There are three different new 2012 models, the pure coupe, the passion coupe, and the passion cabriolet convertible. An all-electric model is coming soon.

The smartfortwo cars are built by Mercedes-Benz and even though small in size, are one of the safest vehicles on the road with stability control, anti-lock brakes, a protective “safety cell” with eight air bags for superior crash protection.

They get excellent gas mileage (38 MPG on the highway), are comfortable, have plenty of head and leg room, and come with a unique automatic/manual transmission. They come in a number of stylish base colors, with interchangable color body panels.

The company is currently offering a $99/month lease deal on the 2012 smartfortwo pure coupe. It’s for 36 months and requires $999 cash down. This is the cheapest lease payment we’ve ever seen on a brand new car for 36 months. If you are in the market for a great little first car at the lowest monthly payment, this is the one.

You can go slightly more upscale with more features on the smartfortwo passion at $139/month for the 2012 passion coupe, 36 months, $999 down, or $199/month for the 2012 passion cabriolet, 36 months, $999 down. These are great lease deals as rated by LeaseGuide.com.

If you prefer not to lease, all these vehicles can be purchased with a 0.0% APR loan rate for up to 60 months.

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What are the best first cars? Which cars are cheapest? Which is safest? What should I pay? How much can I afford?

Where can I find cheap cars? How do I get a car loan?  What if I have no credit, or bad credit? How does the car buying process work? How will I know if I’m being cheated?

What about auto insurance? Which company has the best rates?

Should I buy a new car, or used? Buy from dealer or individual seller?

Can I sell/trade my car if I still owe money? How about leasing?

These are all common questions asked by first car buyers — or any car buyer.

We give you the the answers you need, the expert advice, and the specific knowledge you need so that you can go into your car buying experience with confidence that you’ll make the right decisions, get the best deals, and not get cheated.

Welcome to First Car Guide.

However, the catch is that those incentives are only good on selected vehicle models and styles, and only for a limited time.  If the particular brand, model, and style that you want is not one of those with incentives offers this month, you are back to square one — negotiating for deals the old fashion way.

A new company has come along that changes all that, and may change how we buy cars in the future.

TrueCar answers the question, “What should I pay for my car?” Even if you are a shrewd negotiator, you have to know your target price. You also would benefit by knowing what other people are paying for the same car, same model, same style that you want. With that knowledge, you will know the price you should be aiming at.

TrueCar tells you not only the MSRP sticker price for your car, but also the dealer’s invoice price and the average price that other people are paying in your area. They tell you what a good price, or a great price really is. They provide all of this new car pricing information at both a national and local level – free of charge – so you can understand how cars are being priced and sold all around the country.

Knowing the prices paid by dealers and other people is a great idea in itself, but it’s not the best part about TrueCar. Founder Scott Painter thought several years ago, “Why is it so hard to buy a new car? Why not simplify the car buying process?” And then a true revolution was born.

In addition to the free car pricing information, TrueCar also gives you a haggle-free, guaranteed price quote on brand new cars and trucks from local dealers in your area. It’s as easy as selecting the vehicle make and model, entering your local city zip code, and then reviewing the best local car prices against the car cost, average price paid, factory invoice price and MSRP. The prices offered are usually less than dealer invoice price.

TrueCar provides you free price quotes in writing from up to three dealers near you. You simply take our TrueCar price protection certificate to your local car dealer to get, and purchase the new vehicle of your choice at a significant savings off of the sticker price — and without all the usual hassle and haggling. It’s that simple.

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Special lease offers from car companies typiclly require a down payment (cap cost reduction), first month’s payment, and possibly a security deposit. It’s only a good deal if you adhere to the rules and make the down payment as required. If you choose not to make a down payment, it’s a different deal and one that is not so good anymore. Honda’s deals are different.

