Deal School 2026
Ray Shefska's complete car buying playbook — updated for the 2026 market. Check off each lesson as you go.
Created by Ray Shefska — 40+ years as a car dealer, now America's most trusted car buying advocate — and his son Zach Shefska, CEO of CarEdge.
This free car buying checklist walks you through every step — understanding 2026 market conditions, finding the right new or used car, negotiating out-the-door pricing, and surviving the finance office. Check off each lesson as you complete it.
How the New Car Market Has Changed
25% tariffs on imported vehicles remain in effect — expect $2,000–$6,000 in added cost
How the Used Car Market Has Changed
Good news: lease returns rebounding + tax refunds running 10% higher this year (Cox Automotive)
Pre-tariff inventory (imported before April 2025) = potential savings
How Much Car Can I Afford?
Ray's 10% rule: car payment should never exceed 10% of monthly gross income
29.3% of loans are now 72+ months — also a record. Longer terms = much more interest paid
Gas prices spiking: national avg hit $3.48/gal (AAA, 3/9/26) — up 58¢ in one month. Factor fuel costs into your budget!
NEW: Auto Loan Interest Tax Deduction
Under the One Big Beautiful Bill Act, you can deduct up to $10,000/year in auto loan interest
Key Qualifications
- ✓NEW vehicles only — used car loans and leases do NOT qualify
- ✓Vehicle must have final assembly in the United States (VIN starts with 1, 4, or 5)
- ✓Personal use only — no business or commercial vehicles
- ✓Phases out at $100K income (single) / $200K (joint filers)
- ✓Available even if you take the standard deduction (no itemizing required)
- ✓You must include the Vehicle Identification Number (VIN) on your tax return
Know Your Needs Before Buying
Buy what you need, not what you want — the savings over time are enormous
Gas prices are spiking: $3.48/gal nationally (AAA, 3/9/26), up from $2.90 a month ago. Factor fuel economy into every purchase decision.
How to Find the New Car You Want to Buy
How to Find the Used Car You Want to Buy
Subprime share hit 17.5% — lenders are loosening, which means more risk for you
ALWAYS get a Pre-Purchase Inspection (PPI). No PPI allowed = walk away.
Prepare to Contact the Dealer
Negotiate the out-the-door price, not the monthly payment.
If a dealer only talks monthly payments, they're hiding the real cost
You can do ALL of this remotely via email. If a dealer requires you to come in just to get a price, find a different dealer.
Who to Contact at the Dealership
If a dealer won't negotiate remotely, find one who will — use our Dealer Transparency Index
Setting the Tone
Contact 3–5 dealers simultaneously and let them compete
You should never have to visit a dealership to get a price. Do it all from your couch.
Negotiation Fundamentals
Never reveal your maximum budget to the dealer.
Show What You Know
Negotiating a Used Car
If a dealer won't let you get a PPI, don't do business with them.
Trading In Your Car
Come prepared with multiple offers from online car buyers (Carvana, CarMax, KBB Instant Offer)
The Test Drive
It's not a deal until you get an independent PPI
The two most important Deal School takeaways: (1) OTD price (2) Always get a PPI
Final Negotiations
State your target clearly: "I'll close today at $X out the door"
The Purchase Order
It's not over yet. The finance office is where dealers make much of their profit.
Read EVERYTHING before you sign — every line item, every fee
Welcome to the Finance Office
Think smart and stay patient. This is round two.
Credit Applications and Interest Rates
Never give your SSN until you're ready to apply for a loan
Ask about the buy rate — the finance manager will know you mean business
"What's the buy rate?" — This one question signals you know how the game works.
Negative Equity: What to Know If You're Underwater
If you trade in with negative equity, that balance rolls into your new loan — making it even larger
What to do: pay down your loan before trading, make a larger down payment, or wait until you're right-side up
Outside Lending and Paying Cash
Credit unions often beat dealer rates — shop around first
If the auto loan interest deduction applies, financing a US-assembled new car may save you more than paying cash
The F&I Menu Products
Every product on the menu costs you — remember your base payment
NEVER let them tie your interest rate to a product. That's non-compliant.
The finance manager needs YOUR deal for their paycheck — they're willing to negotiate
Tap any product to see Ray's verdict