By now you should be convinced that the two are inseparable. If there is a trade involved there is even more negotiating to be done.

More on this in a bit.

And if you decide to use the dealership’s finance department there is even more negotiating you should do there as well.

Think of both the trade-in side and the financing side as businesses within the dealership. Each of these departments is responsible for their own bottom line and own profit margins, so you should treat each of these areas as a separate transaction in the process of buying your car.

• You’ve done all your homework on negotiating and car buying. I cannot over emphasize the importance of going through the pre buying researching and gathering of information. Knowledge is indeed power. Knowledge will give you confidence heading into the negotiations. Knowledge can and will… save you thousands of dollars. Here’s your check list.
• Know the car that you want and can afford. Wanting and affording can be two entirely different realities. Don’t waste everyone’s time (yours included) and hard work and emotions by trying to purchase a car you cannot afford.
• Know the MSRP (manufacturer’s suggested retail price.
• Know the dealer’s cost.
• You’ve investigated the factory to dealer and factory to customer rebates.
• If you have a choice between a cash rebate or forfeiting the cash rebate to buy down the interest rate, run the numbers and find out which actually nets you the best result.
• Check with your bank or lending institution first to get an in your pocket interest rate. Know what your monthly payments will be for a given interest rate for a given amount of time. Very important to know.
• Call or visit several dealers (better to visit during non business hours) to determine if the dealer has the car you want to look at on their lot. Remember dealers will be more apt to negotiate on a car that helps them move their inventory.
• If you are going to trade-in your car, make sure you have checked the various car books to get an idea of the wholesale value of your trade-in.
• Check local publications and newspapers to make sure you are looking at the most accurate market numbers.
• Remember, you’ll be looking at wholesale numbers not retail. If you want to command numbers closer to retail, you should sell the car yourself.
• You have called around and gotten competitive insurance rates.
• And one last note… above all you’ll remain patient, cool, calm, and unemotional throughout the process.

A look at some car buying negotiating details next…