It is not uncommon for college students to buy their first new car while still in college. Many students can tell horror stories about their experience at the new car dealership. Michelle, a CSUS student, tells her story.

One Saturday morning my sister and I went car shopping. I didn?t plan on buying that day. I went to three or four different dealerships and test-drove some cars. The last dealership was Honda. I test drove a Honda and I ended up sitting inside and talking numbers with the salesperson. I knew how much was left on my loan and what the high and low blue book price was for my SUV. I felt I was prepared to get what I wanted. Boy, was I wrong!

A second salesperson came over to close the deal. We looked at the numbers, and he went to okay it with his manager. I was not comfortable with the numbers, and he left three times to talk to his manager, and they lowered something slightly. The last time he said, “my manager is about to ring my neck. He is really going out on a limb for you.”

At this point, I was feeling guilty because he was trying to help me, and he had spent so much time with me. What I really wanted to do was walk away and deal with it another day.

I was okay with the price of the car, but I felt they were really shorting me on the trade in value. I ended up driving the Honda off the lot that night.

Here are some important tips to make the experience go smoothly and to your advantage. First do your homework to find the wholesale/invoice price of the car you are interested in buying. Edmund?s New Car Price Guide covers both domestic and foreign made car prices. Pick out at least two different models of cars and read all you can about them from consumer magazines.

To keep the shopping experience in your favor, there are certain times to shop for your car. Arrive at the dealership an hour before closing because you can avoid the wear down technique. Buy your car at the end of the month because dealers have quotas to fill. The best time of the year to buy a car is from October to March when dealers are trying to clear their inventory for new models.

Don?t forget to take the car out for a test drive, and not just around the block. While test-driving the car, do not compliment anything about the car because the salesperson gains control of the situation. Point out any negatives which gives you leverage when negotiating the deal.

There are traps to avoid when negotiating your car deal. Don?t negotiate on monthly payments, and never tell the salesperson how much you can afford a month. Negotiate the price of the car only. If possible have your financing prearranged. If you have good credit, you should not have to pay a down payment. You need to watch out for the disappearing down payment pocketed by the dealer.

Beware of any addendum sticker on the car. The dealership adds these for their profit. The car comes from the manufacturer with all the protection you need. If you need to trade in your old vehicle, do not let the trade-in be a part of the new car negotiation; it should be a separate negotiation.

Never buy on impulse. Be prepared!