This sounds obvious. And it totally is. The main thing I have to say here is that you should know your budget without having looked at a single car. Especially if you know you don’t have a lot of wiggle room when it comes to price. It’s easy to make exceptions to your budget once you think you’ve seen “the one”, but believe me when I say that there’s no such thing as a car “soul mate”.

There are a lot of resources online to help you figure this out, but just make sure that you know that important number. Don’t buy more car than you can afford.

Another reason a fixed budget is so important is that it gives you the confidence you need when you negotiate price with whoever is selling you the car. If the salesman isn’t willing to meet you where you feel comfortable, he knows all kinds of tactics to try and get you to raise your current budget (added benefit of buying from a private seller: no salesman). Don’t give in! If you’re willing to walk away, it gives you all kind of power. And, you’d be surprised at how many deals happen as someone is getting ready to walk out the door. More than likely, you’ll hear something like “wait, don’t go, let me talk to my manager and see what I can do.”

Don’t forget, you’re the one with the money. Keep your budget in mind and don’t act like this is an urgent purchase. Just stay cool.