Next, start your car search online. You can quickly narrow your choices by reading new car reviews, safety tips and pricing. Print out pertinent information to keep in your car buying folder.

less you plan on paying with cash, it's smart to get pre-approved for financing.  It is important to know what you can afford ahead of time.  A general rule of thumb is your total monthly car payments shouldn't surpass 20 percent of your monthly take-home pay.

By now, you should have your new car "short list". Save time and gas by finding your new car information online.  Research each model meticulously.

Now that you've researched all the cars on your short list, you can venture to the dealerships with confidence. It's a good idea to make initial contact by phone. This phone call also allows you to get a feel for the atmosphere of the dealership. Keep in mind that the goal is to test drive the cars back to back. This can expose minor or major differences, which will lead to a more informed buying decision. Make sure to let the salesperson know you are still test driving other cars. Before setting off for the test drive, walk around the car, taking note of how everything looks. Get into the car and examine the inferior features. Climb into the back seat to make sure it's comfortable and roomy. In the test drive, be sure to observe how well the car handles in a variety of driving conditions. Things to keep in mind:

Will you sell it yourself or trade it in? You'll need to know before you visit the dealership. You may make more money if you sell the car yourself. Before making your decision, read our tips on how to sell your car. When you're ready to sell your car, you can quickly and easily place an ad right here on uscarland.com. Post photos, provide a detailed description and edit your ad later if necessary. If you prefer the convenience of letting the dealer take the car off your hands, then trade it in. Either way, it's a good idea to tell the salesperson that you're not sure what you're going to do with your current car. Be sure to focus on negotiating a fair price on the new car before you address questions about trade-in, financing or down payments. Before you sell your car or trade it in, find out what it's worth. Check out our car values page to make a decision about your asking price. Remember, what you get from trade-in will likely be lower.

• Shop around for the lowest rate. In the end, you may choose dealer-arranged financing, but comparing loan rates ensures you get the best deal and gives you room to negotiate.
• Start with your bank or credit union, and then go online. Many websites offer loan information and list the average rates. Our loan resource, Capital One Auto Financecan®, respond to your online application within 15 minutes and send you a Blank Check® as soon as the next day.

• Put as much cash down as possible. Starting with a lower principal balance will help to minimize your monthly payments more than a good rate.
• Search for a cash rebate to decrease that principal balance. Combine it with a low-interest rate and you will save money.
• When it comes to special incentives, be prepared with other alternatives. Many buyers do not qualify for the zero-percent rate when it’s available. Or, the loan term is so short that monthly payments are way too high.

The sticker price is not the only cost to consider when buying a new car. Before you settle on an automobile, add up all of the long-term costs of ownership.

These include:

• Depreciation
• Insurance
• DMV fees
• Sales tax
• Maintenance and repairs
• Fuel costs

Depreciation is a very important factor to consider in the car’s overall cost. Your new car loses some of its value the minute you drive it off the lot. Refer to our car values page to get an idea of what its resale value will be a few years down the line.

Sticker prices posted in the windows of new cars represent the MSRP (manufacturer’s suggested retail price). This advertised base price excludes options, destination charges and other fees. However, the sticker total should include all of these fees.

Before you visit the dealership, find out the car’s invoice price. The invoice price comes from the manufacturer and is an ideal starting point in your negotiation. Get a vehicle valuation (visit our Search Car With Price page) to find out that number. You can also ask the salesperson.

Now that you're ready to negotiate, here are a few tips:

• Don’t be reluctant to make a low offer based on the invoice price.
• Once you name your offer, don’t speak until the seller responds. Silence is very effective in the negotiation process.
• Be firm and stand your ground. Don’t budge unless you absolutely have to.
• If you are willing to move up from your first offer, do so in small increments.
• When you have hit your maximum spending limit, tell the seller that this is your final offer and that you can’t go any higher.
• Don’t be afraid to walk away. Hopefully, you won't have to.
• Be aware, however, that if the new car you're after is in short supply, you may have to pay the full sticker price.
• Don’t let the salesperson make you feel guilty or insinuate that you are eating into the dealer’s profit. Dealers commonly receive what is known as holdback—a percentage of the MSRP from the manufacturer on all cars. Always negotiate for the best possible deal.

If high-pressure bargaining doesn’t appeal to you, shop around for price quotes. Stop by or call several dealerships, and tell the salesperson what model you wish to purchase, including the options you want. Request a best offer based on the invoice price.

Once you get several quotes, visit the salesperson you feel most comfortable with. Give the lowest quote you received and ask the salesperson to match it.

The dealer may not have your car model with the exact options you want and in the color you like. At this point, you can special-order the car, have one transferred from another dealer, or settle for a model off the lot that is close to what you’re looking for.

The more flexible you are, the wider range of choices you'll find available and the better bargaining power you'll have. Usually, options come as part of a package the dealer ordered. Compromising on options and color will get you a better deal.

Make a deal on the purchase price of the new car before you begin discussing trade-in, financing or leasing. The same goes with revealing what you can afford to pay monthly. The salesperson can easily juggle the figures by offering a great deal on one end while recouping his loss on the other.