by Victoria de Martigny

Created on: March 16, 2007   Last Updated: November 07, 2008

When buying a new car, as in any negotiation, "Knowledge is power". In order to successfully negotiate a great deal on your new car, let me share with you the key pieces of information to arm yourself with before you walk into the dealership, where to find that information and how to use it to your advantage:

(1) KNOW WHAT YOU WANT

Determine which type of vehicle best suits your lifestyle, your needs and your budget. You should consider things like interior design, fuel economy, reliability, safety rating and even insurance costs. Then use the Internet to compare different makes and models to find the right fit for you including what options you want. A great resource for this is www.nadaguides.com, which lets you compare pricing, powertrain, dimensions and chassis information for up to 4 vehicles, side by side. Once you've narrowed your search, check the local Saturday paper to scope out the deals being advertised in your city. There are usually multiple dealerships selling the same brand of vehicle, and they will all have different prices, so it will help in your negotiations if you know what the market price is for the car you want.

(2) KNOW YOUR TRADE-IN VALUE

If you want to trade in your current vehicle, make sure you know what it's worth. You can start with the Kelly Blue Book trade-in value, a standard that most people are familiar with, by answering a few questions about the condition of your car at www.kbb.com. Once you have a starting point, if you know a mechanic you can trust, you may want to get a second opinion. Since this person will not be involved in the sale of your used car, you can be honest about any flaws, accident damage or strange noises that you hear. Your mechanic can give you some valuable insight into how those defects may affect your trade-in value. Remember that most dealerships will do an inspection on your vehicle before they give you a final price, so it's best to aware of what they may find.

(3) KNOW THE TIMING

In the world of sales, there are always optimal times to buy. You've probably seen or heard car commercials for "Year-end Blowouts" that lure buyers with low financing rates, cash back, free options or even gas coupons. The reason for this is twofold: First, car companies have a budget and a quota and come the end of the year, they need to hit those numbers. As a result, the sales people and management at the dealership are more motivated to sell. Second, the new models will be arriving in January or February, so the dealers

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