First thing you need to know is how to negotiate when you are buying a car. If you want to save money while you are negotiating, you should negotiate from the dealer cost up and not from the MSRP down. (the MSRP is the Manufacturer's Suggested Retail Price or the sticker price). Dealer cost is not the same as the factory invoice.

Once you have determined what the dealer price is for the car you want to buy, you can start to negotiate. Some standard dealerships refuse to haggle over the cost of a car. These dealerships may refuse to haggle because they want to add extra fees to the MSRP. Don't be the kind of car buyer who breaks under pressure. If the dealership that you go to doesn't haggle, go to another one that does. You also don't want to be the kind of car buyer who tells the dealer up front that you are going to be making car payments.

This is a guaranteed way for you to get a higher payment fee. Your dealer will offer to take a little bit off of the MSRP. In return, they will then ask you what you are looking to pay each month; this is where the extra money comes in - for them! Tell them it doesn't matter what you are going to pay each month because you are looking for an even division on the cost of the car, not to haggle over the monthly cost.

It's the cost of the car, not the monthly payments, that are more important to you. If a finance manager tries to get you to report your payment method before you have decided upon purchasing the car, don't get sucked into it. When it comes to financing your car, some dealers will offer to give you a better deal if you finance your car through them. I can guarantee that this will not be the case.

Do your research. There are many reputable online auto financing sites available. Finally, don't be an impulse car buyer. Impulse buyers can often get sucked into the "hot" car of the moment and usually get taken for as much as $10,000. A dealer can see this buyer coming from a mile away. Make it clear you are not interested in the latest model 'hot' car because it will not be worth the money next year as the new "hot" car will be out by then.

You don't want to buy a car that is in demand because it is the easiest way for a dealership to mark up the prices. The MSRP always looks low, but it is the extras and monthly payments that will lose you money. Remember the resale value of the car doesn't change no matter how much money you bought the car for. It still depreciates in value.

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