Rule one: Never pay more than the Target Price
 The latest round of research for the What Car? Target Price – a realistic discounted figure for every new car on sale – shows that four-figure discounts are available on most mainstream cars. The average saving is £1354.

 If every new car sold during the plate-change month of September is sold at Target Price, that makes a total saving of more than £587 million.

 Rule two: Shop around for finance
 Most car buyers know they need to haggle to buy a new car at a fair price. Many then risk throwing away any money saved by not shopping around for finance.

 High street and internet-based lenders are offering loan rates as low as 5.8% APR, while standard-rate dealer finance often charges interest at 10% APR or more.

 Don’t assume the finance a dealer offers is competitive. Sign up to the first hire purchase deal put in front of you and you could pay thousands of pounds over the odds.

 Rule three: You can still haggle on special offers
 Salesmen will sometimes try to persuade you that a cashback deal or interest-free finance package puts an end to haggling.

 Don’t believe a word of it. These buying incentives are almost always paid for by the manufacturer, so the dealer still has a profit margin to play with. You can – and should – keep on haggling.

 Rule four: Concentrate on the ‘cost to change’
 Don’t just look at the price of the car you’re buying. Think about how much you’re being offered for your old car, too. It’s the difference between the two – the cost to change – which is the true measure of a good deal.

 Sometimes a salesman will give a great deal on a new car but undervalue your part-exchange. Guard against this by checking how much your car is worth in the What Car? Price Guide, or online at Whatcar.com.

 Rule five: Be ready to walk away
 New car sales, especially to private buyers, are well down this year. It’s a buyer’s market. The salesman needs you more than you need him. There are plenty of other dealers ready to cut the price if your local dealer won’t.

 ------

Forewarned is forearmed
Know what you're looking for before you walk into the dealership. The internet is an excellent research tool and can arm you with everything from prices and specifications to independent reviews. If you go in prepared you are in a much better position to start wheeling and dealing.

Alternately, do not let the dealer bamboozle you. If you are unsure of something, or confused by jargon, do not sign anything until it has been clearly explained to you - either by the salesman or by an independent source, such as the internet.

Which options do I need?
Be aware of the standard features. Often dealers will have a display or demonstration car with optional features fitted. But, if you don't want those features, don't let the dealer push you into paying for them.

Don't waste your money on unnecessary dealer-sourced rust-proofing - most cars today are rust-proofed by the factory and offer significant protection against corrosion. Likewise, expensive paint and upholstery protection measures are not necessary today with good quality anti-fade paints and quality materials employed by most manufacturers.

Agree on a price
The recommended retail price on most cars these days is exactly that - recommended. Unless it's a new model or in high demand, most dealers will be prepared to negotiate to some extent. That's why it's crucial to shop around.

Ask for a drive-away price - that's the figure you'll be paying to leave the dealership, complete with the often hefty dealer delivery charge, registration and stamp duty (which can vary from state-to-state).

Ask for written quotes, so that there is no misunderstanding if you do decide to go ahead with the deal.

Haggle
Different times of the year can prove more fruitful when it comes to haggling with a dealer. Dealers are set monthly and quarterly targets by car manufacturers, so they're often prepared to crunch a deal more towards the end of the month or the end of a quarter (March, June, September and December).

Extended Warranties
Be aware of extended warranties. Often they are offered by a specific dealer and are not transferable between dealers. Read the fine print, as they are usually a way to force you into servicing your car with that dealer.

When new is not new
Always check the build date and compliance plate of the vehicle you're looking at. The build date signifies when a car left the production line and the compliance plate tells you when it cleared customs in Australia. There can often be a big difference between the two and - even though it's the compliance plate that legally determines what year model a car is - the build date is still important when it comes time to selling.

If you're looking to buy a new car early in the year, check what year model it is. One from the previous year should be offered at a discount to the current year.

And finally...
Organise insurance before you leave the dealership. The last thing you want is a smashed new car and no coverage.