At the risk of offending every car manufacturer on the planet, I'm here to tell you that buying a very expensive car makes absolutely no sense. There, I've said it.

Now I can hear you saying, "But an expensive car holds its value longer." My retort? Not really. Any car loses a lot of value the minute you drive it off the lot.

For an average car, that translates to 65% over 5 years. Even a Mercedes E350 loses 64% in the same period. So it makes no sense to apply for a longer car loan just so you can show off to the neighbors.

Given the rapid decline in a car's value, the longer the loan, the more chance you'll have of being upside down, meaning at some point you'll owe more than the car is worth.

So don't take a car loan that is longer than 48 months. And if you can't afford the monthly payments on a shorter loan, you can't afford that car.

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After you've "sealed the deal" with a salesman on a new car, don't get talked into padded options. All the padding is in the dealer profit! Just say no to...

1. An extended warranty. Most cars come equipped with a 3-year/36,000 mile or 5-year/50,000 mile standard warranty. We generally believe extended warranties are just excuses to get more money from you. In general, warranties exclude more than they include.

2. Shoulda-woulda-coulda: Already have an extended warranty? Not to worry. Send a letter, certified, return receipt requested, that says you want to cancel your extended warranty and have the remaining premium refunded. Be sure to carbon copy the car manufacturer's public relations department.

3. Rust proofing, undercoating, glazing... "Protection Packages." You don't need these extras. Most manufacturers do an excellent job in both interior and exterior rust proofing. In any case, don't buy it from the dealer. You usually can get rust proofing and undercoating for hundreds less from companies that specialize in these types of services.

4. Credit life insurance. Up to 60% of the premium for this type of coverage, depending on the state and coverage, is pure profit for the dealer¬ship...and then they conveniently add the cost of the insurance in the loan amount...you're paying interest on the insurance! Don't do it. And if you get a car loan from a bank, make sure they don't automatically add a life insurance premium to the loan.

Here are a few more Dolan's car-buying guidelines:

• Compare prices at three dealerships.
• Negotiate at the end of the month - that's when many dealerships are trying to make their sales quotas.
• Get all price quotes in writing and, if you do decide to buy, make sure even the smallest detail (like free floor mats) is written into the sales contract.
• Check out the dealership service department before you buy. Stop by early one morning and ask car owners in line how they rate the service department.
• Arrange your own financing at your local bank or credit union before you go to the dealer's showroom.
• If you want to make a few more dollars, sell your present car yourself...you'll probably do better with cash in your pocket than with a trade-in.

If you're in the market for a new car, remember: Do your homework, take control, keep your cool and check out these articles:

• 10 Rules of Car Buying (and Leasing!)
• Having Your New Car Repaired
Should You Lease Your Next Car? -->