Haggling, horse-trading and bartering ... call it what you will. Though some buyers may consider it great sport to beat the last penny of profit out of an auto dealer, most consumers hate the hassle. Many would just as soon face a firing squad as go through the tribulations of negotiating for a new car.

The system is beginning to change. Many years ago Saturn started the trend with the no-dicker sticker. Nowadays there are sites on the internet that promise to save you time and aggravation when you shop in cyberspace. But until haggling is truly a thing of the past, here are seven steps to help you deal with a dealer.

1. Do your homework. The first step is to figure out exactly what vehicle you want to buy that's in your price range. Don't waste everyone's time test-driving and negotiating for a car you can't possibly afford. In general, you can't do better than the internet for basic research on new vehicles. Our IntelliChoice.com site, for example, is a good place to start your quest for a new set of wheels. Use our AutoPilot tool to help you find a vehicle that fits all your criteria, including price. Once you find which model is best for you, compare trimline pricing for specific versions of that car to explore powertrain and equipment combinations. Note that most manufacturers offer a variety of trims for a given model line, from a value-priced entry-level version to a top-of-the-line trim with every option imaginable.

2. Refine your choices. Once you have a list of new-car candidates, continue your research to narrow down your choices to one or two models. Read critical reviews in magazines such as Automobile, Motor Trend, and in our own IntelliChoice.com Buyer’s Guide pages. While you're on our site, look at government crash-test results as well as ownership cost value ratings. Also, take a peek in the virtual showrooms of automakers, where you'll find everything from option lists to color selection (note that you won’t find invoice pricing on manufacturer sites; for that, you'll need to use a third party site). We're rapidly approaching the time we'll even be able to take virtual test drives of new cars.
3. Take a test drive. Of course, that virtual-world spin on the computer is no replacement for a real-world test drive. Once you've narrowed down your choices to a couple of models, it's time to take a test drive or two at your local dealer. Be prepared for some sales pressure to entice you into buying the vehicle right then. But resist it; explain that you're still comparison shopping. Thank the salesperson for his or her time. Take their card. But don't give them your phone number or address. You might also find a friend or family member with the kind of vehicle you're considering and test-drive their car. Attend an auto show; you won't be able to drive the vehicle, but you will be able to sit in it and examine it closely. Better still: Rent for a day the vehicle you're considering so you can come to know it well. The rental fee is a small price to pay to avoid a huge mistake in buying the wrong car.
4. Obtain pricing data. Now that you've settled on the new car (as well any options you require), it's time to figure out a target purchase price. Study the suggested retail price and dealer's cost for both the vehicle and its options. Don't forget to subtract any current factory-to-dealer and factory-to-customer rebates from the target price. Online, IntelliChoice.com offers all the pricing data for the vehicle you want plus current buyer and dealer incentives. You can also calculate the value of your used-car trade-in.
5. Locate your vehicle. At this point, you're ready to contact dealers again. Call several within a reasonable driving distance and ask each if they have the car on their lot with the options you want. Or, if you prefer to cyber-shop, contact dealers online. You can submit a “lead” to a dealer through a manufacturer website and obtain pricing quotes from different dealers in your area. Alternatively, you can submit an inquiry through our specialized Buying Program where a pre-approved dealer will contact you with competitive, no-hassle pricing.
6. Negotiate a price. You can do it the old-fashioned way, face-to-face at a dealership. Or, you can do it online or over the phone. But in any case, always remember the golden rule of car-buying: negotiate the price of the car first. Then discuss financing arrangements. Then discuss the value of your trade-in. Always keep the three transactions separate; salespeople are adept at giving away with one hand and taking more with the other. For instance, they may talk about monthly payments instead of the car's price. By stretching out the length of the loan - with correspondingly lower monthly payments - they can make an overpriced car seem affordable.

1. Keep your cool. During the negotiations the salesperson may try to pressure you: "Are you ready to buy today?" The salesperson may play on your sympathy: "I'll lose my job if I agree to ...." The salesperson may intimidate you: "The dealer cost figures you have are all wrong." Or, the salesperson may indicate you have a deal and then turn you over to a sales manager who nixes it; together, they'll work on you to sweeten the deal in their favor. But through it all, stay confident of your research and remember the Scout's motto: Be prepared. Be prepared to buy the vehicle as soon as you've arrived at a fair price. And, if you feel mistreated, be prepared to walk out of the dealership. On the other hand, let the dealer make a buck. Profit is not a dirty word, and no dealer is going to sell you a $10 bill for a buck and remain in business. Always make sure that the paperwork you sign matches the price negotiated.