Honda offers special lease deals nearly every month on at least one style with each of it’s model lines. They can do this by reducing the sale price, reducing the finance rate (lease money factor), and boosting the lease-end residual value. All of these things, in combination, make for an attractively low monthly payment. In fact, these deals are much better than a customer could negotiate for himself. The “catch” is that the deals only apply to certain styles and not to all.

Therefore, customers have to decide if they want the style being promoted. To choose another model or style would require a normal, non-promotional lease at normal terms. However, Hondas are one of the most leaseable brands out there — due to high residual (resale) values — and are nearly always good deals when compared to other brands.

Honda uses the term $0-$0-$0-$0 lease for their special zero-down leases. It means customers pay no money at lease signing, no down payment, no first month’s payment, and no security deposit. It’s what other companies might call a sign-and-drive deal. Of course, if you choose to make a down payment and make the first month’s payment, you can reduce your monthly payment amount a bit.

At the time of this writing, Honda has special 36-month lease deals on the following models and styles:

Accord Coupe EX –  $310/month $0 due at signing

Accord Sedan EX –  $260/month $0 due at signing

Civic Sedan LX – $230/month $0 due at signing

Crosstour 2WD EX V6 –  $340/month $0 due at signing

CR-V 2WD LX –  $270/month $0 due at signing

Odyssey LX –  $260/month $0 due at signing

Pilot 2WD LX – $340/month $0 due at signing

All of the above car lease deals have been evaluated as either Excellent or Outstanding by LeaseGuide.com.

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The most common type of incentive is a rebate, which is given to customers at the time they buy the particular vehicle model and style on which the rebate is offered. It is applied as a down payment and is especially attractive to customers who might be short on their own down payment cash.

Rebates, when at least $2000, are generally better than 0% APR loan deals and save you more money. As you may know, if a car company is offering both a rebate and 0% APR (or other low-interest loan rate), you must choose one or the other, but not both.

American car companies (General Motors, Chrysler, and Ford) have traditionally offered the best and highest rebates, although there have exceptions. Rebates are usually largest at the end of the model year, during the months of September, October, November, and December. Car companies and dealers are trying to sell off last year’s models to make room for incoming new models.

Luxury car makers such as Mercedes, BMW, Audi, Lexus, Infiniti, and others typically don’t offer out-and-out rebates but may offer “loyalty bonuses” or other incentives, hoping to avoid being viewed as a “discount brand.”

In most cases, dealers don’t “contribute” to rebates. The money comes entirely from the car manufacturer. The dealer makes his full profit just as if he had sold the cars at full sticker price. Therefore, smart customers will ask the dealer to chip in additional discount of his own, to sweeten the deal.

Currently as this article is being written, there are some very attractive rebates being offered for November and December 2011. Here are some examples:

2011 Cadillac Escalade - $4000 rebate

2012 Cadillac Escalade - $3000 rebate

2011 and 2012 Cadillac SRX - $2000 rebate

2011 Chevrolet Impala - $4000 rebate

2011 Chevrolet HHR - $3500 rebate

2011 Chevrolet Malibu - $3000 rebate

2011 Chevrolet Suburban, Tahoe - $3500 rebate

2011 Buick Lacerne - $4000 rebate

2011 Buick Regal - $3000 rebate

2012 Jeep Liberty - $3000 rebate

2012 Dodge Avenger - $2500 rebate

2011 GMC - up to $4505 (2011 trucks, selected models)

Other brands are offering rebates across the board on most of their current models. Here are some examples:

Volvo - $1000 rebate (2011 and 2012 models)

Chrysler - $1000 rebate (2011 and 2012 models)

Dodge - $1000 rebate (2011 and 2012, most models)

Jeep - $1000 rebate (2011 and 2012 models)

Lincoln - up to $3000 (selected models)

Saab - $2000 rebate (2011 models)

You can get free price quotes on any of the above cars from Edmunds.comThe quotes will automatically include any cash-back rebates or discounts that are currently available.

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Incentives come in the form of direct-to-customer rebates, special lease deals, and low-interest loans, including 0% APR loan deals. See Best Car Deals for current new-car incentives, including 0% loans.

