How To Get the Best Deal on a New Car

Factor in the salesperson’s commission. A fair markup is four to six percent over the dealer cost. This total should be your target number when you head to the dealership to negotiate.

If you’re financing the car, arrange your own plan with a bank before you go to the showroom. This takes a big overcharge weapon out of the dealer’s hands.

Beat the salesperson and their manager at their “good cop, bad cop” game (you know, the salesperson considers offering you a sweet deal, then tells you his manager won’t approve it) by bringing your own “bad cop,” who won’t let emotions cloud their judgment.

Start by telling the salesperson what you can pay for a car — not the model you want. Most shoppers tell the salesperson the car they want and then discuss price, but consumer studies show doing the reverse gets you a better deal.

Tell the salesperson you’re willing to walk away; they’re less likely to negotiate if they know you have your heart set on the car.

If the dealer is factory-ordering your car, pay the lowest deposit you can — usually about $500 —and put it on your credit card, where you will be able to dispute the charge should the dealer try to charge you extra when the car is delivered.