* Know exactly what you want before you even leave the house to go shopping for a new car. An undecided person can easily be manipulated, and usually not in that individuals favor. Use the internet, brochures, fact sheets and so forth, in advance to determine precisely what you are looking for and determine if it's within your budget.

* While you're talking terms with a car dealer, you should remember that they're practiced in the skill of negotiation -  it's their job to get the most money for the vehicle that is possible. The salesperson doesn't want to fight you, he needs you to buy the car after all, but the dealership needs him to get as much as possible for obvious reasons.

* Try to foster a win-win position with the salesperson and the manager. The dealer inevitably needs to make some profit on the deal and you would like to pay a fair price, but not more than you need to. You can frequently negotiate a price that's five hundred dollars above dealer cost.

* Bring advertisements from other dealerships with you. If you live in a small city or town buy several weekend papers and scour them for car advertisements - you might be astounded at the price difference due to the tight competition a larger city affords.

* Have your budget and finances in order. If you are purchasing on loan, try to finance your loan before you arrive at the dealership. Auto dealers are not the only ones who may be offering great financial deals. You'll be able to acquire a loan from your bank or even from internet lenders.

* Remember to exclusively focus and negotiate on the total cost of the vehicle and don't mention your trade-in until you have that price. Remember that dealers have a way of generating additional profit out of the "extras" and you might not even realize that you bought those extras till the deal has been sealed, and so always talk the bottom line price. Only when the total cost of the vehicle has been completely negotiated will you want to talk about interest, monthly payments or trade-in.

* Know the terminology: The sticker price that you find on the car is the “manufacturer’s suggested retail price”. You do not want to pay this price unless you are buying a car that is in severe demand and dealers are unwilling to budge on price. The "factory invoice" is what the dealer paid the manufacturer for the car. The dealer might present you with an invoice with this price on it. If the dealer states that he will sell the vehicle “below invoice”, the "factory invoice" price likely isn’t what the dealer had to pay for the vehicle. The more you know about "holdbacks", "factory-to-dealer incentive" payments and additional "allowances" the dealer will obtain, the better off you'll make out on the final deal. These incentives can add up to be $500 to $3000 dollars or even more. You could buy a car at $200 below the "factory invoice" and still be spending more than you needed to.

* Inquire if the auto maker offers a "factory to customer" rebate straight from the manufacturer.

* Don't appear desperate, despair in some automobile dealers’ eyes equates to a higher price for you. If you're completely without transportation, borrow or rent a vehicle until you discover the right price on the right car. Whenever you hurry your purchase or look like you're in a hurry to find something to drive, you'll generally wind up paying too much.

* Do your research to make certain you obtain a fair price on your trade-in, be firm and back it up with recent offers. Remember the dealer will also have to make a profit when he re-sells your old car to someone else. The dealer will likely have to provide a warrantee on your trade-in when they eventually sell your car - that's a risk to them and will be calculated into the price they offer you. Saving the dealer from that risk by selling the car yourself will inevitably put you in a more commanding position when you buy your new vehicle.

* Occasionally a dealership might not have all of the options you would like on your car sitting on his lot and must order the car from the manufacturer or trade with another dealer in the region. The dealer might expect you to pay five hundred or a thousand dollar deposit on the car to demonstrate that you're sincere about the purchase. Try not to put down more than five hundred dollars and make sure to pay with a credit card, when you pay with a charge card you have the option to challenge any problems that could arise with your final purchase price.

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