A Winning Strategy for New Car Buyers

It's a common mistake to focus only on the monthly payment when negotiating a new car sale. It's an easy trap to fall into, according to the Consumer Advice Editor for Edmunds.com. Mr. Phil Reed, who worked as an undercover new car salesman at two dealerships and tells about his experiences on the website, says salespeople will ask, "What's a comfortable range for a monthly car payment for you?" Whatever amount you quote, they will start at the higher number and go up from there. The salespeople are not basing the payment on anything real at this point in the negotiations.

Mr. Reed says the best strategy is to negotiate the price of the car, NOT the monthly payment. You may want to do your homework before going to a dealership by using Edmunds.com, which lists the true market value for new cars and has a payment calculator. You may also want to check out Edmunds' new book, Strategies for Smart Car Buyers.