Normally a dedicated used car buyer, I just bought my first ever new car over the weekend. It&39;s a Honda Fit; affordable, great gas mileage and ideal for living in a crowded city. Here are few tips from my first hand experience:

• Start shopping online - Browse and compare cars online before narrowing your list down to a few makes and models. Don&39;t forget to consider similar used options that might be less expensive. Revise this "short list" down to one car by taking a few test drives.
• Get an insurance quote before you buy - Call your insurance company to see how much your rates might change with your new car and factor this cost into your decision making.
• Negotiate by email, phone and fax - This is key! Most auto dealers now have online departments that specialize in replying to customer emails. We were able to reduce our price significantly by negotiating with competing dealers in our area. And saved a lot of time and energy too.
• Apply for an online auto loan - Even if you don&39;t use it, getting an auto loan quote online will help you negotiate the best financing rates with a dealership.
• Make sure your loan doesn&39;t have a pre-payment penalty - Paying your auto loan off early can save you a bundle on finance charges.
• Avoid expensive "up-sells" - Car dealers can make a lot of money on overpriced perks like car mats, clear coating, extended warranties and "touch of class" packages. Either negotiate the prices way down or skip them.

With a little preparation and online work, it can be easy to get a great deal on a new car!

Emily Davidson is editor of CreditBloggers.com and a former credit expert for the credit bureau, TransUnion. She writes about credit and personal finance topics.