12 things to do before going to the dealership 

     Often people go car shopping completely unprepared and unaware of what they are going to face with when they get to the dealership. They get the add or look through a listing and notice a good deal, or they go to the dealer lot and spot the car they want and go to the dealership to test drive the car, chat with salesman and pay presented figures only to get out as fast as possible with the car they already grew attached to.

     Obviously, this is is not the best way to go about car shopping, unless you have thousands of dollars to spare (or want to become good friends with a used car dealer).

Know your numbers  

     This means that before you even start looking at the cars you're interested in, you have to do market research. Now, some people might cringe when they hear market research, however, in the day and age of internet it is very simple to find out what the fair market value for the car is. Simply go to kbb.com and look up your make/model/year combination along with desired or listed options and get fair market price for given vehicle. Now, keep in mind, that kbb.com is only used as a reference, not the target price. You can (and we have) get much better deal than what KBB says. It might not happen all the time, but you can take steps to increase the chances of dealership caving in to your proposition.

Have financing secured

     This is critically important, because if you leave it up-to the dealership to give you financing, they might give you a better deal on the car, but they WILL make it up with an inflated financing rate. If you haven't done your research and haven't applied to any loans prior to going to the dealership, you will have absolutely no basis for comparison of interest rates, which leaves you in quite vulnerable position. Do you, for example, know what standard interest rate for a car of up-to 5 years old is today? If you don't and you're planning to get a loan at the dealership, you're setting yourself up for hundreds, even thousands of dollars lost in paying for an inflated interest rate.

Get a friend to go with you

     This is rather important step, as having a friend or a relative with you during the negotiation process not only helps you mentally. You have to remember that the salesman has his crew and sales manager to keep him motivated, you have to do the same. Also having a friend or a relative with you gives you the ability to drive to the dealership by leaving your old car at home.

Think twice before deciding on a trade-in option 

     Trading in your car is a complete joke at the dealership. They will give you such low trade-in value for your car that it's literally a few thousand dollars less than what you can sell it for yourself by simply placing an ad in autotrader or cars.com. Unless you absolutely do not want to deal with selling your own car, then trading-in might be your option, however, be prepared to lose thousands of dollars on such deal.

Have plenty of time 

     Negotiating the best deal takes time. Car shopping is not like grocery shopping, because during car shopping an hour or two of negotiations can turn into thousands of dollars in savings. That's like getting paid few hundred to thousands dollars an hour and it sounds like a good deal to us. If the dealer senses you're in a rush to buy, he'll feel the power over you and will be much less reluctant to be flexible on the price.

Do CARFAX VIN check 

     Before you look at the car you want to buy, call the dealership up and get the VIN number. At this point, don't give them your phone number or any other information, since you don't want them to know you're interested in the car BEFORE they accept your terms. Giving them your information gives them the knowledge that you are in fact interested in the car, since you called in advance. Do the VIN number check to make sure the car hasn't been in an accident or flooded and that it isn't a lemon or had history of odometer rollback. Knowing if these things happened with the car you're interested in will save you a lot of headache in the future. Not only you might end up paying a high price for a damaged car, but you will also be stuck with that car and when selling time comes, you will lose a lot of money, since the title history can be checked by anyone and no one is going to pay a normal price for inferior car. CARFAX VIN-check costs 14.95$ for a single car and 24.95$ for unlimited number of cars for a whole month. Sign-up for an unlimited account before you start your car buying process, so that you can check the title history of every car you're interested in.

Do not identify yourself when calling

     Like stated above, when calling to the dealership, do not give them any way to identify you. When you call it's better to be nonchalant about it, like you're just calling to find out general information. If they know you called in before when you go to the dealership, they know you're interested in the car more so than an average Joe who comes to look around cars.

Have other options printed out 

     Before going to the dealership, print out a list of options from other dealerships in the area (can be a different car). This will give you tremendous advantage in negotiations. When the salesman sees you have actual prospects and even get a phone call during the negotiation process from one of the dealerships that are willing to give you an even lower price, you create a situation of scarcity for the salesman, rather than the other way around. He will quickly lose all negotiation power if you have other solid printed out options. This is one of the more powerful negotiation techniques, since it switches the conversational frame around so that you're the one who's in control and YOUR business if valuable.

Take your cell phone with you 

     It will be your tool of fake communication. You will be able to make and receive fake phone calls during the negotiation process from various dealerships and "talking" to a third party as the negotiations continue. You won't actually be talking to anyone, but for gaining the leverage it's a really powerful technique. Salesmen use this all the time, the whole concept of backroom managers is to create a deciding authority, which takes away all responsibility for pricing from the person who's actually presenting the actual numbers. Neat, huh?

Have a bank check prepared 

     For the amount LESS than what you're willing to pay. The trick with this is when you show the actual bank check for the car to salesman, and it's less than what they are asking, it puts them in a compromising position. On one hand, you have the money and you're ready to go, on the other hand it's not what they want. So they will be forced to operate from YOUR frame now, since you're setting the rules now. The price on the check is not intended to be the final price you pay. You will simply use it as a leverage in telling the salesman that this is all you have at first, then proceed with negotiations and inform him that you might come up with another thousand or so from a relative, IF they agree to a price that you want. If not, pull up your options and start "calling" right from the dealer lot and see if salesman caves in.

Print out mechanical checklist 

     This will allow you to inspect the car yourself and find all potential dings and defects you can possibly can, that you will later leverage with salesman.

Have insurance secured 

     Most dealerships require proof of insurance before you can take the car with you. You cannot drive off without it, so it is wise to shop right now to get the best deal by comparing different providers.

Conclusion:

     This checklist is the first step in getting the best deal you want. You wouldn't go to play a game of soccer without a ball, right? Same concept applies here, you have to have tools to play the game of negotiations. Salesmen have plenty of well though-out tools that they use to gain leverage in negotiations. Bringing in your own tools will allow you to not merely be a goalie that has to catch the ball thrown at them, but you can also become a field player yourself. Most salesmen know that if you come prepared that you aren't the one to be messed with. They know that you see right through them and if they believe that you will be able to see through their lies, they will be much more less likely to do so, because they do want to make a sale. This swiftly establishes you in a position of authority in their own world, which is a very powerful step in a negotiation process.