If you are wondering how to buy a car from a dealership, then you should know that the art of negotiation is your best friend. Whether you're talking to a new car dealer or a used car dealer, they are always happy to see new customers. That's because they hope to talk you into a sale that will leave them with a fat commission check. But you need to be ready before you walk onto that lot, or you might be pressured into buying a lemon.

Do Your Research
Before you visit car dealers, you must know what you want. Make a list of the essential features you want in your car. Do you want an automatic or manual transmission? How many doors? Plenty of room in the back? Power steering and power windows are pretty standard, but what about useful add-ons such as GPS navigation and in-car DVD players so the children can watch movies on those long interstate trips? It's also worth checking what's included in the warranty and, more important, what's excluded from it. Some dealerships also throw in a maintenance package, and you can bring the car in for oil changes and tune-ups.

It's easy to find most of this information on a car comparison site. Not only can you compare features, but you can also get guide prices for new and used versions of most models. This will give you a starting point when you're ready to negotiate. If you're going to buy a used car, then you can also investigate users' reviews of the cars. Some of these include potential problems that affect particular models.

Determine Your Price Range
Once you have done your research and know the model and price of the car you want, you are almost ready to talk to a car dealer. The final consideration before you start your negotiations is how you are going to pay for it. If you are buying a new car, then there may be rebates and incentives that will drive the price down. From your research, you will already know what your car will be worth when you're ready to sell it. Although the value of a car drops as soon as you drive it from the lot, some models hold their value better than others, which is a big consideration if you plan to keep the car for a while.

Get a Fair Deal From the Dealership
These days, you can do most of your negotiating online, but, if you prefer to buy a car face to face, then there are a couple of things you should do before you head to the car lot. First, make sure you know your credit score. That will tell you whether you can qualify for a good deal on car finance or not. Some dealers may tell you that your credit score is worse than it is so that you accept any deal.

Second, beware of the car finance deals offered by car dealers. They may be at a high interest rate. Whether your credit is good or bad, it will be better to source finance for car purchases separately. That way you can be sure to get the best deal on finance, while you concentrate on getting the best price from the dealer.

Start Negotiating
Now it's time to put your negotiating hat on, and this is where the research that you have done will pay off. The price of a new car is made up of several slices. Dealers often get a quarterly rebate from suppliers and may also get incentives for particular models or quantities. It's important to work out how much a dealer can afford to knock off when you begin to negotiate.

You may also be able to reduce the price by trading in your old car. However, it's worth knowing that you will get the best price for your car if you arrange a private sale. Used car dealers buy your car at the trade value and sell it at the retail value to make a profit. If you have a good idea of what that value is, you may be able to get a better price for the trade.