When you are looking at cars for sale, you want to make sure that you pay a reasonable amount. Luckily, there are multiple steps you can take to ensure you end up with a good deal on a vehicle.

#1 Know Your Own Budget

First, you need to make sure that you know your own budget. Don't go car shopping without knowing what you can spend. This can result in you setting your expectations for a new vehicle way too high.

Instead, sit down and look at your savings. Determine how much you can afford to put down as a deposit or how much cash you can afford to pay for a vehicle. Then, look at your monthly budget to determine what you can afford to pay to pay as a monthly payment. Keep in mind that with a new vehicle and full coverage, you may have to make a larger car insurance payment in addition to your car loan payment.

Knowing your budget will empower you to research and look at vehicles that you can afford.

#2 Look at New and Used Vehicles

Do not just limit yourself to brand new vehicles. Being willing to look at new and used cars will open up the number of vehicles that are available to you at your current income level.

When looking at new cars, look at the long-term value of similar vehicles and really consider what features you need and are willing to pay for.

There are lots of gently used cars on the market that are only a few years old. When looking at gently used cars, focus on certified pre-owned cars that meet specific quality standards set by the manufacturer.

With older used cars, you need to make sure that you have the car inspected by an independent mechanic so that you know the true condition of the vehicle.

#3 Negotiate Car Price and Trade-In Separately

When you go car shopping, don't mention that you have a vehicle to trade in. Instead, look at vehicles and work with the dealer to come to a final purchase price for the vehicle without taking into consideration a trade-in. This will help you negotiate and find out the dealer's bottom price for the vehicle before bringing up a trade in.

In you have a vehicle that you want to trade in, bring it up once you have set a price for the car that you want to buy. Be sure to clean up your vehicle before showing it to the dealership and make sure that you have researched the current price of your vehicle in the market. Keep in mind that you will probably get less than the market value of the vehicle, as the dealership is going to want to make money on the trade-in.

Negotiating the trade-in separate from the purchase price can allow you to further lower the purchase price and ensure that you get a fair value for your previous vehicle.

In order to get a good deal on a vehicle, know what you can pay so you know what is a good deal for you. Look at new, gently used, and older used vehicles in order to have the widest market of available vehicles.