Let's face it, the car salesman's job is to sell you a new or used car -- he isn't your friend although he is going to try and become friends with you in order to put you at ease.

The first thing you need to know when you enter the dealer showroom is how you can tell when a car salesman is lying...when his lips are moving.

The dealers are going to try and keep you in the dealership for as long as they can, thinking that the longer you are there the more likely you will end up buying something. They will ask you for your driver's license, the keys to your trade in, a check, your wristwatch; anything they can use as glue to keep you there.

If you read everything on this site and do exactly what we say, you will avoid all of this and buy the new or used car that YOU want to buy, not one that the salesperson wants to sell you.

When test driving a new or used car, the salesman is going to say a lot of things to get you emotionally involved in the sale. You have to be aware of what is going on because it is usually very subtle. They are going to say, "So, where are you going to take this new vehicle on vacation?" "You really look good in the driver's seat," "This car is perfect for you," "You seem like you really want this car," etc. Don't get emotionally involved with the car. Don't take mental ownership. the car you are driving is not the only one in town or in your state or in the country. The car you are test driving is a dime a dozen, regardless of what the dealer is telling you.

When negotiating your deal, if you do it at the dealer they are going to try and confuse you with as many numbers as they can with as many choices as possible. If you have a trade in, they are going to show you a number called the trade in allowance. Tell them you want to see the actual trade in appraisal form and ask them to point out what the ACV is. The ACV is what the dealer is actually giving you for your trade in. Also, always ask the dealer for their buy rate in relation to the interest rate, whether you are leasing or financing. The dealer is going to try and make money on the financing. Don't let them get away with it. Always ask to see their financing sheets which show the dealers' buy rates and tell them the deal has to be done at their buy rate or there is no deal.

You shouldn't even be at the dealer when negotiating the deal. All of this should happen at home on the phone or thru email. Going to the dealer with no deal set in place is a mistake and the dealer will try and take advantage of you every step of the way.

The dealer will try to close you on the loan payment. Don't fall into this trap. Negotiate the price of the car first, then negotiate the financing, then tell them if you have a trade or if you want to put money down. If you try and negotiate payment, you are going to lose in the end. Price first, then interest rate, then money down and then lastly trade in. All of this shouldn't be attempted at the dealership.