Buying or leasing a new car (or pre-owned, certified pre-owned), next to education and housing, ranks among the big ticketed items for which you'll have to shell out a lot of dough. Therefore, before embarking on that shopping adventure, it's worth doing one's homework; for time spent now researching and digging will pay handsome dividends in terms of money saved and headaches avoided in the long run. Proceed with caution.

Is the car an asset or a liability, an investment or an expense?

If it fattens (makes money) your wallet or purse, it's an asset or investment. If it flattens or thins (depletes fund) the purse strings, it's a liability or expense. If it feeds you, it's an asset. If you feed it, it's a liability.

This hub is meant to give you the nuts and bolts of the car shopping experience without the frills, bells and whistles*

To quote a Ford slogan, "Safety is job # 1".

Safety

Before you buy or lease a car, you must check its safety track record and crash test results. In the event of an accident, you and your family want to walk away alive, unscathed at best; with minimal or minor sustained injuries at worst. Is the vehicle equipped with ABS, traction control, anti-skid system, front-side airbags, curtain side airbags, etc.? Your purchase should be based on safety, reliability or dependability, track record, resale value and your budget.

Size matters. The law of physics (based on force, weight, vehicle size and distance) according to which in the event of an impact, collision or accident (micro, mini, or compact vs mid-size vs large-size vehicles), the smaller or smallest vehicle stands to sustain the brunt of the resulting damages- hence compromising the safety of its occupants- still reigns supreme. While fuel economy is important, safety even more so. Be discerning, judicious and wise in your choice of vehicle(s). Strike the right balance. For further information on that subject, see The Insurance Institute for Highway Safety's news release titled: New crash tests demonstrate the influence of vehicle size and weight on safety in crashes; results are relevant to fuel economy policies (Don't forget to watch the video.) at:

• www.iihs.org/news/rss/pr041409.html

To check out a vehicle's safety rating, go to The Insurance Institute for Highway Safety website:

• www.iihs.org

For Vehicle Safety Research, Recalls, Defects and Complaints, go to the National Highway Traffic Safety Administration's website:

• www.nthsa.gov

For government-issued recalls from six agencies (including the National Highway Traffic Safety Administration):

• www.recalls.gov
  

For a premier source of vehicle safety information:

• www.safercar.gov
  

For results of recently tested vehicles, visit the Consumer Reports site:

• www.consumerreports.org
  

Fuel Economy

We all have to do our share to reduce our carbon footprints. If we don't, sooner or later we won't a planet to live on or bequeath to our children. Besides, you should factor in the ownership cost in the long run. Hence the need to consider fuel efficiency at the outset.

Premium vs Regular fuel. Premium fuel (91+ octane) is recommended for some cars, Mid-grade (88+ octane) or Regular fuel (85+ octane) for others. If you are thrifty, you will factor in, among other things, fuel grade in your choice of vehicle(s). Bottom line: ownership of a premium-fuel consuming vehicle will cost more in the long run. To find out which fuel grade is recommended for a car, open and read inside the fuel tank or gas tank door. Better yet, read the owner's manual.

Is your vehicle a gas-guzzler or gas-sipper, fuel-efficient or not?

As a rule of thumb, the more cylinders, the less energy efficient. The less cylinders, the more fuel efficient. Energy efficiency is also determined by the type of fuel and technologies used (Gas vs Diesel, Hybrids vs Non-Hybrids, Compressed Air vs Pure Electric, etc.). Diesel vehicles tend to be more fuel efficient (more mpg [mile per gallon]) than their Gasoline counterparts. The following comparisons, for illustration's sake, convey the point:

• 2009 Volkswagen Jetta Diesel (Automatic, 4-cylinder, 2 L, Turbocharged) is more fuel-efficient (33 Combined, 29 City, 40 Hwy) than a 2009 Volkswagen Jetta Regular Gasoline (Automatic, 5-cylinder, 2.5 L) (24 Combined, 20 City, 29 Hwy).

