My top 5 tips on buying new cars are:



1. Everyone knows we are in a recession. Imagine being a car dealer right now. Just 25 cars on the lot at an average of $40,000 each - there's $1 million tied-up in stock. I know I wouldn't want that weight on my shoulders. You are doing them a favour by taking a car off their hands. Remind them of this fact.

2. If you don't know the difference between the steering wheel and the flywheel, it is essential for you to bring along a friend that does. Car salesmen will pounce on the unwary. Having someone else there not only gives you backup, it also makes the salesman sweat a little more as there are two of you and usually one of them.

3. Don't get distracted. Each little upgrade might be nice and only add a little on to the price, but is it really worth it? Limited editions, satellite navigation, alloy wheels etc all add to the initial cost and in most cases add little to the resale value. Stick to your guns and get the model that you want. If you really need a particular upgrade, slip it in later on in negotiations. Just when they think you're about to give up and go...mention that perhaps, if they included the upgrade, it might seal the deal for you.

4. Absolutely, always take either the exact car you are going to buy, or one that is the same model out for a test drive. Don't test a model with sport suspension if the one you have your eye on doesn't for example, as it will feel like a different car. With most ranges of cars, there is a huge difference between the top and bottom of the range models. BMW 318i vs BMW M3 being a prime example. Test the car beforehand, get a feel for it. See what it is like to drive, what the visibility is like, build quality etc.

5. When it comes down to the wire and you are negotiating the final price, stand your ground. Let them tell you their first, laughable, best offer that they can come up with. Then knock off about a third to 50% depending on your cheekiness. Tell them the price you want to pay for the car and then keep quiet. If they say they can't possibly do it at your suggested price, remain silent. Soon enough they'll drop their offer, which you can again beat down until you both agree on a reasonable price. (Then tell them to throw in the metallic paint job and it's a deal!)

Bonus 6th Tip:

Always remember the "golden rule" of car buying, which is that you can always walk away. There is no shame in leaving the car sat there on the forecourt. If you're not comfortable with the price, selling tactics or even the taste of their free coffee (if they even offer you one) you can always turn around and head back out the door again. Whichever new car you are thinking of buying, I guarantee you that there are others. Even if it were a Bugatti Veryon, you could find another if the deal just doesn't feel right.

Stay confident. Dealers are all quaking in their boots at the moment and any sale is better than no sales - it really is a buyers' market now so get out there and grab a bargain!

I hope these top tips on buying new cars help you save some money next time you are down at the car dealers.