Always, always, always pay in cash. Even if you don’t have it.

The way to do this is to get a loan (from a credit union, b/c they will give you the best rates and terms - but make sure it is a REAL credit union, not one of these new ones that has popped up) for exactly how much you are willing to buy a car for. Find a car that is near that range.

Then, you start calling dealerships. Tell them what you want. Tell them you are buying in cash. Tell them you are buying TODAY. If they don’t have the car you want, or they try to tell you you want a different car, or they tell you that the price is unnacceptable - LIE. Tell them that some dealership nearby has it, or that they offered you a better deal, whatever. If they are still evasive, hang up and move on.

Continue until you’ve got one or two options. Start faxing them your offers and try to talk them down. (Library’s often will have a fax machine for fairly low cost, sometimes free if you are only using it once or twice.) If they are a bit more progressive, try emailing. In the chicago area, most dealerships haven’t figured out the email revolution yet.

Once you know where you are going, take the cashier’s check from the credit union loan and cash it. Take only the amount that you plan on spending on the car. Bring no other money. When you get to the dealership, they will try to tell you that you have to pay bullshit fees - especially if you have breasts or seem to possibly be poor or non-white. Point out that you brought EXACTLY the amount they agreed to. Car salespeople work basically on commission. They do NOT want you to walk away. Use that - work it. If they do anything but agree to the original price - leave. Immediately. Do not pause or look back. They WILL stop you, and try to bargain by saying they could waive this or that. Leave AGAIN. 99% of the time, they will drop it after the second walk-out. They REALLY want the $.

Next most important, read what you sign. If you are a slow reader, or don’t feel comfortable with legalese, bring someone who does. Call them as soon as the salesperson agrees to your price. If they are there before hand, it would weaken your position. After the agreement however, it strengthens your side because the salesperson cannot agree to waive the fees and then slip them back in the contract. And they can’t argue against someone double-checking it without revealing what they have done.

In the end, you will have the car you want. You will have payed what you can afford. Your interest rate will likely be about the same, but the terms will be better (credit unions don’t generally charge interest if you pay off early, and are FAR more lenient about late payments.) which serves those of us who live paycheck to paycheck.

MAKE SURE YOU HAVE A RECEIPT WHEN YOU LEAVE. You will have to give that receipt to the credit union as the surety for the loan. Also, if you got a better deal than you anticipated, use the extra money to immediatelly pay down the loan.

This is how I have gotten a brand new car that MSRP was $22k for $14k, which meant the difference between me affording it and not. Also, when I was able to get into some bonus money, I was able to pay off the loan early, and save alot of interest, which meant it ended up costing me $11,898.72 instead of $22k interest. I have done the same thing for my parents (they saved about $13k on a brand new minivan) and for my cousin (who saved about $2500 on a used taurus.)

Now alot of these HUHO things are for people in absolute poverty, but sometimes when you live in an area where you need a car, being able to get a reliable car in good condition is worth the investment, if only you could get the investment down to where it’s feasible to do. In fact, because you can predict the car payment much better than sudden large repairs, it can add a certain financial stability to buy new or recently new ( less than 3 years) vs older.