• 2009 Mercedes-Benz E320 Bluetec Diesel (Automatic, 6-cylinder, 3 L) is more economical mpg-wise (26 Combined, 23 City, 32 Hwy) than a 2009 Mercedes Benz E350 Premium Gasoline Automatic, 6-cylinder, 3.5 L) (19 Combined, 17 City, 24 Hwy).
• 2009 Nissan Altima Hybrid Regular Gasoline (Automatic, 4-cylinder, 2.5 L) gives more mpg bang (34 Combined, 35 City, 33 Hwy) than a 2009 Nissan Altima Regular Gasoline (Automatic, 4-cylinder, 2.5 L) (26 Combined, 23 City, 31 Hwy).
• Vehicles with Manual Transmissions tend to be more efficient fuel-wise than Vehicles with Automatic Transmissions (see table below).
  

Do you know that most Diesel Vehicles can run or be modified to run on Biodiesel (vegetable or animal fat- derived fuel)? Check manufacturer's manuals and warranty. To convert Diesel Engine for Biodiesel or not to convert? That's the question. Read this eye-opener article - The Scam on Biodiesel Engine Conversion - at:

• www.associatedcontent.com
  

For more information on Biodiesel, The National Biodiesel Board site is a great resource:

• www.biodiesel.org
  

AWD or 4WD vs FWD or RWD

All Wheel Drive or 4 Wheel Drive Vehicles are slightly less fuel-efficient than Front Wheel Drive or Rear Wheel Drive Vehicles. For instance, a 2009 BMW 328i averages 22 Combined MPG vs a 2009 BMW 328i xDrive, 20 Combined MPG. That's a minor downside. The upside? AWD or 4WD, specially High Clearance ones, laugh at the snow (less snow shovelling), make fun of rough terrains.

A good website for Vehicle Features & Specifications Comparison is Edmunds.com:

• www.edmunds.com

A great free online car magazine for Auto enthusiasts is:

• www.insideline.com
  

What can you compare and contrast at Edmunds.com?

MSRP, Invoice, True Market Value, Local Dealer Price, Financing, True Cost To Own, Warranty, etc.

Another good website for new car, used car, car reviews, car values and Blue Book Prices is Kelly Blue Book:

• www.kbb.com
  

You get the fuel efficiency picture by now.

To drive the fuel efficiency point home further, let's compare side-by-side (www.fueleconomy.gov) the following 2009 vehicles: Toyota Rav4, Subaru Outback, Suzuki Grand Vitara and Ford Escape. Common thread: they are all 4-cylinder mini SUVs, with AWD or 4WD and Automatic Transmission. And the winner is:...well that's your homework. Remember the good students (teacher's pets) will be rewarded with more content- rich hubs. The bad students will be called into the Principal's Office. Take the survey, participate in the poll.

To find out how fuel-efficient is your vehicle, go to: www.fueleconomy.gov where you can find and compare vehicles side-by-side, explore a wealth of information on Diesel Vehicles, Hybrid Vehicles, Alternative Fuel Vehicles (Ethanol, Biodiesel, Natural gas, Hydrogen, Propane), New Energy Tax Credit for Diesels, etc.

Volkswagen, BMW, Mercedes Benz, Audi, Subaru, Honda, Ford, Jeep, General motors, Dodge, Nissan, Hyundai, Kia, are coming out with, or planning to launch new Diesel Vehicles.

To find cheap fuel in your neighborhood, go to:

• GasBuddy.com,

• gasprices.mapquest.com or

• fueleconomy.gov
  

In a not-too-distant future, our highways and byways will be filled with Electric-Powered Vehicles (China's Geely has its Panda EV; Toyota, its RAV-4 EV, etc.). Will an Energy Star rating (as opposed to fuel economy rating) be attributed to an Electric Vehicle to determine its energy efficiency; or a KWh-per-100-mile rating?

Is the vehicle you are purchasing a lemon, has it been flooded, involved in an accident or not?

