Here’s the basic strategy of how to get huge discounts on new cars:

First, never buy a new car on impulse, without careful consideration and lots of research. (Impulse purchases are almost always huge mistakes.) Start by taking a good, hard look at your personal finances to see what you can afford and how much you have for a down payment. If you can afford to pay cash, by all means do it. If you need financing, the first thing to do is get a copy of your credit report at least 60 days before before buying. You will need that extra time to clean up any mistakes in your credit file so that your credit score will be as high as possible. This will enable you to get loans at lower interest rates, which could save you thousands of dollars. Get your credit report here.

While you’re waiting for the credit reporting agencies to fix your credit file, you can start test driving lots of different cars to see which models you like. Just be sure to leave your checkbook (and the title for your trade-in) at home. When dealers and salespeople try to get you to buy, do not give in. Just say, “I’m not ready to buy yet, I’m just looking.” Ignore all their tricks and lies, especially the one where they claim that they can give you a special deal that is only good today. (Dealers all over the country use that trick every day.) Pay particular attention to things like blind spots when driving, comfort (hip room), trunk space, gas mileage and safety ratings. Take lots of notes. And check the repair history of each model by looking in the April issue of Consumer Reports magazine. (If you’re not a subscriber, use the library.)

After you have narrowed your search down to two or three different models, and you’re within several weeks of purchasing, be sure to shop around for car insurance to avoid the unpleasant surprise of buying a new car model that has high insurance rates. Knowing this in advance can give you time to shop around for a better deal, or to choose another model that you can insure for less money. Get insurance quotes here. And shop around for extended warranties, even if you have no intention of buying one. Why? Because their rates are based on frequency of repairs, so this can help you avoid buying a model that will be spending too much time in the repair shop. Get extended warranty quotes here.

When you are ready to buy, shop around for auto loans. Check with local banks and credit unions, then use the Internet to compare rates and get pre-approved for a low-cost loan. Do not go to the dealer to buy a car without pulling your credit and shopping around first. If you skip this step, you’ll be setting yourself up for overpriced dealer financing which could cost you thousands more than the loan you qualify for. Get auto loan quotes here.

After doing all that, you’re finally ready to start getting free price quotes on the model you are interested in. This is where the Internet really comes in handy, because you can do this without leaving your house. Be sure to get multiple price quotes before you start negotiating with dealers, and use their Internet quotes as a starting point to negotiate lower prices. Get free new car price quotes here. It helps to have accurate dealer cost information, since dealer invoice is not the same as dealer cost. And you need to know the actual prices that smart shoppers are paying for the model you want to buy. Get dealer cost information here.

You should be able to do all of your negotiating by email and/or phone. This gives you the advantage. If you negotiate at the dealership, they usually have the advantage — unless you walk out when things are not going your way. This is your best weapon when negotiating at the dealer: after they reject your offer, tell them you are leaving to make the same offer at another competing dealership. Then walk out. Nine times out of ten, they will try to stop you by saying, “If you come back to the showroom, I’m sure I can get your offer approved.” Beware of this trick! They will keep working on you until you’re exhausted, at which point you will probably agree to a higher price (game over, they win).

Finally, be sure to learn the most common tricks and scams that dealers use to overcharge people on new cars. If you’re not aware of these tricks, it’s real easy for dealers to erase all of your negotiated discount. So you might think you’re getting a good deal when you’re really being overcharged. See this car buying tips page to learn more about dealer tricks and scams.

For more new car buying tips, be sure to visit www.carinfo.com