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Remember the first time you bought a car? Prices and sales tactics have changed a lot since then, but one thing remains the same: The first-time buyer usually is an easy mark for a salesperson.

Why? Enthusiasm and lack of knowledge always lead to big profits in the auto business, and most young buyers are enthusiastic and untutored. Here's a quick plan to rein in their enthusiasm and raise their negotiating skills.

• Teach the kids to budget before they shop. How much can they spend in total dollars and/or per month? The figure should include allowances for insurance, gas, and maintenance.
• Teach them to do their homework before they shop: What cars in their price range are mechanically reliable? A search through Consumer Reports auto issues will help. What would insurance cost for a car like that? A quick call to your insurance agent will answer that.
• Teach them never to buy on their first visit to a dealership, even if they love the car. People who buy on the spot always pay more. A smart young person will find two cars at two different locations and play those two sellers off against each other. Prices tumble when real negotiating begins.
• Teach them how to recognize the best price. When they've found the car they like, ask your credit union to tell you what that specific car's "loan value" is, and make the loan value figure your targeted buying price. Negotiate up slowly from that figure.
• Teach them the power of smart financing. If your kids are paying cash, fine. But if they are financing--and particularly if you're signing with them--right now is the time to show them how to comparison-shop financing. Ask the seller to give you a completely filled out copy of the finance contract and bring that contract to your credit union. Compare each item on the seller's contract to the credit union contract, line for line. Nine times out of 10, your credit union will be dramatically cheaper.

A first-time buying experience should be an exciting experience. Follow these guidelines, and it will be a smart one, too.

Editor's note: Remar Sutton's car-buying tips have been featured on "Good Morning America," "Today," "20/20," "Nightline," and in magazines such as People, Newsweek, and Credit Union Magazine. He's president of the national Consumer Task Force for Automotive Issues. He writes this column exclusively for credit union members.

Copyright 1999 Credit Union National Association, Inc. Information subject to change without notice.
For use with members of a single credit union. All other rights reserved.