I've been searching AutoTrader and local lots for an affordable (under $4500) car. I have read your site several times trying to absorb as much as possible. I'm a little confused about the "deposit in hand" while negotiating. After the test drive, etc, Is the buyer "required" to give a deposit in order to start negotiations? I want to pay cash, but know you advised us all to say "undecided" which I will do. I also notice one I'm looking at has a "dealer fee" of $400, which I think is outlandish on top of tax, tag, and title. Any comments?

Many dealerships will ask for a deposit when you make an offer, if you dont feel comfortable negotiating this way, say you will leave a deposit if we make a deal, if they insist then it's up to you, leave or stay.

Dealer fee - handling fee - administration fees all spell the same " cash cow for dealership "

most dealers charge this fee, but it can be negotiated away, $400.is on the heavy side, personally I would negotiate cost of vehicle only, and then walk away if extra fees beyond tax, licence, were not included, at this point they may reduce the amount, but walk away, you can always come back.