1. Know the precise price you are paying, sometimes extras can be added on without your approval.

2. Know the exact amount being financed. Things like insurance and warranties should be paid for in cash.

3. Know what your interest rate is, make sure the sales person points it out to you on the contract.

4. Know what your monthly payments are and compare them to the original amount that was quoted. If they are way higher, it is probably because the sales person sold you a lot of extras or quoted over a longer period of time.

5. Know the total number of payments. If you agreed to 36, but the sales person quoted on 48, he may have done this to make the car look more affordable, but the higher interest will cost you in the long run.

Go prepared. Uncertainty is your enemy, and salespeople are experienced at recognising and using it.

If you are not confident, take along a friend or relative who knows the ropes. A little extra caution now will save you potential headaches down the road.

(Before you commit your hard-earned cash, take a look at this article by Personal Finance Editor Kabous le Roux. It will save you a fortune, guaranteed.)