Agreeing on a price for Your Trade-in
If you plan to trade in your car for the new one, announce to the salesperson after the presentation and demo drive that you'd like to get an idea of the value of your car should you decide to trade it in. Candidly admit that you've already shopped it around so that you have a very good idea of what it's worth. Make it clear that you don't want to talk about the price of the new car until you have the appraisal (not the allowance). You want to know what the dealership believes is its fair wholesale value. Undoubtedly, the salesperson will ask what other figures you've gotten. Don't reveal them. Rather, respond with something like: "I'm sure your appraisal will be in the same ball park." If the appraisal does not match the highest figure that you received from the three used-car operations, tell the salesperson that you have a higher offer and that if the used-car department can't do better-don't tell them how much better-you may have to look elsewhere. At this point, the salesperson may suggest that you write up the deal. Indicate that you'll be prepared to deal when the appraisal is competitive with those you've already received.

Appraisal, Not allowance
If the salesperson comes back and talks about how much they are prpared to "allow" you on your trade, be pleasant and remind the salesperson that you did not ask for an allowance, but an appraisal. Your objective here is to eliminate-or at least minimize-dealershipinjected confusion by keeping each element of the transaction as a separate issue.

Negotiating the Deal
Assuming that the dealership raises their offer to an acceptable amount on your trade-in, you can turn your attention to the new car. Tell the salesperson, in a nice way, that you'd like to see if you can make a deal and that you hope the two of you can come to some agreement within the next half hour because you have an appointment at another dealership. (Salespeople like to use a time-pressure ploy on their customers. This is one way to turn it back on them.)

Also, inform the salesperson that if you aren't satisfied with the deal, you will shop other dealerships, and the one with the best price on the new car and the best offer on the used car will get your business. Said with conviction, this will strike fear into the salesperson's heart. You will be in control.Maintain that control by telling the salesperson that you have carefully calculated the actual price of the new car and that you are prepared to offer the dealership a price that reflects a profit of X. (If you use the financial work sheet as we suggested, you should determine that figure before you enter the dealership.) As a rule of thumb you might begin with a profit margin that amounts to about 2 percent over the invoice-dealer's cost-and be prepared to raise your offer once¬and only once-to a figure that amounts to 3 percent.

The salesperson will either show great pain and suggest that management won't accept your offer or agree to write up the order and rake it in to see if it can be approved. If the salesperson balks, insist 7,hat your offer be taken to management and suggest that you will leave if it is not. Keep in mind that in most dealerships, management ioes not want a buyer to walk before they've had a chance to counter an offer any offer.

Writing the Buyer’s Order
When the salesperson begins to write up the buyer's order, make sure that the difference between your trade-in and the negotiated price of your car matches with the one on your work sheet. Make sure that -hey show you the cash difference before they add in all the additional charges. Your objective is to prevent the salesperson from trying to add some confusion in hopes of getting a few more dollars. By isolating -lie trade-in appraisal, the total amount to be paid, and the total imount of additional charges, the only opportunity for them to extract i few dollars is via the back end of the deal.

Once the buyer's order has been written up, the salesperson will -sk you to okay it . The salesperson will ask for a deposit so that management knows you're serious. Tell them thatyou'll sign a buyer's order confirming your offer, but that you will not give them a deposit until the deal has been approved. Mention that the fact you've just spent the last hour or so in the dealership should be proof enough of your seriousness.

The `Sincerity"Deposit
some dealerships believe that unless you give them a deposit, you're not ready to buy. They know that the psychological commitment that goes with writing a check works in their favor and that if they can get -you to write one check, you're primed to write another. They may tell you that the deposit is their standard operating procedure and that it will show management your offer is sincere. In fact, it's just another way of keeping you in the dealership while they "work you." Never give a dealership a deposit until they have approved your deal. Also, before you sign the check, be sure you know exactly the final amount you'll be paying and that the amount is in writing.

A Message to Management
As the salesperson gets up to take your offer to management, deliver one last message. A message which might go as follows:

"Please make it clear to your management that I am not interested in getting involved in a series of offers and counteroffers. I would like to buy here. I want you to have mg business. However, if necessary, I will continue to shop until I make `my' deal. "

And then say no more. Your message will most certainly be delivered