Tip 6. Don’t talk financing or trade-ins until you’ve settled on a price

A dealer isn't doing you any favors if he gives you a deal on the new car, and then offers you $1,000 below market value on your trade-in. The new car, the trade-in and financing are three separate negotiations — treat them as such. It's always in your interest to get the best possible price on each transaction; that's why you should do your research ahead of time. If the dealer isn't hitting the numbers you brought with you, shop or sell elsewhere.

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Tip 7. Don’t fail the test drive

Taking a new car out for a spin can be an exciting experience, but don't get too giddy. If the salesman sees that you've formed an emotional attachment to the vehicle, it may put him out of the mood to compromise. "The fact is that analytical car buyers pay less for their new cars than emotionally charged buyers," Royce says. So stay calm, ask questions and pay attention to the behavior of the car. Take your time and inspect the environment of the vehicle, make sure that it's comfortable and that the controls make sense to you. You're going to spend a lot of time in this car, so it's OK to nitpick.

Tip 8. Take a close look at the fees

Before you sign anything, take a close look at all the numbers on each contract to ensure they are what you agreed upon. Don't be surprised to find a number of fees on the sales contract, but be aware that some are standard, some are negotiable and some are simply outrageous.

Expect to pay sales tax, a destination charge, title and registration fees, and a modest documentation fee ($50 to $100 is reasonable, but don't be surprised if dealers in some states charge up to $300). Advertising charges, which are fees charged to the dealers by manufacturers, often get passed right on to customers. Feel free to push back on these, or at least demand a further break on the price of the vehicle. Then there are things like the "dealer prep fee," which Royce characterizes as an outright scam. "All vehicles must be prepped before being placed on the dealership lot," he says. "So you shouldn't pay extra for it."

Royce also warns against "market value" dealer markups on popular cars. "This can be anywhere from $500 to thousands of dollars," he says. "It only works if you agree to it." If dealers refuse to eliminate this fee, maybe you should consider a less popular car.

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Tip 9. Don’t buy into pointless dealership services

As if predatory fees aren't bad enough, there are useless extras hawked by dealers, including rust-proofing, window VIN etching, fabric protection and paint sealant. All are utter scams. The truth is that all modern cars already have rust protection from the factory. VIN etching can be done yourself with a kit, but it is hardly the theft deterrent it's claimed to be. Fabric protection can also be done yourself with a spray can, and paint sealant is just a liquid wax you can buy at an auto parts store for $10. You don't need any of it.

Tip 10. Be ready to walk away

Don't forget that your entire leverage with the auto dealer lies in your ability to walk out the door. No car salesman is going to take a loss on a sale, but even a few hundred dollars is better than a dead deal. You don't need to be obnoxious about it, but be firm in what you're willing to pay and accept in the negotiations. If he's smart, the dealer will come to terms that are acceptable, make the deal quickly and try to pull a fast one on the next sucker. But if he insists on trying to gouge you, then gather your things and politely say goodbye.

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Sam Foley is a Connecticut-based automotive journalist who has written for GQ, Forbes, USA Today, the New York Post and various other publications.

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