Making dealer negotiations more pleasant

Car buying is very complicated, and for many people, unpleasant - for good reason. New cars are pure purchase and assured depreciation, except in the rarest of circumstances. On top of it, car loans are weighted so you pay mostly interest initially, so you don't have much equity in the vehicle - whatever it's worth - for a long time.

So of course it's intimidating, but you can do it. The secret is understanding where the dealer's profit comes from - and knowing when it's time to forget about all that and shop as you would for a good deal on any product.

Though the process can be difficult, buying a new car shouldn't be thought of as a war between buyer and seller; instead, it's really more like a game. The sooner consumers recognize this, the better off they will be. And if you want to win this game, you have to prepare.

As you begin preparations to buy a new car, realize that getting the best possible deal requires a good amount of research and plenty of time. You may need to do a cost-benefit analysis that weighs your time and effort vs. the difference between the invoice price and suggested retail. Without investing any time in research or haggle effort, expect to pay the manufacturer's suggested retail price for the vehicle and possibly more for financing and add-on items.