You are looking to get a good deal. The dealer is looking to earn a good profit. Is there some way that you and the dealer can see eye to eye on the price of a new car? The answer is “Yes,” if you play your cards right. Dealers take on hagglers on a daily basis and can size up a potential car buyer in an instant, so you need an airtight negotiation strategy to get them to agree to your price. The good news is that no dealer would like to see a prospect walk out without a sales contract in hand. Your position as a prospective car buyer gives you good leverage when negotiating the price of a new car. Here are a few things you can do to boost your strategic advantage in car price negotiations:

Do preliminary research. Unprepared buyers make easy targets for negotiation-savvy dealers. Before stepping into a showroom, find out everything you can about your dream vehicle, particularly its invoice price, the prices of your desired options, and any regional price incentives. Don’t confine yourself to a single vehicle model. Comparable vehicles may offer better safety features, fuel economy, or more options at a lower price. Read reviews from auto magazines and browse motoring-related websites to become a more informed car buyer.

Arrange financing before visiting a dealership. To many dealers, a prospective buyer with a pre-approved auto loan is a sale waiting to happen. Pre-arranging financing before walking into a dealership shows how serious you are about purchasing a new car. Moreover, getting pre-approved on a loan allows you to concentrate on the main point of the bargaining process: the price of the car. You could also analyze how your pre-approved loan measures up with the dealer loan, if there is any, and choose the one that best fits your financial capacity.

Use the invoice price as basis for your opening offer. Ideally, you’ll want to pay as close to the vehicle’s invoice price as possible.  But the invoice price does not tell the whole story about the dealer’s costs. Additionally, the selling price of a car is influenced by several factors, most notably demand and local market conditions. Low-balling will not get you anywhere if the car you are bargaining for is in high demand. Instead, set a realistic price range between the invoice price and the manufacturer’s suggested retail price. You should be able to comfortably move up or down within this price range.

Negotiate one item at a time. Dealers might try to mix up different aspects of the negotiation in an attempt to make an offer seem attractive. For instance, the dealer might yield to your price for the new car but lowball you on the trade-in or charge a higher interest rate on the dealer loan. Negotiate one aspect of the deal at the time to avoid paying more than you want to. Analyze each part of the deal separately and keep your eye on the total cost of the purchase.

Establish the maximum price you would be willing to pay and stick to it. Determine ahead of time how high you would be willing to go for the car of your dreams. The whole point of negotiating is to acquire your dream car without breaking the bank. Don’t hesitate to say “No” once you’ve crossed this maximum price limit. Setting your maximum price will also prevent you from purchasing unnecessary options on impulse.

Request a price quote from more than one dealer. Competition is the free economy’s greatest gift to consumers. Make the most out of this gift by requesting a price quote from several dealers. You don’t even have to set foot in a showroom to accomplish this; you may get a price quote by phone, fax, or e-mail. Compare prices, deals, and incentives from several dealers and choose the one that gives you the biggest bang for your buck.