Zero percent financing, when offered, means that the customer pays no interest or finance charges on his car loan. This saves money. Monthly payments are smaller and total costs are reduced.

Calculating payments for a zero percent loan is easy. Simply divide the cost of the car by the number of months in the loan. Non-zero-percent loans are much more difficult to calculate and require a car loan calculator.

Are 0% loans good deals?

Maybe.

Zero percent loans are actually good deals but if the car company is also offering a large rebate (over $2000) on the car you want, the rebate is usually a better deal. The rebate is also better if you are short on down payment money because it acts as a down payment. Of course, you can’t take the rebate and the 0% loan — you must select one or the other, but not both.

Another reason you might not want to select the 0% APR loan is that it requires a very high credit score to “qualify.” Therefore, before you go to a dealer to accept a special low-interest or zero-interest loan deal, make sure you know your credit score in advance. You can get your credit score, free, at online services such as FreeCreditScore.comwhere you see your most recent credit score instantly with a simple signup.

Again, you can see car company incentives, including 0% APR car loans, at the Best Car Deals web site.

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The question is essentially this: “If a car dealer is offering a special promotional lease deal, a purchase rebate, and a low interest loan on the car I want, which one is the best deal?”

The short answer to this question is that the lease deal will nearly always be better — and it’s not simply because monthly payments are less. If the lease deal is one that is being offered by the car manufacturer, the company has usually applied a price discount, a low money factor (finance rate), and a high lease-end residual value. The combination of all these things makes for an attractive low monthly payment. Customers are not able to negotiate these kinds of deals for themselves  because a dealer only controls one of those three things — price.

By contrast, a manufacturer-to-customer rebate is essentially a price discount but doesn’t affect loan interest rate (assuming the customer is not paying cash). In fact, if a manufacturer is offer both a rebate and a low-interest (or 0%) loan rate, customers must select one or the other, but not both. A rebate is the best of the two if the rebate is large (over $2000) or the customer is short on down payment cash. A rebate acts as a down payment and reduces monthly payment amount.

A low-interest loan — or zero percent APR loan — is usually the least attractive of all the three options we’ve mentioned. Although it promises to create low monthly payments, a large rebate can do it better. And a special lease deal can do it even better yet.

Therefore, the next time you are confronted with a decision about whether it is better to lease or buy, and dealers are offering special manufacturer incentives, leasing will nearly always be the best choice — assuming you understand how leasing works and how to know if you are a good leasing candidate. See LeaseGuide.com for more details.

For information about current car company incentives, see Best Car Deals.

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Car companies often select certain models and styles for these rebates, and the selection can change from month to month.

Dealers can use factory-to-dealer cash (sometimes called “marketing support”) in almost any way they choose but most pass it along to customers in the form of price discounts. Some dealers might advertise the low prices (not the rebates themselves) or simply offer a discount to customers during the buying process. He may choose to give all or just some of the total rebate.

Most customers are not aware of which vehicles have factory-to-dealer rebates, or the amounts. Therefore, it is difficult to factor in those discounts in the negotiating process. However, our sister web site, Best Car Deals, provides such information.  Some of these rebates are very large and represent a significant discount off of sticker price. This is particularly true for last year’s leftover models that dealers must sell in order to make room for this year’s incoming models.

If a dealer gets a factory rebate on a particular model and gives it to customers as a price discount, he still makes his usual profit on that car, even though customers may be getting a great deal. Smart customers will expect the dealer to contribute some of his usual profit as an additional discount — which makes an even better deal. In many cases, customers can buy a car for less than dealer invoice price, which is only possible if the car manufacturer is helping with the deal.

In summary, factory-to-dealer rebates can be a large factor in making new cars — especially first cars — more affordable. Look for vehicles with the largest factory-to-dealer rebates.

You can get free price quotes for any vehicle at Edmunds.com. The prices you get will contain any current price discounts and manufacturer incentives that are available.

