Here's Five Tips for Buying a Car

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March 6 (Bloomberg) -- Karl Brauer, senior analyst at Kelley Blue Book, provides some tips on buying a car. He speaks with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

In automobile.

Let's start off with some of the tips you recommend people follow . it has to do a lot with expectations, doesn't it?

You want to go into this process very aware and educated.

The first one, of course, is to understand your car needs.

You do not want to buy a car and find out later you should not have.

You want to look at what you need versus what you want and also what you can afford.

If you can do that, you are in a better position to make sure you get the right car.

Will come back to what you can afford in just a second, but what about number two?

Number two, you want to confirm the market price.

You can look up the msrp quite easily, but you can also look at the market value of any car very easily.

That means what people are actually paying for it.

Kelley blue book has a really good tool and it's easy to go on there to see what people in your area are paying for the exact car you are looking at.

You should always do that before you go to the dealership.

And you should arrange your own financing as well.

That way, you have an understanding of what you will be paying every month.

And then you have your loan rate and terms handled.

You can get financing from a dealer, but why not go in there and have your own arranged to see if the dealer kenexa match or beat them.

And if you can find the car at more than one dealership, then you have leverage.

And finally, you want to read the fine print.

People think you have decided on the price and the dealer has agreed and it's all done.

That is the start of the deal.

You have to get to the finance and insurance process.

You want to make sure you pay the right fees and licensing.

Look at the fine print.

Ask questions if you have to.

Be careful about what you are being charged on top of the car price.

In the process of making the purchase, should you back away from it for a day before you sign anything?

Sometimes things change.

You get one price and you go away and the next day, oh, there's another special.

Something else just came in.

You can almost never make a mistake by taking time and being patient, and maybe even waiting versus rushing through a car deal.

If you can take your time and wait another day, if you think there might be an incentive deal coming down the line, it's ok to wait.

All right, let's say, you cannot wait for your new economy car, i know you've got a list of three that you are recommending.

Tell us about number one, the mazda.

The new mazda is stylish, fun to drive, very good gas mileage, and a lot of value for the dollar.

This is a winner if you are looking for a good economy car.

What about a family automobile?

There are a lot of cars out there for families, big and small, vans, minivans, suvs.

A car that is widely appreciated by people who own it and it gets great reviews is the subaru forrester.

It is sedan sized and almost has a station wagon look to it, but it's got an elevated height and it comes with four-wheel drive a call most every subaru.

And everyone who drive these cars, myself included, really enjoys driving them.

It is a well put together package.

There is a big gap in what you can pay for something like this, almost a $10,000 difference.

These things can get expensive.

Which is kind of nice, if you think about it.

You can throttle your budget up and down as you need.

All right, throttle up to the luxury level.

What kind of car will we see karl brauer in?

The cadillac just came out recently and the coupe version was introduced at the detroit show.

It is a beautiful car and it drives very well.

It is a pretty serious competitor, and not just trying, but succeeding at offering a viable alternative to the em w3c read.

Cadillac has done -- the bmw three series.

Cadillac has done a great job.

It is really well sorted, top to bottom.

You mentioned the v6 there.

Tell people what kind of automobile you drove into get to your appearance today.

[laughs] i drove in a 1974 pontiac firebird trans am.

It is a one owner car with 18,000 miles on it.

I tend to be a little eclectic.

That is just me.

Karl brauer is the senior analyst at kelley blue book.

Coming up, frank sinatra

This text has been automatically generated. It may not be 100% accurate.

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