Car Shopping TipsIt is important to know your rights when buying a car, new or used. Plunking down thousands of dollars only to find you were sold a lemon is not good for the soul---or your stress level.

Fortunately, most states have laws in place to help protect consumers called Lemon Laws. Each state's lemon laws are different, so you will need to research your state's law to know your rights before heading to the dealer. We found a neat site that does a pretty good job compiling all the lemon laws from each state.

Knowing your state's lemon laws is just half the battle. Here are some other tips that can help you avoid problems when buying a car:

1. When buying a used car, be sure to take it for a test drive! Arrange an appointment with your local autoshop before you go see the car. Let them know you might be bringing a car by that you want checked out. Have your local auto shop spend 10-15 minutes looking it over. They can tell you a lot about a car just by looking at it.

2. Do you homework online beforehand. We always recommend checking out Edmunds.com. They not only offer reviews of both new and used cars, but you can also look up the "blue book" value of a car, and what you should be paying for a car from the dealership or a private party. Armed with this information, you can confidently walk into any dealership and give them the price you want.

3. Get a CARFAX report. For $24.99 you can buy a report that will show you the history of the car you are about to buy. Was it a rental car at one point? (Note: Historically, cars that were previously rentals can have more problems than those that were never rentals since they seem to get abused more). Was the car ever in an accident? How many owners has the car had over the years? All this information is extremely valuable in determining whether or not you should buy the car. Most dealerships will provide you with the CARFAX report free of charge. If they don't, ask for it. If you are dealing with a private party, you can take down the VIN number usually located on the dashboard. The VIN number is visible from looking into the windshield on the driver's side. You can then use this VIN number to purchase your own CARFAX report.Locate Your VIN Number

4. Avoid dealerships in highly congested cities and towns. Dealers that don't have any trouble getting customers to walk in are less likely to offer you a deal. Try going a little farther out of town to a more rural dealership. It may take a little more time, but we found that dealers who have less foot traffic tend to be more flexible on prices, and more friendly overall.

5. Don't fall for the dealer follow-up call. We have heard of this scam on more than one occasion. You buy a car, sign the papers and go home. The next day you get a call. The salesman screwed up the numbers. He needs you to come back and pay a few hundred more dollars, or it is going to come out of his pocket. Just tell them "No thanks.", and hang up!

Always remember to trust your instincts when buying a car. If you are uncomfortable, walk away. Dealers will try to give you the hard sell, threaten that the car won't be there when you get back. Just remember, there are plenty of other cars and dealerships out there. If you are not comfortable with one dealer, keep going to others until you find one that treats you right and offers the price you asked for.