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Everyone knows you’re not supposed to pay sticker price for a new car. The final sales price ultimately depends on your negotiating skills. You’ll be facing off against an experienced salesman. Don’t go unprepared.

1. Beware of common sales tricks. Read Car Sales: Trick of the Trade.

2. Get preapproved. Unless you’re going to pay cash, make sure you get financing from your bank or credit union before you even step into the dealership. Often the salesman will give you a break on the sales price of the car but then rip you off on the cost of the loan. If the salesman can offer you a better loan package after you have negotiated a low price, then by all means go for it. Otherwise, stick to what you have.

3. Know what you want. Do as much research as you can. Read the consumer reports. Know which make and model you want to buy. Don’t let the dealership make this decision for you. Also find out the invoice price of the car, which is what the dealer paid for the car. You should never have to pay more than a few hundred dollars over the invoice price. In fact, sometimes you may be able to get a car for less than invoice. That’s when dealers get paid additional rebates from the manufacturer whenever they sell a car. You can find out the invoice price of your car by doing a simple Google search online. You will find many car-related websites also list invoice prices. Beware of their car reviews though. In what seems to be a conflict of interest, many of them have business relationships with car dealers and get paid for referrals. Some of them even sell cars themselves.

4. Don’t trade in your used car. You can always get more money selling your car yourself than trading it in.

5. Visit a dealership for a test drive. Go to a dealership to check the car out yourself. The reviews are one thing but if you don’t like the car, you shouldn’t have to buy it. Take the car for a test drive. Be upfront. Let the salesman know that’s all you there for. You might want to leave your checkbook and credit card at home. The salesman may still try to get you to buy a car that same day. Don’t give in.

6. Contact several dealerships and ask for their final quotes. Understand that a lot of dealers are reluctant to give you a quote without first negotiating with you in person, but when car sales are slow and the economy is in a recession, they may have no other choice. They’ll jump at any chance to get another car off their lot. Since you are only interested in one particular make and model, it will be easy for you to compare quotes. The person you will want to contact is the fleet sales or internet sales manager. Don’t get one of the regular sales people involved. That just means one more commission. Be as firm as possible. Tell them you’re not interested in negotiating. You don’t want to play any games. You just want the final price. If they ask you to come in, politely turn down their request. Give them your number in case they change their mind and then hang up.

7. Don’t be afraid to walk away. When you go to the dealership and the salesperson tries to pull a fast one on you and the deal suddenly changes, get up and tell him to his face that he can’t be trusted. Make sure you say this loud enough so the other customers can hear it. Then leave. This may sound harsh but the salesperson lied to you and needs to learn that there is a cost involved. If you don’t do it, they will continue to treat other customers that way.

8. Take your time. Don’t let them rush you. Take as much time as you need to clear up anything you don’t understand or would like to know more about.

9. Read the contract carefully. Clear up any abbreviations. Ask about any charges you don’t understand. Make sure everything you agreed on verbally is also stated in the contract.

Part 1 - Car Sales: Tricks of the Trade

Part 2 - How to Buy A New Car

Part 3 - How to Buy A Used Car

Photo Credit: Chicago Eye

• 12 Tips for Buying Cheap Tires
• Car Sales: Tricks of the Trade (Part 1 - Ultimate Car Buying Guide)
• Ultimate Car Buying Guide
• How to Buy a Used Car (Part 3 - Ultimate Car Buying Guide)
• 19 Ways to Save on Gas

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