The only way to find out is to get a Vehicle History Report from either CARFAX:

• www.carfax.com

or AutoCheck:

• www.autocheck.com

If you want to know whether a vehicle was severely damaged or totaled, don't want to get stuck with a lemon, the National Motor Vehicle Title Information System is a good place to start:

• www.nmvtis.gov
  

It would be wise to rely on your own Vehicle History Report, not the seller's. Bear in mind also that if the vehicle was in any way, shape, form or fashion compromised, and an incident/accident report was not duly and properly filed, the Vehicle History Report will not reflect it. Don't forget to compare the vehicle's VIN (Vehicle Identification Number) to the Title's VIN for any discrepancy.

If you are not mechanically inclined, it would make sense to retain the services of a professional Mechanic or Technician for inspection, test drive and expert advices.

To locate an ASE Certified Technician (Mechanic) or a Blue Seal Shop, go to the National Institute for Automotive Excellence website:

• www.asecert.org

Don't forget to check out a business track record before, not after, you do business at the Better Business Bureau' s website:

• www.bbb.org
  

Where to find the bargains

At this point, you're probably wondering where would I find a reliable, brand new, or relatively so (pre-owned, certified pre-owned), vehicle after I've done all my home work?

Dealership

The dealership is obviously a start. You can haggle back and forth over price, features,etc., take it out for a spin, observe the following gauges: oil, speedometer, fuel, tachometer, mileage, dashboard lighting, etc.). Don't forget to take advantage of dealer or manufacturer incentives and rebates programs. Caution: before you do business at a dealership, check out its track record at the Better Business Bureau, or your local United States Attorney's for any complaints:

• www.usdoj.gov

Most dealerships run a clean operation. They should not all be painted with a broad brush of dishonesty and crookery. However, in any and all professions, there are always a few bad apples. Dealerships are no exceptions. To learn about a few tricks of the trade, explore this site:

• www.insidercarsecrets.com

Mechanical soundness

Test drive the vehicle to gauge its mechanical soundness. Before you do, pop-up the hood, check:

• Oil level and fluidity. If the oil is pasty (oil mixed with antifreeze or water), it's a sign of trouble.
• Transmission fluid level before (to see if any fluid is present) and after the car warms up (to gauge the correct level). Smell for any burnt fluid (burnt transmission fluid is a sign of transmission trouble).
  
• Antifreeze level (DO NOT OPEN THE RADIATOR WHILE HOT, TO AVOID SCALDING. NEVER EVER OPEN A HOT RADIATOR, YOU WILL GET BURNED. WAIT UNTIL THE RADIATOR IS COOLED).
  
• Power steering fluid level.
• Windshield washer fluid level (through windshield fluid reservoir).
  

Check exterior of vehicle:

• Tire pressure (for leak).
• Windshield for cracks or scratches
• Doors, fenders, roof (leaky moonroof or sunroof)
• Put the vehicle on a lift to check undercarriage for rust and eventual or potential leaks (engine oil, radiator antifreeze, transmission fluid, etc.).
  

Check interior of vehicle:

• Air bags (front, side, etc.)
• Roll windows up and down.
• Windshield washer spray (On/Off).
  
• Turn On and Off: headlights (high beam/low beam), tail lights, turn signals, flashers, AC/Heat, windshield wipers, dashboard lights, radio (How To Play MP3s And iPods In Your Car), TV (How To Watch Free TV On Your PC), DVD player (if so equipped), etc.
• Seats: recline, slide or move forward and back.
• Blow horn.
  

During test drive, turn radio off to hear or listen for engine noise, clatters or knocks if any. Shift the transmission (full range) from park (P), drive (D), neutral (N) to reverse (R), etc. and vice versa, watch for ease with which transmission shifts from one speed to another. Also check:

• Wheel alignment and the following gauges:
• Speedometer,
• Odometer,
  
• Tachometer,
• Mileage,
  
• Oil,
• Temperature and
• Battery.
  

Check whether the engine is timing belt (good), timing chain (better), or timing gear (best)-driven, for a timing belt must be replaced every 60,000-100,000 miles or so, along with water pump (expenses incurred for parts and labor), depending on the manufacturer's recommendations.

Finally, no test drive is complete without the proverbial kick to the tire. Go ahead, with my permission (how presumptuous of me!), kick the tire! (You feel better now!)

