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Get competing price quotes

One of the most effective ways to get a low price is to have dealers compete for your business. This can be done by e-mailing or calling several in your area or in neighboring towns. Tell them the exact model, trim level, and options you want and ask for their lowest out-the-door price. The more quotes you get, the better. Make sure you’ve done a thorough test drive before initiating negotiations.

You could also go to car-buying websites and submit a request for a dealer quote. But be prepared to be on the contact list for several dealers for a while. Consumer Reports provides free dealer quotes through its Build & Buy service, which is available to subscribers of Consumer Reports magazine or website, ShopSmart subscribers, and buyers of CR’s New Car Price Reports. Benefits with this are that you remain anonymous until you choose a dealer to work with and dealers in the network must maintain a high level of customer satisfaction. Of course, you aren’t obligated to buy a car.

Focus on the price. Don’t discuss trade-in or financing terms at this point. Tell them you are just looking for a competitive price on a new car and will work with the dealer that treats you the best. You can tell them you’d be willing to put down a credit-card deposit over the phone if they can meet your target price; never e-mail your number. Some salespeople will try and get you to come to their showroom to discuss pricing. But many are now savvy enough to work with you electronically, which saves time for both you and them.

Play "match the price." If you want to whittle the price down further, recontact some dealers and ask whether they can beat a competitor’s price. This can be particularly useful if you prefer one dealership, because of location or personal rapport, but another dealer has given you a lower price. If you settle on a price, have the dealer send you a detailed pricing breakdown; you’ll need this when you go to the dealership to close the deal.