what is the best way to negotiate the best price on a new car?

Call the dealer and ask for a price quote before you actually go visit them. I think they will be nicer and more lenient that way because they have no idea if you are actually going to buy from them or not. If they say that they can only give you a price quote if you go down and check them out, tell them that you wont go and that you wont buy from them. They will probably give in and give you a good quote.

When you go visit the dealer, be determined and stand your ground and be ready to use "I got a better deal at another dealership" if they refuse to give you a resonable offer. Also, you can walk away anytime you like. My dad was about to walk away from the dealer and the salesman gave him a better deal.

If your a AAA member call the dealer, from there they will show you what they paid for the car what the retail is and how much over the invoice they will sell it for which is mandated by AAA. I got a 2007 Prius for only 400 over invoice doing it that way which meant about 4000 less. That or wait until the 08 models come out and go to get a 2007 they will go lower than invoice just to get rid of the car.

Just one thing you have to keep in mind and most importants.

"Be ready to walk out anytime you dont feel the conversation is not heading toward to ur goal"

other tips are all over the internet...

tell them what you want to pay and stand your ground and if they wount give you what you want walk away. 9 time out of 10 they will not let you walk out with out a car. they want a sale and they will give in if you offer a reasonable ammount.