After the research you've studied and the vehicles you've scrutinized, it is now time to decide whether you want to purchase this car or not.

If the answer is “no”, or if you are still uncertain, don’t feel pressured by the dealer to make a rash decision. Retrieve your keys and leave the lot as quickly as possible Go elsewhere, either to inspect other vehicles, or to decide what to do. Whatever you do, do not do your deliberating in the salesperson's cubicle.

NEGOTIATIONS

If the answer is “Yes,” remember to stick to your order of operations and concentrate on earning the best price for your trade-in. Why? Most car buyers use their trade-in money as the down payment for their new purchase. Getting the best trade-in price for your vehicle is critical.

The standard tactic of most dealers is to allow you reasonable prices on their new cars but to undervalue trade-ins. Don’t be misled by an amazing price for your new car alone. Your first order of business is to get the best price for your used car. You know what it is worth from your homework.

Here is the way to get the price you deserve:

First, examine your attitude. You must appear colder, more detached and more irritable than during the test drive. Allow yourself to be lured into the salesperson’s office to discuss a possible car purchase. Be a little reluctant, and only go at his insistence. During the test drive you should have been a little more mild-mannered and a lot less knowledgeable than you will appear now. It is always best to first appear naïve to elude the sales staff, who makes hasty judgments about their customers and gradually appear to be tougher and more knowledgeable as the negotiations progress.

Keep in mind that the salesperson is trained to classify car buyers in many ways. One classification is the “trade-in buyer.” This type of customer is concerned primarily with getting a good price for his trade-in. Once this is established, he is less concerned about car payments, new car price, or anything else. Therefore, the dealer gives him a good price for his trade-in and makes money by dealing hard on the other parts of the car transaction.

Your goal at this point in the deal is to convince the salesperson that you are a "trade-in buyer." Later you will convince him that you are a “new-car buyer.” A "new-car buyer" is one who is primarily interested in the price of the new car and does not concentrate on the trade-in price or any other issue. Your goal is to be a trade-in buyer when it suits you, then to switch to a new-car buyer later in the deal. This will give you the advantage of getting both a high trade-in price and a low new-car purchase price.

Once you have shifted your stance, mention again that you intend to purchase a car today, but that you need the best price for your trade-in before you begin to discuss the new car. Assure your salesperson that if this point is handled to your satisfaction, everything else will go smoothly. The salesperson hopes to make his profit on the new car purchase, the financing and the financing extras. Allow him to think this will happen now.

Always get the dealer’s price on your trade-in first. Don’t reveal a definite figure of what you want. It is a general principle of negotiation that the person who mentions price first loses. If it's possible, send the salesperson back to his superior several times by complaining that their price for your trade-in is not acceptable and stressing how crucial the trade-in price is to the deal. Your goal is to be viewed as a trade-in buyer. Ask them why, since you are so intent on purchasing their vehicle, they won’t let you proceed.

Make sure the details of your trade-in are handy to support your claim about your trade-in's worth. You should carry details such as the extra features, recent repairs, etc. Your strongest negotiating position at this point is one of a trade-in buyer who adores the old car and is a little irrational about it.

If used car prices are high, remind the salesperson that you are aware of that. Remind the dealer of the market, your car's popularity and how easily and quickly it would sell, should the dealer accept it as a trade-in. Tell the salesperson you want the dealership’s best figure.

After you are given the dealer’s first price (which will most certainly be low and unsatisfactory), try a new technique. Simply assert that the dealer will have to do better than that offer. Send the salesperson back frequently to his superior for a better price. Think of it as exercise. It’s beneficial for him and beneficial for you. A salesperson should make five to ten trips back and forth between you and his manager for a standard car deal. If the price comes back low, ask to speak with the salesperson’s manager or the person who evaluated the vehicle. Hint that if you are treated well, you may return for your next vehicle as well. Stick to the topic of the used-car price; don’t discuss the new-car price yet. Don't waiver from the price you have in mind for your trade-in.

You hopefully arrived at the dealership late in the day – preferably one to two hours before closing. You will most likely stay for several hours past closing. Let the negotiations crawl hours past the hour the salesperson is expected home for dinner. You want to force him to try to speed up negotiations by sacrificing concessions. Wear him out. Actually, salespeople expect you to be unreasonable when defending your trade-in. Don’t disappoint them. First shoot for the Blue Book wholesale for your car, and then let your price slip below wholesale. If your car is a wreck, you should expect a much lower price. If it has low mileage, you can move closer to wholesale. The ideal middle ground price is around $300 less than Blue Book wholesale. Try your best to reach this, but be prepared to accept less.

Demand a firm price for your trade-in. Do not settle for an allowance - a promise for a certain amount for your trade-in, but only if you purchase a particular upscale model at full price. An allowance can be utterly confusing; you will not know what price you received for your trade-in or what you paid for the new car. Make it clear that you will not accept an allowance but will proceed with the transaction only after a firm price for your trade-in has been agreed upon.