To locate a Dealer, go to the National Automobile Dealers Association site:

• www.nadaguides.com
  

Auctions

Look up local newspapers, ask friends and family, peruse the Internet, check your local Police Department, Municipality, etc.

A number of excellent websites worth checking out are the following:

The National Auction List

• www.nationalauctionlist.com

The Official Site to Buy U.S. Properties

• www.govsales.gov

The GSA Fleet Vehicle Sales, U.S. General Services Administration

• www. autoauctions.gsa.gov

The United States Marshals Service

• www.usmarshals.gov
  

For sale of government surplus and confiscated items via the internet:

• www.govdeals.com
  

If you're in Los Angeles, don't forget to check out the Los Angeles Official Police Garages:

• www.opgla.com for Auctions and Liens Sales.

In New York, The Department of Citywide Administrative Services:

• www.http://nyc.gov/html/dcas/html/auctions/autoauctions.shtml or
  

The City of New York Police Department Property Clerk:

• http://www.nyc.gov/html/nypd/html/property_clerk/police_auctions.shtml

Before going to the auctions, make sure that the Book Value – or Real Life Value, True Market Value of the vehicle – is known, so you don't overbid in an emotional bidding frenzy.

Classifieds

When you are on the market for a car, it's a good idea to let friends and foes (just kidding!) know about it so they (friends) can be of assistance in any which way possible. Shop the classifieds also for private sellers, auctions or dealer advertising . Whether online:

• www.craigslist.org

or in the Papers:

• www.newspapers.com
  

To know whether you're getting a good deal or not, compare asking price to Book Value or True Market Value. Negotiate, haggle to get the best price and save money. Check out these websites for an idea as to how much sellers are asking for their cars:

• www.autotrader.com
• www.autotraderclassics.com
• www.cars.com
  

Insurance

An excellent driving record, coupled with Defensive Driving Course, is definitely a plus for low insurance rates. The secret to a good driving record is to obey the traffic laws.Failure to obey the traffic laws will result in the traffic laws disobeying you. To get multiple insurance quotes, go to either:

• www.insurance.com,
  
• www.insureme.com or
• www.esurance.com.

'Wanna save money on your insurance bill, possibly reduce points off your license, be a better motorist? Why not take a Defensive Driving Course? For further information, go to the National Safety Council site for Online Defensive Driving:

• www.nscddconline.com

or the National Safety Council site:

• www.nsc.org

Once the car is purchased or leased, it must be insured, registered and inspected. Chances are you already know where is located the nearest Department of Motor Vehicles (DMV) Office. But just in case you happen to be from another planet such as Mars, Neptune, or Pluto (Oops!, no longer a planet!), to help you locate the nearest DMV Office on planet Earth, here is a website with a complete list of DMV with vehicle registration, driver license, offices, forms, and publications:

• www.dmvlist.com

Maintenance

Oil. Change your oil every 3000 miles or so, or follow manufacturer's recommendations. Frequent oil changes, at regular intervals, is the single best thing you can do for your car. The car's engine will thank you for it and reward you with a lifetime trouble-free (almost) performance.

Curious as to what an oil change entails? "Wanna learn how to change your oil?

• www.quakerstate.com to the rescue, with some informative slides and audio.

Before you take your car to a repair shop/technician, you may want to know what's wrong with the check engine light, have an idea about repair cost/estimate. There are a number of car diagnostic tools suitable for both novices and professionals. To name just a few:

• Black & Decker - Smart Scan Car Diagnostic Tool,
• CarMD Vehicle Diagnostic Unit Software Package and Storage Pouch, and
  
• ElmScan 5 USB Scan Tool.

Tune-up. Have your car tuned-up on a regular basis. Change spark plugs, wires, filters, brake pads or shoes, transmission fluid, etc. according to the manufacturer's recommendations.

Electric car. The best thing you can do for your electric car is to keep the batteries charged at all times. Never drain a battery dry, for its life cycle will be shortened. For the latest 100+ mpg PLUG-IN HYBRID Hummer by Raser Technologies, browse:

• www.rasertech.com

For the latest Pure Electric Vehicles:

• www.teslamotors.com
  

For a Zero Emission No Noise, affordable Electric Vehicle:

• www.zenncars.com

If you own a Plug-In Hybrid (PIH) or an Electric Vehicle (EV), love to save money, and want to cut or shred your electric bill, you may want to investigate what LifePort Solar has to offer in terms of ability to home recharge your car from the garage rooftop.

