Haggling, horse-trading, bartering. Call it what you will. Though some buyers may consider it great sport to try and beat the last penny of profit out of an auto dealer, most consumers hate the hassle. In todays highly competitive auto market, dealers and automakers are beginning to realize that many car buyers would just as soon face a firing squad as go through the tribulations of negotiating for a new car. Thank goodness the system is beginning to change. But until then, here are six steps to help you deal with the dealer:

Know the car you want and how much you can afford to pay. Experts say your annual income should be at least twice the price of the new car you buy. Check the Buy New Section"! section in the front page of this site . This will give you an idea of all the models offered by each manufacturer in several price ranges. Don t waste everyone s time test-driving and negotiating for a car you can't possibly afford.

Be prepared. Review the comparespecifications in the Buy New Section for cars you're interested in. Study the suggested retail prices and dealers cost for the model and options you want.
Find out about current factory-to-dealer rebates and current factory-to-customer rebates. If theres a choice between a cash rebate and discount financing, determine which is best for you.

Qualify the dealer. Call several dealers within a reasonable driving distance and ask each if they have the car on their lot with the options you want. Youll nearly always get a better deal if the dealer doesnt have to trade with another dealer for the car you want.

Remember the golden rule of car-buying: First negotiate the price of the car. Then discuss financing. Then discuss the value of your trade-in. Always keep the three transactions separate; salespeople are adept at giving away with one hand and taking a lot more with the other.

For instance, they may talk about monthly payments instead of the cars price; by stretching out the length of a loan with correspondingly lower monthly payments they can make an overpriced car seem affordable.

Keep cool. The salesperson may try to pressure you Are you ready to buy today? The salesperson may play on your sympathy I'll lose my job if I agree to ... The salesperson may intimidate you The dealer cost figures you have are all wrong. Or the salesperson may indicate you have a deal and then turn you over to the sales manager who nixes it; together, theyll work on you to sweeten the deal in their favour.

Through it all, stay confident of your research, and remember the Scouts motto: Be prepared. Be prepared to put down a deposit as soon as you've arrived a fair price, and if you feel mistreated, be prepared to walk out of the dealership.

Let the dealer make a buck. Bear in mind that profit is not a dirty word, and that no dealer is going to sell you a car for free and remain in business.

Also read Used or New ?