Get the best price on a new car

We all know that queasy feeling, deep down in your stomach: "Ugh, I gotta go talk to a car dealer..." The salesperson, to be fair, is probably going to be pretty nice, but the overwhelming fear of getting screwed ruins the experience. Is the price even close to fair? Can I get financed without losing my shirt or my dignity?

You can walk on to a car lot and actually keep your dignity, and a fair amount of your own money, just by coming prepared. Some of it is attitude -- that salesperson needs you, not the other way around -- but mostly it's doing the homework first.

THE RULES
Price shop your new car purchase in advance
Finding the manufacturer's suggested price on a new car is the easy part. Go to the car company's Web site, and there it is. But you know for a fact that this is an ideal, not the reality. Hit the various car sites next, like Vehix and Edmunds. They will help you find the "real" price that people are paying right now. If the car is in high demand, this will be close to MSRP, but usually it's a few thousand less, easy. Run the numbers on exactly the model and features you want on a few comparison sites, get a consensus figure, and write it down in big, black ink. This is your number. It is not what you will pay, but it is the ceiling. Do not go walk on car lots yet.

Call up a car buying service and get their price
Generally, the local auto club or your friendly neighborhood credit union will offer a car-buying service. Often, the relationships are with only some local dealers, but typically they have contacts with the biggest of them. Go through their service and you will be offered the car at a "no haggle" price. It really is "no haggle," but you will also find that their number will be at or well below your consensus number. If you can't get into a car buying service, consider working through the dealer's Internet sales division. They are often empowered to sell at the buying service price. In this case, send e-mails out to all the dealers in your area specifying exactly what you want, down to the cup holders, and then compare prices against your consensus number. Still no walking the lots.

Closing the deal on your new car purchase
Car dealers love to sell financing. First, the salesperson gets special incentives to sell financing, sometimes more than for selling the car. Invariably, too, the dealer will finance you and then immediately sell your loan to another bank. The difference between what you get in terms of interest rate and what they get is instant profit, and another little commission for the sales person. Avoid this. Get your financing well in advance by applying via a loan comparison site like LendingTree or E-Loan, and get figures from your local bank or credit union, too. Now, by this time you know three things backwards and forwards: What car you want, what price makes sense, and how much the loan will cost, including the expected monthly payment. Head to the lot, look the salesperson in the eye, and ask for your car. Let him talk. Let him babble. Let him sell, sell, sell. The less you say, the more the panic will set in. Absolutely, and this is crucial, he makes the price offer, not you. If it's a penny over your consensus figure, walk. Don't explain, walk. The salesperson knows two things perfectly well, 1) What the price should be, and 2) That if he lets you walk off the lot, you never come back. Now you are in control, 100%. Hit two, three, even four dealers. Take a week on this. And when they start talking financing, say, Thanks, but I got it all set. More panic. Again, they make the offer not you. If it's not a better deal, say so. They'll come down.