In Part One of this series we stressed the importance of deciding on your price range and arranging financing before you shop. We also told you how to identify good used cars that could be bought at bargain prices.In Part Two, we showed how to shop for used cars by locating several likely candidates you might want to buy. Then we showed you how to test-drive and evaluate the overall condition of these "target cars."

In this final installment, we'll look at how to negotiate for a used car. Then we'll show you how to cover all your bases before you sign on the dotted line.

Step 5: Negotiating for a Used Car

Just the word "negotiating" makes most people cringe. Add in "used cars," and some people run in terror. But negotiating doesn't have to be a grueling experience. With the right preparation and a few simple rules, negotiating can be fun and exciting. If you make a good deal, it gives you a great sense of satisfaction. And if you use Edmunds' True Market Value (TMV®) pricing, you can avoid much of the haggling.

Here are three simple rules that should carry you safely through the negotiating process:
Know the numbers before you begin negotiating.
Always be ready to walk away from a deal you don't like.
Make a low (but reasonable) offer and sweeten the deal by small increments.