Step 4: Finding the exact car you want to buy

You should now have a specific idea of the car you want to buy. This means you know the year, make, model, trim level, options and color. The more flexible you can be about these specifics, the wider the range of the cars you'll find available for sale. Being flexible will give you additional bargaining power. For example, a shopper might be very firm about the make, model and trim level, but could accept a variety of options and colors. If you're a shopper who definitely wants hard-to-find options and a specific color, it will be more difficult to make a great deal. Why? You have no leverage as a negotiator. You have to pay the dealer's price or try to locate another identical vehicle. Obviously, if you do find the exact car you're looking for, there's no need to volunteer this information to the dealership.

In any case, locate the exact car you want by sending e-mails to the Internet managers of dealers in your area. On Edmunds.com, you can simultaneously solicit quotes from multiple dealers. In many cases, you will have to follow up with a phone call. Say something like: "I'm looking for this year's Honda Accord. I'm not fussy about the color except I don't want black or white. I want ABS and side airbags. What is the closest thing you have to that on your lot?" Often the salesperson will have to check his inventory and call you back. After a few phone calls you will have a good idea of how widely available the car is. If there are several dealerships offering the same car, you will be in a better position to make a good deal.

Edmunds.com also makes it possible for you to search the inventory of most dealership lots. Click on "Search New Car Listings" on our home page.

As you make phone calls and exchange e-mails, take careful notes. You should record information about each car you locate, including the color, options, and the dealership name. This will save time as you continue through the shopping process.