Buying a new car is exciting. Wait, scratch that. Having a new car is exciting — the actual process of buying it can be confusing, frustrating and time-consuming, and you may end up getting screwed. Before you drop a couple thousand dollars on a down payment for your dream car, check out these hints from Philip Reed, consumer advice editor at edmunds.com and co-author with Mike Hudson of “Strategies for Smart Car Buyers.”

Educate yourself. An hour's worth of research could save you a couple thousand dollars, Reed said. If you know the market value of a car, you are in a better position to negotiate.

Shop around. Visit more than one dealership and look at more than one type of car. It can save you a lot of money.

Use the dealer's Internet department, which is colorblind and age-blind. Many people feel more comfortable shopping in a low-pressure situation than at the dealership. And online, you can find out the price first, which dealers try to keep hidden as long as possible on the lot.

If you're buying a used car, consider using a private party. Browse the car ads in the newspaper, on craigslist.com or autotrader.com. “The asking price will be lower, the negotiation will be a lot easier,” Reed said. The main disadvantage is lack of selection. If you're lusting after a green Camaro, you might be looking for months before finding one being sold by a private party.

Take a used car to a mechanic to have it inspected. It may appear to drive fine, but there could be major problems under the hood. If there's something that needs to be fixed, that can become part of the negotiation. You can also visit carfax.com to check a car's history.

Determine if a used car is still under warranty. It usually is if it's less than three years old. If so, make sure the warranty transferable.

Don't be intimidated by salespeople who will try to sell you fabric protection, an alarm and other expensive upgrades after you agree to buy the car. “Most of the things that are sold in the (Finance and Insurance room) are high-profit, and, in the kindest way, they're of questionable value. So it's a good idea to think it through beforehand and know what's coming,” Reed said.

Jessica Belasco | 210SA contributor