• A car, whether new or used, is a significant purchase, generally costing at least several thousand dollars. Due to this high price, some negotiation between the buyer and the seller is expected. While negotiations can be stressful, if performed skillfully, they can save the buyer a considerable sum of money.
  
  

Know the Car's Value

• For new cars, the sticker price is not the same as what the dealer paid for it. The amount that the dealer paid is known as the "dealer's invoice" price. This number is easily discoverable through a basic Internet search using the make and model number. For used cars, look up the "blue book" value. Then, take the car to a mechanic and subtract from the resale value the money that must be spent on repairs.
  
  

Pit Dealers Against Each Other

• After you have visited a large number of dealers, get a final quote from each on the car yore interested in purchasing. Identify which dealer is offering you the lowest price. Then, approach the other dealers with this price and ask them to beat it. Take the prices offered you and approach the other dealers again, asking them to lower the price a second time. Repeat until the tactic ceases to produce results..
  
  

Buy at the Right Time

• There are certain times in which dealers are more eager to sell cars than others. Many dealers pay their sales staff in monthly commissions. For this reason, at the end of the month, salespeople may be anxious to make deals to reach certain quotas. By conducting negotiations at the end of the month, a customer might strike a better deal. Similarly, at the end of the year, many dealerships are eager to offload old models.
  
  

Take Your Time

• Before beginning negotiations, get comfortable. Clear your schedule, use the bathroom, eat something, and put on some comfortable clothes. If the buyer begins to feel antsy or eager to leave for reasons unrelated to the purchase, the seller may develop an advantage in the negotiations. However, don't let negotiations drag on too long. If the two parties are unable to reach a point of agreement after an hour, it's likely a deal won't happen.
  
  

Know Your Walk-away Price

• All buyers should have a so-called "walk-away" price. This is the absolute highest price at which the buyer is willing to purchase the car. You should know this number before entering negotiations and be willing to stick to it. However, do not reveal this number until the very end of negotiations, if at all. If you do reveal it, play it as a trump card.