When you are in the market for a vehicle you may be in for a wild ride. If you begin without knowing the rules of engagement, you are setting yourself up for failure. Car salesmen thrive on purchases made by uninformed and unprepared buyers.

So first off what kind of car are you looking for? Dealers mark up new vehicles by large amounts and then offer rebates and cut prices to make you feel like you have really gotten away with a deal. Think about it, they are not going to lose money on a sell. If they are offering you large rebates and all kinds of incentives, it's because they can afford to! How long could a dealership lose money and stay in business. Still if you know that almost everything is negotiable, you can do well on a new purchase. Ask for everything and have them throw in as much as you can get away with. Take advantage of all the incentives and ask for more. You can also shop around and make the dealers compete with each other.

When shopping for a used car, you have to know what you are getting into. I recommend that you move slowly on a used car purchase. Research, research, research. You must know how much the vehicle you are looking at is worth. Salesmen are there to make money. Don't get upset when they try and sell you a car for much more than it's worth. You have to be willing to walk away if they will not meet your price. If you can control your emotions and not get buying fever then you have power to negotiate. I don't recommend working out a price and I don't recommend meeting them in the middle. I say if they will not meet your price then walk away! There are other deals out there and if you want to be in control, you have to be willing to walk away from a purchase that is not what you want. Think about Carmax, they have a no hassle price. I am suggesting that you have your own no hassle price and if they will not meet you, then go down the road!

When you are engaged in negotiations with a salesman, let him talk himself down on the price. Instead of telling him the price you are willing to pay, just tell him that the price he is quoting is not low enough. Never tell him your bottom dollar until you're sure he's not going to meet it. Then and only then, tip your hand and if he won't meet you, walk away!

If you are financing the vehicle, fight on every detail. They will try and sell you everything and just throw it in the note. Don't allow the finance guy to talk you into all of the extras unless they are willing to add them in for free! As a matter of fact, push them to add these extras in without charge.

One other suggestion, and I know it's not popular today, is to save your money and pay cash. Cash is an incredible tool when it comes to buying power. For some reason people will do incredible things when they are staring at a stack of $100 bills!

The most important thing to know is everything is negotiable! The price of the car is negotiable. If you are doing a trade in, the price they pay you for your vehicle is negotiable. The interest rate is definitely negotiable. Extras are negotiable. Question everything and make the salesman work for you.

Learn more about this author, Jeremy Hair.
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