Another week of solid posts here at Studenomics. I’ve been true to my word about having 3-5 original posts a week here. I’m also excited to share some cool news with you guys.

1. I will be a launching an exclusive newsletter/private program here! More details will be released within the next few days. For now, don’t worry because it will be high quality and best of all, it will be free.

2. I’ve been working on lots of cool projects that will benefit the readers.

Since I’m running late once again and I have like 5 blog posts I still want to write, I’ll just throw the links out for you guys.

Monday:

The Wisdom Journal gave us 10 things that employers love to see in their employees.

Tuesday:

Fiscal Geek presented us with 12 ways to become a college entrepreneur.
Consumer Boomer answered the popular question: should you invest in Lending Club or is it too risky?

Wednesday:

Million Dollar Journey wrote about your worst enemy when investing in stocks.

Thursday:

The Digerati Life shared some tips for paying off a cash advance payday loan.
Gen X Finance told us how you can negotiate remote work with your employer.

Friday:

Debt Free Adventure shared some vacation planning tips with us.

Carnivals:

Carnival of Personal Finance
Carnival of Debt Reduction
Money Hacks Carnival
Best of Money Carnival

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There are arguably two major purchases that a 20-something will make: real estate and a car. Many of you reading this are in the car buying market and would love to know how-to buy a car.

How to buy a car

This is a guest post from Crystal of Budgeting in the Fun Stuff: an open financial diary. It’s a blog created for those in the next step– financially stable but not enough to do absolutely everything.

I work with car dealers as part of my job. I see the deals from both sides. Salesmen are not evil, but they are out for your money. Here’s how you can apply some of my car buying tips and learn how-to buy a car.

Negotiate Everything!

Did you know that absolutely EVERYTHING is negotiable? The price is the largest obvious haggling point, and if you plan to pay in cash that may be all you need to know. Have a price in mind before entering the dealership so you don’t get blind-sided by a few different sales techniques. I like Kelley Blue Book’’s valuations and will only pay that price or less.*

Negotiate the interest rate & more…

For everybody who needs to use financing (myself included until our car account is bigger), you can usually negotiate on the interest rate, the cost of warranties, the cost of insurance policies, and the cost of dealer add-ons. To be completely honest, I have never purchased an extended warranty, insurance policy (except GAP at a bargain price), or dealer adds, BUT some people swear by them, so I want you to know that they are also haggle worthy.

The interest rate is the big one. If you qualify for the manufacturer specials – like 0% for 36 months, 2.9% for 60 months, etc – those cannot usually be beat. Period. Take them if you can get them if you were going to finance your car anyway. Check around for other bank rates and credit unions if you want assurances.

But, if you are buying a used vehicle, don’t qualify for the special rates, or there are no special rates being advertised for the vehicle you are buying (check manufacturer websites), then you can and should negotiate down your interest rate. Simply check what rates you’d be qualified for from other banks or credit unions before you go to the dealer. If you know a credit union will give you a 5% loan, then you know that you want a loan for 5% or less from the dealer, right? If the finance guy offers you 7% and says that’s the best he can do, ask if he’s sure since you won’t sign the deal at that rate. He’ll either find a better rate with a different bank that the dealer uses or will stand pat. If he refuses to budge, calmly leave and come back with your own financing later. If you rather get pre-approved for a loan, that would work too…I usually don’t spend the time on that unless it’s necessary. It will save you hundreds and sometimes thousands of dollars to simply work for the best rate possible.

Use the same language when discussing the rest. For a GAP policy, don’t pay more than a total of 4% of the price of the car. That’s a standard rate for a policy that will cover the negative equity of your vehicle if it’s smashed or stolen.

Let’s talk extended warranty

If you want an extended warranty, I’d check online before going to the dealer. You can usually get one for $1000- $2000 depending on the vehicle, so use that knowledge when discussing prices.

Knowledge is power

Know what you want, how much you are willing to pay, what interest rate you can get, and what options you want before you ever set foot in a car dealership. Never give them the numbers you know…that would just make it easy for them to beat them by just a few dollars. If you want the best deal possible, keep your numbers to yourself and keep saying that you would need better in order for this deal to happen. When they finally stand pat after prodding, you can decide whether that’s a deal you are comfortable with or not. *

Watch out for the paperwork!

Please remember to read all of the paperwork before signing. The retail installment contract is the most important piece of paper you sign since that is your legal deal. Read it carefully, make sure you understand the numbers, and feel free to ask if something looks hinky. Hinky is to be expected, so read carefully and work the numbers for yourself (I actually bring a calculator with me).

Looking to sell your car?

I’ve bought two cars in the last 5 years and have gotten fair deals. I’ve followed my own advice and NEVER traded in my old cars. You’ll get a way better deal by using Craigslist 99% of the time. Look up what you could sell it for yourself before leaving the house…it’s easy to say no when you know you can do better.*

Doesn’t this make you want to buy your next car with cash? Yeah, me too. Hope this helps and good luck!

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How-to Get Rich Quick Revisited

March 10, 2010

I had a satirical piece on how to get rich quick up here a few months ago. I found that most of the readers enjoyed the article. Well something really funny happened recently in regards to the topic of getting rich quick. The other day I received an email from an affiliate manager for one [...]

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What is the Best Online Bank Account? A Look At Offers & Criteria

March 9, 2010

Ambitious 20-somethings are always looking to find the best return on their money. This leads to a few important questions: What is the best online bank account?  Where can I do the best online banking? Many long time readers of Studenomics have asked that I try to squeeze in a few investing and entrepreneurship posts [...]

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Unautomate Your Finances

March 9, 2010

Today Adam Baker has finally launched his eBook: Unautomate Your Finances.
I was going to do a full review but I simply don’t know how to review this project. My thoughts on the eBook could be summarized into two key points (positive & negative):
1. Baker’s passion for finances transcends into phenomenal writing and quality advice on [...]

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