Knowing what to do and what not to do, when buying a car can make difference of hundreds or even thousands of dollars over the term of your loan and the life of your vehicle.

Before even setting a foot in dealership, make sure you’ve put yourself in a position to leverage the best deal possible.

Here are five hacks to know before buying your new luxury car:

1-   Identify The Fair Market Value, Average Selling Price And Total Cost of Ownership

Find out the fair market value of the car you are considering. This price enables the dealer to make a profit while still giving you a good deal. When the car dealer knows you’ve done your search and research, he is more likely to offer his best deal first. Also, it is crucial to know the average selling price of the car you desire, as well.

Every car costs more than the sticker price indication. It is up to you to know every fee and cost associated with the vehicle you’re considering. This includes cost of loan payments, gas, insurance, maintenance and more.

2-   Know Your Credit Score And Raise It

There is a direct correlation between you credit score and the loan you’ll be able to secure.Your Fair Isaac Corporation (FICO) credit score, which ranges between 300 and 850, is an approximate representation of the risk you pose to lenders.

Before even visiting a dealership, a car buyer needs to know what his or her credit rating is and how that will affect the financing options. The best way to do this is to get a report from one of the major credit tracking companies.

A better credit score will mean better financing terms and lower interest. The ads people see on television for low lease payments or low interest rates all have fine print – for buyers who qualify. That is, the buyers with excellent credits.

One of the fastest ways is to quickly boost a score is to pay down a credit card debt, because credit-card utilization carries a lot weight with credit reporting agencies.

3-   Cross-check Different Dealerships in The Same Brand

You should not neglect the research work. Read reviews and look into different models of the same brand in different locations and their financing options online as well before you finalize a car.

Dealerships that share a brand name often have different inventories and different prices or deals. Don’t assume that the car you have been aiming for is the same at two dealerships – even if they are both local.

Shoppers should always cross-shop dealerships of the same brand in their town or around the town, if they enjoy the travel. For example: A Mercedes wheel rim comes in various sizes and designs. Therefore, you should ask two or three local Mercedes dealers for their best price and give the other dealership a chance to beat it.

4-   Price Shouldn’t Be The Only Factor and Shop For The Best Interest Rate

For most people, price is a major determining factor when buying a car but don’t let it be the only factor. Sacrificing quality for price is likely to cost you more money in the long run.Make sure the vehicle has gone through a rigorous quality inspection so you can feel confident that it will last for the long haul.

The interest rate on your loan is just as important as the price of the car. A deal on a car’s price isn’t goof if the exorbitant interest rate on your loan is going to jack up the overall cost.

5-   End Of The Year Buying

As the year winds down, dealers are looking to dump their remaining inventory in anticipation of receiving the New Year’s models, which makes early winter a great time to shop for deals. This is especially true for high-end German cars.

Most bargain hunters know the end of the year is a good time to get a deal on a car. But if you’re buying a Mercedes-Benz or a BMV, there is another reason to put off a purchase until December. This is when the sales battle between Germany’s premium brands has climaxed in a burst of incentives.

Spend most of your time choosing a car that’s affordable and meets your needs. Get the best interest rates. And once you have the car, compare insurance quotes from different companies to make sure you’re paying as little as possible over time.