When Realtor Elizabeth Newbury walked into a prestigious local luxury car dealership in Dallas, she was ready to deal. Self-confident and well informed, Newbury was the ideal customer, pre-sold on the model and features she wanted. All the car salesman had left to do was negotiate terms. What he didn't know was that Newbury is a former Cadillac salesperson who knows the ins and outs of how to negotiate on a new car. Was he in for a surprise!

Newbury had already worked out a formula of what she felt was a fair price to pay, that also allowed the dealer a fair profit, about 10 percent off the sticker and low financing rate. She also had a trade-in. A deal was struck and Newbury drove her new car home that night.

But not every Realtor can deal on a new car with the confidence of a former car salesperson. Car showrooms can be intimidating for consumers, where there are lots of opportunities to overpay not only for the car, but for non-standard equipment as well. To add to the confusion, shoppers must also know whether to buy or lease, and how to finance those options.

Newbury says to first decide whether you want to buy or lease, so you will be less easily confused in the showroom.

As independent contractors, leasing a car can offer some very real advantages for Realtors. "Those who want more amenities and luxury can usually lease a better car for less in monthly payments than it would cost to purchase a more economic model," says Newbury. "The car can be turned back in two or three years, and the agent can drive a new one away. Leasing also offers tax advantages as a major percentage of the cost of the lease can be deducted without the bookkeeping hassle of tracking mileage, gas, repairs, and depreciation."

Newbury says that keeping up with car deductions is not her style and that's one reason why she chose a lease. "There's an opportunity cost to consider," says the time-sensitive agent. "I'd rather spend my time booking appointments than keeping up with the accounting that goes along with receipts, mileage and all that."

Leasing may be the answer for your next vehicle, too, but if you've never leased before, negotiating a lease can be intimidating. It doesn't have to be. Like buying a car, leases are negotiated on the purchase price, estimated value over time, and current financing costs.

Newbury offers the following suggestions:

Lease or buy according to how you typically use a car

Use your past behavior as a guide. Are you hard or gentle on cars? Does your car look more like a trash can than a vehicle? The more care you take with a car, the better lease candidate you are. Purchased cars can live on as hand-me-downs to teenagers, or second vehicles for road trips. Leased cars are turned back into the dealership long before their useful life is over.

Leases aren't the only answer, says Newbury. "Just as valid is buying a new or slightly used car and driving it until it's fully depreciated. It depends on the agent's business and individual style and tolerance for bookkeeping. In the long run, buying is probably better, you have something of some value at the end, but there is a lot to be said for the safety and cachet of "new."

Keep in mind that mileage is the major factor that depreciates a car. According to a guide published in Consumer Reports, if you drive more than 15,000 miles to work, transport children or pets frequently, haul heavy cargo, or travel gravel roads, buying is a better choice. If you keep your car in mint condition, plan to drive the car three years or less, and plan to use the car 12,000 miles per year or less, you are a good lease candidate.

"An agent who is working "smart" or sticking to his or her neighborhood will not put on excess mileage," suggests Newbury. "Buyer's agents tend to put on more miles than listing agents."

She also recommends that agents who want to lease but are afraid of racking up too many miles can still lease. "You can "buy" more miles and put them into the contract," advises Newbury. "If you aren't certain whether leasing or buying is better, ask your CPA or tax preparer, because it depends on your individual tax factors."

Choose a model that reflects your business style

Your automobile is your mobile office. You should shop in terms of comfort, convenience, and your most frequent activities.

"The type of car you choose also says a lot about you," warns Newbury. "It can turn off moderate sellers and buyers when an agent roars up in a brand new Mercedes. Such cars are for better for agents selling higher priced homes."

For her own car, Newbury chose a model that fits the way she does business. She farms central North Dallas and talks to a lot of for-sale-by-owners who are wary if agents appear too successful. She also has sold homes in several exclusive communities where residents expect to deal only with successful agents. "I found that in my Infiniti, I can fit in anywhere. It's luxurious, but not ostentatious, and very reasonable to operate."

And don't forget the little details. Newbury jokes that one of the selling points for her was the fact that her new car has five cupholders, an important amenity when transporting a family of buyers or agents on tour.

A lease is all about payments and convenience

"This is a business expense to you that is mostly deductable, so save yourself some stress and recognize that the dealer has to make some profit," suggests Newbury. "A small percent off the list price is a good deal. Expect the lease to cost more if you add upgrades to the basic model. The more you put down, the less the payments will be, but your CPA or tax advisor can tell you what's best."

As far as financing goes, Newbury says that dealers of one make of automobile don't vary that much on leases. "Where the differences are is that an foreign car dealership usually doesn't have special incentive programs the way American dealerships do," she says. "Dealers usually work closely with lenders to create special programs, and there is usually some kind of down payment expected."

Finally, buy a car because you want to, not because you saw a great ad in the newspaper. Before you visit a showroom, consider the following tip from Consumer Reports. Watch out for advertised specials that:

• Offer low rates for one day only
• Offer low mileage allowance on a lease (12,000 miles or under)
• Offer low monthly payments based on the manufacturer's suggested retail price (MSRP)
• Offer terms that outlast the warranty on the car.

Part II - What To Do When You Go To The Showroom will run tomorrow in Agent News.