This is our car-buying method, which is a combination of various experts' advice -- especially Consumer Reports Magazine -- and experience. It has worked well for us multiple times:
I have this very car, and one thing that makes it easy to buy is that options and add-ons aren't really an issue (or, at least that was true when I bought mine 5-6 years ago). An EX comes with certain items, so pretty much every '13 EX on the lot will be identical -- except for color.
When we bought ours, we were open to late-model used, but in reality that just didn't make sense. We found that the price difference between new and the FEW late-model used available was less than $1000. This was just about the time gas prices skyrocketed, and "everyone" wanted to buy something with good mileage, so this may've been an anomoly that might no longer exist.
You've already driven the car, right? You're SURE this is the one? Refuse to drive it again on the day you go in to talk about money. They want to get you into that nice new car, smelling that nice smell, feeling how much nicer it is than your old car . . . but you've already made your decision. No need to do all that and involve emotions. No need to allow the salesman all that time in the car to engraciate himself to you, to make you feel like he's a friend. Today is about price. Price only. Go into the office, talk price. No driving.
DO NOT "work up from invoice". The dealer has multiple invoices with different prices, and he will use this as a tool to convince you you're paying a fair price. They also get bonuses if they sell X number of cars within a certain timeperiod, so even IF they showed you the real invoice (they won't), it wouldn't really be the truthful amount they paid for the car. If they offer to show you the invoice (and you should question why they're so quick to want to show this "private" information to you), decline. Tell them you've already investigated the price of the car, and you know the number you're willing to pay. If they tell you you're unreasonable, say, "Well, perhaps I am, but I know what I am willing to pay. If you're really not interested in selling the car, I'll go elsewhere." They want to make you feel that you're not well informed, but if you've done your homework, that's untrue. Working "down from sticker" is even worse. Come on, we all know that's an outrageously inflated price. You should refuse to acknowledge its existance. Instead, check with Consumer Report Magazine to learn the real cost. Think about it: Why would you begin with ANY number that originates with the people who want to sell you the car /make a big profit from you? They have strong motive to mislead you with inflated numbers. Consumer Reports (and a couple other independent agencies), who stand to make nothing from you, are much more trust-worthy. Add a couple hundred for profit to that, add taxes and tags . . . and that's the price you're willing to pay.
When you go in, refuse to discuss payments, trade ins, or anything else. Discuss only one number: Total, out-the-door price. This should include the car's cost, taxes, tags, transportation fees, everything. You know what you're willing to pay. Stick to it. They'll ask: How much are you comfortable paying each month? I only want to talk about total, out the door price. Are you planning to trade something in? I don't know yet. Right now I only want to talk about total, out the door price. Are you going to finance? We can about that later. I only want to talk about total, out the door price. This isn't reasonable -- it's not how car buying is done. Really? That's too bad. Let's get back to talking about the total, out the door price. Car salesmen HATE this. When they start talking about financing and per-month and ignore this or that fee, THEY are in control. They do this all day, every day, and -- I don't care who you are -- they are better at it than you! So refuse to participate. You only want to talk about one number: Total, out-the-door price. If you're only talking about one number, they cannot manipulate the conversation or twist any numbers around. One number. One number only.
When we bought my Honda, we figured out what we were willing to pay and went to the Honda dealership near our house. They were totally unwilling to talk to us on this level, basically showed us the door. We were polite but explained that this was their one and only chance to sell us that car, and we would not be back. They said, "We don't care. We don't like you anyway." We left. Note that this car exists in large numbers on every Honda lot, so this wasn't a problem -- for us.
We went to another dealer in a neighboring town. Taking the "we're all friends here" approach, they were more willing to talk to us, but they wouldn't meet our number. Again, explained that this was their only shot at meeting our number. We left.
We were feeling a little shakey as we approached the third dealership. We'd used this method before, but we'd experienced more success in the past. Could our homework have been wrong? The third dealership was into theatrics. They brought out people who yelled and told us we couldn't have the car for that price. Again, we left. As we were pulling towards the exit, the salesman who'd helped us first CAME RUNNING out of the building and THREW HIMSELF onto the hood of our car. My husband said quietly, "You're about to get your car." An hour later, we paid $25 more than we had planned, and I drove the car home.
Incidentally, the dealership who eventually sold to us was -- by far -- the largest Honda dealer we visited. We feel they were more willing to deal because they get a kickback for making certain sales numbers, and even a car with a small profit margin takes them closer to that bonus. So we feel that you're going to get a better price from a big dealership.
When they learned that we were going to write them a check instead of financing, they were not pleased. They WANT to finance so they can make more money. I really do think we got this car for a good price.
If you need to finance, do it through the bank or the credit union. This isn't as convenient. It means you have to leave your newly purchase, badly wanted car, and you have to finalize the financial choices with your bank or credit union . . . then come back with a check. But you will pay less in interest over the next years if you do this. If you're going to finance, it's best to do your transaction during bank business hours.
If you have trouble obtaining financing, it's a hint that you cannot afford the car and should make other choices. Tough advice, but truthful. Never strap yourself financially for a car, especially not a new car.
If you intend to trade in your old car, make it a separate transaction. Again, they do this every day, all day, and if you allow them to mix the two transactions, they will fast-talk you 'til you don't know just what you paid for the new car OR what you received for the old car. If you sell the car yourself, which is some trouble, you'll probably get a better price.