• www.envisionsolar.com

Do you own a Hybrid and want to convert it into Plug-In Hybrid Electric Vehicle (PHEV)for an extended range of 100+ MPG?

The California Cars Initiative for Plug-In Hybrids has a wealth of information and resources as to how to proceed.

• www.calcars.org
  

Compressed Natural Gas Vehicle: a regular (gasoline- powered) vehicle retrofitted to run on Compressed Natural Gas (CNG) or Liquefied Natural Gas (LNG). There are also Dedicated Natural Gas Vehicles. Follow recommended maintenance instructions.

Compressed Air Vehicle? well, see for yourself at:

• www.zeropollutionmotors.us
  

If you are technically inclined, an inveterate doityourself, ALLDATA has the the latest Auto Repair Software, Car Manuals and Car Recalls for the Consumer:

• www.alldata.com,
  
• www.alldatadiy.com
  

Your car is an investment. In order to enjoy the derivative dividends for years to come, you must take care of it. To take great care of your vehicle, the Car Care Council fits the bill:

• www.carcare.org
  

If you want to further your education in the automotive field, you can do so right in the comfort of your home. Browse:

• www.pennfoster.edu

You can earn a Career Diploma as: Auto Repair Technician, Diesel Mechanics/Heavy Truck Maintenance; or a Certificate in Automotive HVAC, Automotive Transmissions.

• www.scitraining.com

You'll earn a Personalized Auto Mechanic Career Diploma.

Don't forget to take a look at the following site (Distance Education and Training Council) for a plethora of educational institutions to learn whatever your heart desires:

• www.detc.org

If your car breaks down in the middle of nowhere, and you don't have an onstar service or its equivalency, what are your options?

It would be prudent to have a charged cell phone, a GPS (Global Positioning System) unit (if the vehicle is not so equipped), a Road Map for back up, a charged Jump Starter and Power Source Unit ,and join, beforehand, the American Automobile Association in case you are stranded:

• www.aaa.com
  

Frst Aid

If you were fortunate enough to walk away unscathed from an accident, would you know what to do to administer first aid to the injured? Having a First Aid Kit on board and knowing how to use it could be a life-saver. Why not take a First Aid, CPR and Automated External Defibrillator (AED) Courses at your local Red Cross? To locate your local Red Cross, go to:

• www.redcross.org

Any safety-minded motorist would always carry the following onboard:

• First Aid Kit (for First Aid in the event of an accident),

• Fire Extinguisher (in the event of a fire),
• Set of Spare Car Keys on one's person (in purse, wallet or pocket, in case of lockout. Even Onstar or similar services cannot come to the rescue if your car battery and/or back up are dead, depleted. Sorry locksmith!)
  

• Safety Flares (for warning oncoming motorists of roadside emergency),
• Warning Triangle (to alert other motorists to steer clear of the area),
  
• Gallon of Water (for any purpose),

• Inflated Spare Tire (in the event of a blown or punctured tire),
• Lug Wrench Extension (to use as leverage for tough and stubborn rim nuts),
• Safety Cones (to be easily seen in case of emergency),
  

• Charged Cell Phone (in case you are stranded),

• Charged Jump Starter with Power Source Unit (Compressor to inflate tire, Inverter for AC devices, Lantern, Battery Cables for Jump Start),
• Flash Light (to fight, overcome and triumph over the evil forces of darkness!),
  

• Jump Start Cables or Booster Cables (in case your car needs a booster),
• Solar Charger (avoid energy-depleted or dead batteries due to prolonged or extended parking, use Solar Charger to trickle charge batteries),
  
• Towing Rope or Strap or Cable (in case towing service is needed),
• Jack and Jack Stands Set (for tire change or replacement, with jack and safety jack stands), and
  

• Wheel Chock Set (to keep the tires from rolling when vehicle is jacked up).
  

