Compare dealer costs with window stickers.
Find updated price lists to compare dealer costs with window sticker prices. You’ll know how much bargaining room you have on the basic car and individual options on it. Negotiations often have a vocabulary of their own. Here are some terms you may hear when you’re talking price with a salesperson.

• Invoice Price — the manufacturer’s initial charge to the dealer. This price usually is higher than the dealer’s final cost because dealers receive rebates, allowances, discounts and incentive awards. Generally, the invoice price should include a charge for freight/destination and delivery. If you buy a car based on the invoice price — at invoice, $100 below invoice, 2 percent above invoice, etc. — and freight is already included, make sure freight isn’t added again to the sales contract.
• Base Price — the cost of the car without options, but including standard equipment and factory warranty. This price is printed on the Manufacturer’s Suggested Retail Price.
• Manufacturer’s Suggested Retail Price (MSRP) — also known as the Monroney sticker, this shows the base price, the suggested retail price of manufacturer-installed options, the manufacturer’s transportation charge and the fuel economy. Federal law requires this sticker to be affixed to the car window, and only the purchaser can remove it.
• Dealer Sticker Price — usually printed on a supplemental sticker, this is the Monroney sticker price plus the suggested retail price of dealer-installed options, such as additional dealer markup (ADM) or additional dealer profit (ADP), dealer preparation and undercoating.

Get a dealer quote — in writing.
Agree with the dealership that the written quote is firm. If the dealer refuses to give a written quote, find out why.

Shop at more than one dealership.
Check out several dealerships and their reliability with the local Better Business Bureau.

Negotiate separately.
Consider questions about financing, service contracts, trade-ins or other extras after you have settled on a price.

If you’re uncomfortable negotiating, consider a car buying service.
Negotiating is an understood factor of buying a car. If you’re unsure of your negotiating skills, a car-buying service can step in and work on your behalf.

Shop around for financing, and compare the offers.
Contact lenders directly — don’t just let the dealership find financing for you. Compare the financing offers you receive with what the dealer offers you. Offers vary, so shop around for the best deal, comparing the annual percentage rate (APR) and the length of the loan. When negotiating to finance a car, be wary of focusing only on the monthly payment. The total amount you will pay depends on the price of the car you negotiate, the APR and the length of the loan.

Sometimes, dealers offer very low financing rates for specific cars or models, but they may not be willing to negotiate on the price of these cars. To qualify for the special rates, you may be required to make a large down payment. Sometimes it’s more affordable to pay higher financing charges on a car that is lower in price or to buy a car that requires a smaller down payment.

6Shop around for auto insurance before you buy a car.
Make sure you understand the cost of insurance before you buy a new car. Calculate how your insurance will change with other car scenarios — depending on your insurance company, you may be able to do this online or through your insurance agent/broker.