5 ways to get the best deal on your next car 

Planning to put that tax refund toward a new or used car this year? Before you hit the dealerships, read on to find out important tips that could save you thousands.

1. Know what’s fair: Check the book value to find out what the model you have in mind is really worth. NADA.com, KBB.com, and Edmunds.com are all good places to start, and can give you a good idea of what range to expect, depending on the mileage and condition of the car. You can also look up your trade-in here so you know whether you’re getting a fair offer from the dealer.
   
   
2. Know what’s safe: While you’re at it, check the vehicle safety rating and history at www.nhtsa.dot.gov. You’ll find information that the dealer may not tell you about any recalls or safety issues that could mean expensive bills from the mechanic—or the hospital—down the road.
   
   
3. Know what’s happened: If you’re buying used, it’s important to know what that car has really been through. Has it been in any accidents? Has the odometer been changed? Was the leather upholstery added after it was pulled out of Cochiti Lake?
   
   Get the Vehicle Identification Number (VIN), usually found on the inside of the driver’s door frame or on the dashboard near the corner of the windshield. Once you have the VIN you can buy a detailed report at carfax.com.
   
   You do have to pay for the report, but compared to the cost of ending up with a lemon, it can be a good investment. If you’re planning to shop around, opt for the 5-report package rather than buying one at a time to get more for your money.

4. Know your credit history: You can get a free copy of your own credit report once a year from each of the 3 major reporting agencies through annualcreditreport.com.
   
   It won’t give you a score, but it will show you exactly what is helping and what is hurting your credit. Most importantly, it will show you if there is anything on your credit history that doesn’t belong there, whether by mistake or because someone has stolen your identity. It also gives you a chance to dispute the errors.
   
   Mistakes or fraud could be dragging down your score without your knowing it. And that could cost you hundreds over the life of your loan by sticking you with high interest rates.
   
   
5. Know your options: Don’t forget that the choice is yours when it comes to financing. Even if the dealer is offering a great rate, there is usually a catch—make sure you know what you’re trading for that rate. Often, taking the dealer rebate instead saves you more money overall.
   
   Shopping around for the loan first puts you in control when you start looking at cars. Check local banks and credit unions to see who is offering the best rate and terms. You may even be able to get pre-approval. Having pre-approval in hand helps you avoid dealer pressure, and you’ll also know exactly what you can afford to spend without breaking your budget.

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