Buying vs Leasing

If you change your car as often as you change underwear (just kidding!), i.e. every other year or so, then you should consider leasing. Benefits: lower monthly payment, you pay only for usage of vehicle, at the end of the lease you can decide either to return or buy the car. The money saved each month can be invested in dividend or interest bearing instruments. For more information on leasing, read the Federal Reserve's " Vehicle Leasing: Quick Consumer Guide " at:

• www.federalreserve.gov
  

If you want to save a ton of money on a lease, the least expensive way to do so is to take over or assume an existing lease. You'll get all the benefits without the exorbitant upfront cost. for further information, read the fine prints and peruse the following sites:

• www.leasetrader.com,
• www.takemypayments.com and
• www.swapalease.com.
  

On the other end, If you change car as seldom as you turn in your wife or girlfriend, husband or boyfriend for a new or the latest model (LOL!), then, by all means, you should seriously explore buying. Benefits: even though your monthly payments will be higher, when the loan is paid off, you'll get to keep the car and enjoy it for as long it's mechanically sound and makes financial sense, payment free. You'll enjoy equity (what the car is worth after it's paid off).

Whether you opt for buying or leasing, it would be wise to consult your financial advisor before you pull the financial trigger.

Financing

The limited extent of my financial expertise precludes me from dispensing any financial advice. However, we can discuss auto financing strategies. If you feel inclined to use those techniques, please do so with the assent, consent of, and in consultation with your financial advisor.

If you are a member of a Credit Union, it would be advantageous to explore their auto financing programs for competitive rates and other services. For more information on Credit Union, check out:

• www.creditunion.coop
• www.credituniononline.com
• www.cuna.org
  

Take advantage of dealer and manufacturer incentives.

Like multiple insurance quotes, you can also get multiple loan quotes. But before you do business with any financial company, make sure you check its track record. Read the fine prints. Just a few finance company websites worth checking out:

• www.myautoloan.com
• www.autoloanlocator.com
  

To Compare Local Auto Loan Rates, go to:

• www.bankrate.com
  

If you use a Home Equity Lines of credit or a traditional second mortgage loan to purchase a car, the interest may be tax-deductible. Consult your tax advisor. Don't forget to check out the Federal Reserve's " What you should know about Home Equity Lines of Credit " at:

• www.federalreserve.gov

Self-financing should be considered. If you have money in the bank, you can borrow against it at 2-4% over the rate your account is earning. It's a Passbook loan. (Please do not deplete your rainy day fund.) For further information, read the following article (Passbook loans: Paying to borrow your own money) at:

• www.bankrate.com

To educate yourself about the basics of Auto Financing, read some informative articles at:

• www.autofinancing101.org

Warranty

Most automakers nowadays offer generous warranties to sweeten the deal. Warranties range from Basic to Roadsise assistance, without forgetting Drivetrain and Rust/Corrosion. Most warranties are based on a combination years/mileage (e.g. 3 years/100,000 miles or unlimited), whichever comes first. In my opinion, one should not make a buy/lease decision solely based on warranty. Safety, track record, crash test results and resale value should also be taken into consideration.

Auto Shows

If you are that passionate about cars, you cannot afford to miss an Auto Show. To locate the latest Auto Show near you, go to:

• www.autoshows.com

or google:

• www.autoshow.com
  

To the extent possible, just about every angle of the car buying and/or leasing process has been explored and covered; the implications herein and thereafter. If any stones are left unturned, please feel free to fill in the blanks by doing your own due diligence. If you are "ever taken for a ride again" (pun intended) while buying or leasing a vehicle, you will have no one to blame but... you guess it: The Martians!...Good luck and happy bargain hunting. Enjoy!

*While every effort has been made to convey accurate information to the extent possible, author assumes no responsibility or liability for errors or changes that occurs prior or subsequent to publication. Do your own due diligence.

Participate in polls, watch video, see illustrative photos and useful links below.

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Leave a comment and join now below.

P.S. Words of wisdom: A bad or reckless driver will always let you know so (literally,as well as figuratively). Consequently, pay close attention! At all times.

Readworthy

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