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Research (Do Your Homework) - After you have narrowed down your choices of vehicles you want, go and research their prices on popular sites like Kellys Blue Book, Edmunds, Yahoo Auto Finance, etc.

Get Your Credit Report First - Verify your credit score is 680 or higher, this way you can negotiate a better APR.

Test Drive - Make sure before you start negotiating on pricing, you test drive the vehicle you want to purchase. Make sure you test drive during the day time, inspect the car inside out, and take it on a road where there is less traffic noise.

Negotiating - Don't seem desperate. Don't let the salesman or his manager know upfront you've done you're homework. They will want you to pay this sticker price. Don't Do It. Tell them to come down on the price. They will ask you how much you want to pay? Don't throw out the first number, if its within a few hundred dollars of the sticker price, they will say they can work something out. It's BS!

Financing - They will take you to the finance manager and they will tell you they deal with you're bank and will get you the best possible rate. Thats crap! They certainly deal with your'e bank (who doesn't), but that doesn't mean the finance room has a mark up on the rate!

Trade In - If you're considering trading your old vehicle in for the new car, don't let the dealer know that upfront. Negotiate your price for the car you want first, then at end discuss trade in.

Basically it comes down to this. If you know the the vehicle you want, research its price, you will have a good idea of what's a fair price. But be cautioned, Kellys Blue Book, Edmunds, and others while provide good basic overview of the price of the car you want to buy, it's not the entire picture. If you don't belive me, compare the price of the same car, with same specifications on the major sites, and you will see a variance in the prices. Proof enough? Ok. What the true value of what a car is worth is found in a secret book knows as the "Black Book", this is what the dealers use. Remember theres the Kellys Blue Book, NADA (National Automobile Dealers Association) Used Car Guide--an orange book, and the Black Book. Anyhow, after you get a good idea of what the true fair value price of the vehicle is, it's time to negotiate.


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