So, you've found your new dream car. It has everything you need, and is the style you want. Now you just have to make sure that you don't spend too much for it.

First of all, it is OK to ask for a discount off the asking price.

While car dealers would love if every buyer simply paid the asking price of the car, they are willing to offer some form of discount on most models they sell. The amount they are willing to discount will depend on several things.

Popularity of the model you want

Every once and a while a car company makes a model that is extremely popular, and they have trouble keeping up with buyer demand. If this the case for your dream car, don't expect to get any discounts. This won't be a problem most of the time however - just take a look to see many of the model sitting on the lot.

When you go shopping for the car

Car dealers are more willing to offer discounts when times are slow, or toward the end of the month if they are looking to reduce their inventory. It costs dealers money to have new cars on the lot - so they don't want them sitting around too long. They are likely to offer a discount if it means they can reduce their expenses.

Your level of buying interest

You want to let a dealer know that you like the car, so they know you are serious about the buying process. However, you also want to let them know that you are willing to walk away if you don't get some form of discount. Remember, if this is a new car, the dealer knows that you can go to another dealer in a nearby town and negotiate for a better price - so they are likely to offer you something.

How much can I expect to save?

There are many ways dealers can make money when selling cars. There is the markup on the car itself, but the dealer may also receive financial incentives from the manufacturer based on their dealership sales performance. There is no practical way for you to know exactly how much the dealer is truly making on the sale of the car, so don't obsess over it. The car dealer is a business, so they need to make some form of profit. As long as you do some negotiating on price, you will do fine.