For car buyers..

For Car Buyers: First, do your homework. Learn all you can about dealers do because they can quickly erase any discounts or other savings that you think you're getting. Car dealers spend millions of dollars training their salespeople to get more money out of customers, and if you don't know the tricks they use, you could be overcharged by thousands of dollars. Find out the dealer's real cost on the car (it's typically less than invoice) and the prices that smart shoppers are paying for that car, then research any other items you might want (loans, extended warranties, car alarms, etc.). Shop around for competitive auto loan (or lease) rates at banks, credit unions and lenders on the Web. When you find a great interest rate, get pre-approved at that lender before you start negotiating with dealers. If a dealer can beat the rate you found, let him finance the car -- on a "simple interest" contract only. Otherwise, stick with your pre-approved loan. And don't forget to shop around for insurance before you buy that new or used car, or you may be in for a shock. To save you time and money, we've listed the best places for you to get free quotes on new or used cars, auto loans, car insurance, extended warranties and more. (Keep reading.)
When your homework is done and you're ready to buy, you start the negotiating process -- where dealers quote prices and you make counter-offers. If you've done your homework properly, this process should result in less haggling -- and lower prices. To make dealers compete (and drive the price down), use the Internet to get at least 4-5 price quotes before you start negotiating with any dealers. When you get to the contract stage, make sure the dealer doesn't slip any hidden charges into your loan or lease. (This is known as "payment packing.") To avoid this common rip-off, calculate your own monthly payments first. Finally, always negotiate the price of the car, not the monthly payment