How to negotiate when buying a car

You probably now exactly what car you want, color, options you have it down. Its just about negotiating the best price. So, start by finding out how much your car is worth according to the Kelly Blue Book. You do not want to pay more than the Kelly Blue Books says the car is worth. Ideally take the Kelly Blue Book price and multiply it by .9 this sould be the price range you aim for. In other words, at least 10% off the low Kelly Blue Book Value.

Next, look online for the best price. You can go to www.carsdirect.com

Call the dealerships that sell the type of car you like and ask them for the name of the sales manager and their fax number

Next, send the best price that you found and fax a copy to each of the dealerships and ask them if they can beat the price or offer a better deal, if so you will buy the car. List your requirements in terms of miles, features adn color. DO NOT put your phone number on the fax. Ask them to fax you back. A large majority of dealerships have faxes so they should get back to you. Give them a deadline to respond.

Once you have received your best offer, take two of your friends to the dealership to look at the car. The role of your friends is to say that they do not like the car. Salespeople don't like dealing with a group of people. Have your friends do thier best to "discourage" you from purchasing the car. The sales person will try to tell you why its a good deal, but as much as he or she tries, have your friends equally try to discourage you. Walk away and tell the sales person you need time to think about the purchase. They should come back with an even better offer.