Purchasing a car is such a complex job. Besides having to decide upon a vehicle and arrange for financing, you need to scour the car dealing markets for a great car dealer and get insurance on the car. With every step and decision you make, there are a great many official procedures. The car dealer is one of the most confusing people you will meet along the way, so no car buyer can afford to get into a car dealer's showroom without having prepared himself for it. Go somewhere that has a good name.

The secret behind every car dealer is that they only care about increasing their income the commission they will make off of the vehicle they sell you, plus any add-ons.

In some states you can purchase your car insurance from the car dealer, without having to go to some third party. Bad idea. The reason for this is they will markup your insurance rate because again, they are in it for profit. Car dealers are driven by the common need to feather their nest; service to the customer is not their main priority. It IS a priority, because they will want you back again, but your specific financial needs are not at the top of their list.

You will notice they will give you wonderful service while you are there. Again, this is because they are in the wining and dining stage that appears before every closed deal. Obviously, you are more likely to purchase something from someone that treats you well. In the eyes of the car dealership, they are competing with all of the other dealers that are hoping to make a sale every time you come by while you are making a major financial decision.

They are hoping you are going to be so blinded by their niceties that that will influence your decision to purchase, lease, or walk away.

Even if you are enjoying being given the royal treatment, stop for a minute if you hear the words gap insurance. Gap insurance is an insurance coverage that will cover you in the event of a total loss. It will cover the "gap" created by the difference between the value of your vehicle and what you currently owe on it. You may think you won't need it, but you will.

From the very first drive onwards it depreciates in value, so even if you got in a wreck or had it stolen minutes after driving away, you are going to owe more money than you intended. Gap insurance is meant to cover these issues. It is a good idea to get it, a bad idea to get it from the car dealership. Again, the same principle applies. They have already marked it up to increase the volume of their bank accounts. In most cases, the markup can be anywhere from $500 -- $1000 above the cost of the actual coverage. This is a known fact published in Automotive News.

There are several solid dealers for Gap Insurance either online or through a local car insurance company. When you are in the process of getting a suitable insurance for your newly purchased or leased vehicle, do it through an actual insurance company. There is nothing wrong with the insurance offered through your car dealer, it will provide you with the promise it offers, but it will also cost you a lot more.