How To Obtain The Best Price Through Negotiation

HOW TO OBTAIN THE BEST PRICE THROUGH NEGOTIATION
It is important to remember that car dealers will try and get you to pay as much as possible for your new car. Prior to going to the dealership, you must know how much you want to pay and for what kind of car. To determine this, first determine how much you can afford, then choose the right car for your needs. Keep in mind that if the car you are looking to purchase is in high demand, there will not be much room for negotiation.

Once you visit the dealership, an offer for the car you are looking to purchase will be made to you. Start by making a counter offer that is higher than what you wanted to pay, but obviously lower than the dealers initial offer. Don't make an offer that is too low in risk of looking like someone who does not know what they are talking about. The dealer will make a second offer, which you should again counteroffer. You will eventually find a middle road that satisfies the dealer's price and how much you wanted to pay. Once this figure is met, sign the papers and 'close the deal'.

Additional Tips:

Bring any information that you have with you to the dealership.
Precisely tell the car salesman what make, model and trimline you want.
Dealers may try to discredit any figures (prices, ect.) that you may have about the car you are looking for. Don't let them muscle you. Stand firm with your findings. If the salesman questions you as how you got that figure, just show them the print-outs of the online sources, newspapers, books, ect.. This will help establish that you are knowledgeable.
Its a good idea to bring a calculator with you so that you can calculate all figures yourself.
The salesman will probably walk away at some point in discussions and say that they need to speak to the financial manager. Most of the time, these actions are merely a pressure tactic. When they walk away, it is suggested that you get up and walk around as well. This will help relieve some stress that you may be experiencing and will make the salesman get back to you in a more timely manner.
When the sales person comes back, they'll most likely say your offer is too low. At that time offer a price that you are prepared to work with - a price a few hundred dollars above invoice.
If you you are offered a price that is favorable, accept it. If not, tell them you will get back to them and walk out.