Dealer Games

Quite simply, knowledge is power and power is money. A lot of old-school dealer shenanigans just don't work in the bright sunshine of Internet research.

If you're coming into buying a car with bad credit, be advised you're going to pay more than somebody with great credit. Be advised, too, that dealers have the right to make a profit, so if your idea of a good deal is $2,000 under invoice and zero percent financing, get a grip.

Thing is, paying more is one thing -- paying a lot more is quite another. Depending on your credit score, you can expect to be charged 5 to 10 percent more than prime customers; it's the 25 percent loans that you want to avoid.

Follow three rules and you'll be okay.

First, do not think in terms of the monthly
payment. Any monthly payment can be made
to fit your budget if the loan
is stretched out far enough.

Second, get your financing lined up
first. You're doing that already, or
you wouldn't be here, so good for you.

Finally, going back to our first point,
settle on the price of the car -- not the
monthly payment. Once you're done with the
car salesman, you'll be sent to the F-and-I office
(Finance and Insurance) where there will be numerous
attempts to add to your total price. Be strong. The F & I
office is a real money-maker for most dealerships, and you
don't want to blow your budget on things you may not really need. Next