Most consumers dread price negotiations at the dealership because they feel that they are not in control. While it is true that automotive retailers train their salespeople to negotiate, they don't hold all the cards at the table. After all, you can choose to buy today, buy tomorrow, or buy somewhere else. Consumers with realistic expectations who are armed with some basic information-and the willingness to walkaway from the deal-can always control the negotiation.
Before heading to the dealer, research basic vehicle pricing on the cars you are interested in. Knowing the dealer's invoice price for the vehicle and any desired options is critical. Gather this information-from several different sources, understanding that you're looking for a ballpark value and not an exact value down to the penny. It's also important to know what incentives or rebates might be available to lower the price of the car below the invoice price. Check local advertising to see if that particular model is advertised at a discount, or with a factory rebate. Finally, some automotive Web sites publish what they claim is the realistic target selling price of a new vehicle: Check Edmunds.com or KBB.com for these values. Write all of the numbers down, and then calculate a dollar amount that you are willing to pay, including a fair profit to the dealership. And remember, you must pay tax on any incentives or rebates that are applied to the new vehicle.