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If you decided to buy one of the cars that other people are buying the most, you could reasonably assume that those purchases are being made on the basis of those cars having most of the good characteristics that people want in a new car — such as good reliability, good safety ratings, good performance, good styling, good fuel economy, and good driving comfort.

Following is a list of the top ten best-selling new vehicles in the U.S. for the last several months:

1. Ford F-150 truck

2. Chevrolet Silverado truck

3. Toyota Camry

4. Nissan Altima

5. Honda Accord

6. Ford Fusion

7. Ford Escape

8. Chevrolet Cruze

9. Toyota Matrix

10. Ram truck

Notice that the top two vehicles, and the tenth, are pickup trucks. Trucks have always been on top of the list of best-sellers because they are not only sold as personal and utility vehicles, but also as commercial work vehicles.

The top car on the list is the Toyota Camry. This car has held the top position for years — for many good reasons. It has almost the perfect balance of all the things that car buyers want. It might not be perfect in any one thing but, overall, it has the best mix of everything. You could certainly find other cars that might have better styling, or better performance, or better fuel economy, or lower insurance cost, or more fun to drive — but you would be hard pressed to find all of these things in just the right mix as with the Camry.

The Nissan Altima and Honda Accord come in a very close second and third for essentially the same reasons that makes the Toyota Camry so popular. All of the cars have exceptional reliability, are economical to drive, maintain high resale values, and have a high value-to-price ratio.

The Ford Fusion and Ford Escape have risen in the rankings in the last year or two due to Ford’s improved reliability, safety, and styling. Ford is also a leader in innovative in-car technology, which has attracted many young drivers to its ranks.

The Chevrolet Cruze is the much improved old Cobalt with substantially better styling, performance, reliability, and safety. It, too, has attracted buyers who want a good solid car for an affordable price.

The Toyota Matrix makes the list as a very practical and economical small car with great interior space and fuel economy. It has excellent reliability and earns a Consumer Reports “Recommended” rating.

You can get free price quotes on any of the above cars from Edmunds.com. The prices will include any price discounts and manufacturer incentives currently available.

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If you simply want the fastest answer to that question, without explanation, we would say the Honda Civic is the best all-around car for teens. The Toyota Corolla would be a close second.

If you don’t like the Civic or Corolla there are other cars with similar characteristics and different styling that might suit you better.

But what is it about the Honda Civic, Toyota Corolla, and similar models that make them great as a first car for teenage drivers?

First, they are economical — relatively inexpensive to buy, inexpensive to insure, and inexpensive to drive.

It doesn’t cost much to buy a new or relatively new Civic. Used models might be a little higher priced that other brands but that works in your favor too. When you get ready to sell or trade, Honda and Toyota vehicles hold their resale value better than most.

Second, these cars have outstanding gas mileage, better than some hybrids, as much as 36 miles per gallon. And they run on regular fuel, the least expensive kind. Maintenance doesn’t cost much because the cars are so reliable — far more reliable than many other brands. The cars are relatively small and are driven by 4-cylinder engines that perform as well as many 6-cylinder models.

Next, the Civic and Corolla are safe. Many people equate small size with poor safety. Not true. The Civic and Corolla have “Top Safety Pick” ratings by the Insurance Institute for Highway Safety and consistently score well in Government crash tests. Both cars come with better than average safety features. Some models have Stability Control Assist, which is especially important for inexperienced drivers, and is highly recommended for all teenagers.

Finally, the Civic and Corolla are relatively inexpensive to insure, especially for teen drivers who pay the highest rates anyway. Four-door sedan versions are less expenisve to insure than 2-door coupes.

We’ve discussed our choices for best first car for teens. If you should decide on a different make or model, whether you buy new or used, make sure it has most of the same characteristics of the Honda Civic and Toyota Corolla.

You can get free price quotes for any of the mentioned vehicles at Edmunds.com. The prices you get will contain any price discounts and manufacturer incentives currently available.

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