Are you finally ready to purchase that new car? Whether it’s brand new off the lot or a gently used, new to you car, you can't help get excited at the prospect of a new set of wheels. Though it’s hard to reign in the enthusiasm, it's important to do your research to before you hit the dealerships.

Being armed with some solid information, good common sense and a few well known tips, you can drive away feeling good knowing you were able to get the best deal. When it comes to buying a car everyone is looking for the win-win situation and yes, it can be done.

Planning Your Purchase

The first rule of thumb is going in knowing that both you and the dealer are working towards the best deal for both parties. Though the bottom line is increased revenue for the dealership, pleasing the customer is often given the same priority. With these big ticket items, word of mouth and repeat business is the lively hood of any business and this can be used in your bargaining.

Here are a few tips to keep in mind when you start your search:

1. One of the best times to purchase your vehicle is at the Christmas Holiday time.The end of the year often has dealerships struggling to make their yearly quotas. You may find salespeople offering discounts and incentives in order to bring in sales.

2. Not to be confused with the calendar year end, most dealerships have their fiscal year end from July to October. This is when their inventory is being cleared out to make room for the new models. There is always a push to sell last years stock on both new and used vehicles so if there is something you like… make an offer.

3. With the internet you can take hands on approach by doing your own research on what is available in your city, state, or province. Print all the information you find, bring it to your dealership and see what they can do to accommodate you or match the prices.With quotes from competitors in black and white, you have leverage when it comes to your negotiating power.

4. If you have it available, bring a copy of your credit score with you. It may lower your interest rates on your car loan and it also guards you against any potential financing scams. This may happen where you are told your financing "fell through" and you are required to pay a higher interest rate on the loan than originally quoted.Your credit report is available for roughly $15.00 and it's worth it.

5. If you are trading another vehicle in that has money owing, be sure to have the dealership state in the new contract they will be responsible for paying the loan off within a certain time frame. If not, you may be held responsible for monthly payments and late payment fees on your old vehicle until the dealership finalizes their own paperwork, which may take several weeks.

6. Be aware that if a dealership does not have the vehicle with the options you want they will attempt to locate it from another dealer. When this happens a deposit is usually required. Negotiate for the smallest amount of deposit available and if possible, use your credit card. There are instances where the dealer will attempt to charge you more when the vehicle comes in claiming a price increase. By paying with your credit card, you have the option of canceling the sale if this becomes an issue for you. You can do the same with a check; however it will take longer for the return of your deposit.

7. You should never appear desperate when you are buying a car, even if you are. You could be taken advantage of and pay far more than necessary. Rent a vehicle for a week or two while you are searching for the best deal. It may cost initially, but you will save in the long run.

The Bottom Line

There are many reputable dealerships and just as many reputable salespeople that are happy to do business with informed customers armed with knowledge of what they want and the price they are willing to pay.

There are also many unethical people in the business as well. Never be shy to walk away from anyone who tries to bowl you over with nonsensical facts and figures. You are the paying customer and it's in the dealerships best interest to make you happy.