1. Set a Budget and Stick to It – Start your car hunt by deciding on a maximum amount or monthly and down payment that you’d be willing to pay. With a max price in mind you can begin narrowing down the type of car that you’re looking for and you can use this number to your advantage as you negotiate prices later.
  2. Research Cars and Prices Online – There are a bunch of websites that provide an incredible amount of free, no pressure information on cars. Automotive.com, for example, has reviews, prices, photos and more on both new cars and used cars, depending on which you’re in the market for. Take the time to do your research online before you go to any dealership and you’ll be rewarded when you finally come face to face with a salesperson. Once you’ve narrowed your list of cars down to just a handful then print out the quote that you received and the vehicle’s invoice price and bring these with you to the dealership.
  3. Wait Until the End of the Month to Visit the Dealer – Car salesmen and dealerships have quotas to meet at the end of the month so, after researching prices online, wait until the last week of the month to go visit the dealer. Shopping at the end of the month alone could save you a few thousand on a car.
  4. Avoid Trading In Your Car – Without fail dealerships will try to low ball you on any trade-in value. On top of that, trading in your car at the dealership adds another layer of complexity to getting a new car. While it may be more convenient to trade-in, almost always you’ll make a few thousand extra dollars by selling your used car independently. To get a better idea on your current car’s value be sure to consult the Kelley Blue Book.
  5. Negotiate Like a Pro – For most, negotiation is not fun and especially not when you’re dealing with a car salesman. However, it’s not hard to walk in with a few tricks up your sleeve:

    • Don’t mention money until the salesperson tells you how much the car would cost. Once they say a price, then you know your negotiation starting point.
    • Once the initial price is stated, begin working the price downward toward the invoice price from online. Often you’ll be able to bring the price down to that price over even a bit lower.
    • Be prepared for an onslaught of “I can get the price there if you…” responses. Hold steady on the price, if you feel uncomfortable just say “my spouse won’t let me spend more than…” and stand firm on that number.
    • Turn and walk out if the salesperson can’t get you the price that you want. Odds are the salesperson will chase you down just before you get to the door. If not, you can always go back the next day if you really decide the price is worth it.