the most things you're looking for - in my case, it came down to the Yaris and the Rio ... simply because, while the Yaris suffers in the safety area, it makes up for it in reliability. I just want something reliable.

The dealers will now want information that they can use to process your financing request. Go ahead and give it to both of them - you're not committed to either until you sign the papers in person.

When you start getting information back on how much your down payment, monthly payment, and interest rate will be ... take advantage of the fact that you've got more than one dealer "courting" your purchase. Let the more expensive one know that you're also looking at such-and-such a car that will only cost you x amount. See what happens. You might be surprised - I know I was.

Sign the Papers

When it's all said and done and you're ready to drive off in your shiny new car, head to the dealership and sign the papers. If you let the salesman know in advance, they'll have everything ready for you. Come in with proof of insurance, and you'll be out the door with the keys to your new car in about an hour. Beautiful.

So what did I get? I'm headed to pick up the keys to my new Kia Rio next week.