Everyone wants a good deal on a new car. There is some information you should have before you enter the dealership this article is going to tell you what information that is and how to use it to get a deal.

Things You'll Need:

• Access to the internet

• Step 1

  Know your credit score, use this to determine what interest rates you qualify for, call around for rates to find this out.

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  Step 2

  Determine what payment fits in to your budget and what you can afford as an absolute maximum payment. Once you know your payment figure out the maximum amount you can finance (simple formula is $20 of payment for every $1000 financed over 60 months i.e. $10000 is about $200 a month over 60 months). You can fine tune it using the interest rate received in step one using online payment calculators.

• Step 3

  Once you know what rate, what payment and what price range you need to be in, you can research cars that are in your range. Make sure to know what incentives there are (i.e. rebates, low interest rates and promotional offers). When you decided on a car figure out what you should be paying for the car. There are "back end" monies available to dealers to help them make deals, but these are generally considered confidential.

• Step 4

  Now you know how much you want to pay for the car its time to find the one you want. Once you've found the one you want its time to negotiate price. Important thing to know is not to disclose your target price upfront till you're close and feel that it will be stretch to get there. Once you feel you have the best price, leave and go to another dealership ask them to beat the price you have. At this point you can choose which dealership you prefer to work with. If you choose the first one go back and get them to beat or meet the better price.

• Step 5

  After you have reached the best price tell them you have a trade (but only if you really do!). Make sure to know what your trade is worth, use Kelly Blue Book (www.kbb.com). Make sure to be realistic when deciding the condition it is in. Be understanding that while you may receive less for your trade because you will probably get actual value, instead of getting actual value plus discount.