When buying a car, it’s best to have a budget ahead of time. Know how much you want to spend on the car and try to stick to that number. Salespeople often ask how much you can afford to pay each month. This is a well-known tactic designed to get you to spend more overall. They can massage the monthly payment by suggesting a longer loan term to make it feel more affordable. Instead of negotiating based on the monthly payment, stick to the total cost to stay inside your budget.

– Choosing the closest dealership

It can be tempting to stick close to home when buying a car. However, you might get a better deal by driving a little farther. Car shopping website Edmunds points out that one big cost can be sales tax. If you live in a state with a high sales tax, you might be better off going to a neighboring state with a lower sales tax.

Your trade-in is designed to help reduce the overall price of your car. If you bring up the trade-in too early, you could be at a disadvantage in negotiating. When a salesperson knows you have a trade-in, they might start with a higher price or not offer as many concessions. Rather than mentioning a trade-in first, try to avoid mentioning it until you’ve settled on a car price. Then you can use your trade-in to lower the final price.

Shopping around for a good price on a car is important, but don’t forget about shopping around for financing. Before you go to the dealership, consider lining up car financing. Compare car loan rates from different institutions, including your bank or credit union and online. You can also find out what financing deal the dealership offers. If you’re borrowing to buy a car, getting the best rate and term can save you money in the long run.

Don’t just take the dealer’s or independent seller’s word for it on a used car. If you have a mechanic you trust, take the car for an inspection. You want to ensure there aren’t unseen issues that pop up in a couple of months — which can add to the overall cost of the car. Find out what problems the car has and get estimates for fixing them.

Once you agree on the price of the car, it’s time to sign the paperwork. Some dealerships start piling on extra costs here. Before signing the contract, find out exactly what fees are charged in the paperwork and how much they will add to the cost.

Even if you love a car, don’t be afraid to walk away from a deal that doesn’t serve you well. Being able to say no can save you money down the road.