The time has come for you to buy a new or used car. It's exciting and also somewhat nerve-wracking. You want to pick the best car for the money, but are overwhelmed by the large variety of choices. That's understandable, as it is easy to get swept up in everything.

The key to picking the right car and the dealership from which to buy it is to know exactly what to look for. If you follow the 5 steps outlined in this article, picking car should be a pretty painless and easy process for you.

Step 1: Determine What Kind of Car You Want

It's difficult to determine what dealership to go through if you do not know for certain which kind of car you want. That's why the first step of any car buying process should be to determine what kind of car you want. Do you want an SUV? A mini-van? A sedan? A convertible? Once you decide the type of vehicle you want, you can then begin narrowing down the search.

For this part of procedure, you may want to ask some car smart friends which automakers they would recommend. Or you may want to do some research online for vehicle reviews to determine which automakers make the best SUV, van, sedan or convertible (depending on what type of car you want).

After you pick the automaker, you can then pick the model. For this part, again, you may want to ask friends or do research online.

Step 2: Search for Dealerships

If you look around your city, chances are, you'll see a lot of dealerships. Each dealership is usually dedicated to selling one automaker's brand new cars and perhaps a mixture of used cars. By going online to a site like CarDealerCheck you can find dealerships in your area that offer new or used vehicles for purchase. You can also see the prices for the vehicles and potential payment plans on the site.

Make a list of 5 dealerships with the best selection and price.

Step 3: Go to the Dealerships

You may want to set aside a Friday or Saturday in which you can go to the dealerships and talk to salesmen about the vehicle you want. A test-drive is a definite thing to do, but you should also focus on making sure you get the best possible price for the vehicle. If you're unfamiliar with the negotiations process of buying a car, you'll want to check out our article on car price negotiations. The bottom line of negotiating is to make sure you get a great price and are not cheated by the salesman.

Keep in mind that you won't want to go into full-fledged negotiations at this point. You'll just want to get a general idea of what the price would be. Write notes of what each dealership says as far as price is concerned. Also make notes of what kind of service/warranty they offer.

Step 4: Pick a Dealership

Now that you've visited 5 different dealerships, you should be ready to pick one from which you'll purchase the vehicle. With this step, you'll simply be looking at the information you put down and thinking about which dealership is the best fit.

Step 5: Go Buy the Car

When you've picked the dealership from which you'll be purchasing the vehicle, it's time to actually go and buy the car. Before going, you should arm yourself with information about negotiating and prices so that you are fully prepared to encounter the salesperson that is out to get their way. You don't want to be pressured into a payment plan or price that you cannot afford, so make your case as effectively as possible. Lay it all on the table and tell the salesperson: “I want this vehicle for this price under this payment plan.” You may have to compromise a little, but you should still get a deal that is either identical to what you originally wanted or is quite similar. Take another test-drive with the vehicle before officially buying it, and if it's a used vehicle, get your mechanic to check it out.