Once you've found the perfect vehicle, you'll be ready to go into negotiation. Remember that the advertised price is unlikely to be the final price on a vehicle. Two factors come into play here: firstly, the extra features that the sales person is likely to try to sell you. Secondly, the amount of discount off the list price that you are able to negotiate.

Make sure you've got your finances in order before you start the negotiation (try Simplify's loan calculator to figure out what you can afford), so you know you can afford the list-price BEFORE you start negotiating. That way any discount you negotiate is all upside.

Make sure you are aware of the cost of servicing during the warranty period and what it doesn't cover.

As you go through the negotiation process, make sure the salesperson writes down (on paper or via email) the final, on-the-road cost of the vehicle. This creates a paper trail of the negotiation and avoids you-said/I-said discussions. It's also useful for verifying which options were specified.

Once you have agreed on the purchase price make sure you have a bank cheque ready - most dealerships won't accept any other form of payment. It also prevents being upsold any last minute package or feature that is on top of the purchase price.

Don't forget to get the vehicle insured before you drive it away (Trade Me Insurance has an insurance estimator to calculate the cost). There are disastrous tales of people being in accidents as they drive their new car home.

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