In 1955, a Ford Thunderbird cost $2,944.00. Today, the same car costs what my parents paid for their home, so buying a new car is no small investment. You want to do everything possible to ensure you get the best deal.
Never make a fast decision. If you are completely without transportation, rent a vehicle until you find the right car, or consider the bus system. If your local bus system is like mine, this could be a scary thought, but may help reduce the pressure to buy too quickly. When you rush a purchase, you usually end up with something that doesn't meet your needs..
Using the Internet, you can discover the typical retail cost of a specific make and model, and with a little digging, you can find out the wholesale cost as well. This information makes you a powerful negotiator, and less likely to spend more than necessary.
It is not realistic to expect to get your new car at or below dealer cost. It would be nice, but they need to make some profit, and you need to feel you paid a fair price, so some compromise is needed. It is fair to negotiate to a price that's $500 above dealer cost or about 20% off the sticker price. So take along your calculator and a printout of your internet research when you shop.
If the only cars on the lot have expensive options you don't care for, you might want to order a car to your specifications. You might wait a bit, but will save money on options you don't need.
You might find the car you want and then find it is not what you really wanted, so check with the dealership to see if you can return the car if you don't like it. I did this once. The car I purchased ended up less comfortable than my old car, so the next morning I took it back for my check and my trade-in. Many dealerships now offer this option.
You may have heard the advice to shop the last day of the month for better deals. It's true that you might get a better deal from a salesman then, but its not carved in stone.
As far as trade-ins go, do your internet research here, too as knowing the value of your old car makes it easier to negotiate a better price for it. Try not to talk about a trade-in possibility until you get a purchase price.
I researched the value of my Mazda MPV and found that it was $3200. One dealership offered me $1200 because "they'd have to repaint it". Another dealership offered me $3200 and complimented me on taking such good care of the engine. Stick to your guns when it comes to getting the value of your trade-in, especially if you
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