How To Haggle For A Used Car

Negotiate A Fair Price

Figuring out a fair price for a used car is even harder than with a new car, because no two cars have identical histories, and mileage and condition will vary. A variety of websites offer used-car prices and break them down by transaction typedealer, private party, CPO and trade-in. For any car youre interested in buying, look up pricing at Edmunds.com, KBB.com and NadaGuides.com and come up with an average as your target. CarGurus.com rates each vehicle it lists from Great Deal to Overpriced. TrueCar also labels prices from Great Price to High Price based on its own algorithm.

You may prefer the no-haggle routefrom, say, CarMax or Carvana. Without negotiating, you may end up paying a slightly higher price. But remember, its not all about the price you pay on the vehicle. For most buyers, the entire transaction consists of a trade-in as well as the cost of financing. Youll probably come out ahead if you negotiate the price of the new vehicle and the trade-in separately.

Illustration by Adam Allsuch Boardman

Dont Say Youre A Cash Buyer Even If You Are

How to haggle with a car dealer involves knowing what a car salesperson prioritises. And when it comes to car sales, finance deals turn a bigger profit for the dealership. So, if youre paying cash for your new vehicle, dont let them know until youve negotiated a deal. That way, the dealer may work a better price for you with a view to selling finance.

The Type Of Used Vehicle

If you pick a vehicle that other people aren’t interestedin, you might get a better deal. For example, cars without a lot of features ormodels with a manual transmission aren’t usually sought after as often. Thesewill sit on the dealer lot until the right buyer comes along. If you see one ofthese cars, go ahead and make an offer to see if you can get a big discount.

Don’t Miss: How To Check The Oil In Your Car

More Tips For Negotiating A Private

Negotiating for a used car with a private party is more relaxed than going up against a car salesperson. Also, youre dealing directly with the decision maker, so theres no silly back-and-forth to clear the deal with the sales manager.

Often, a private-party seller might arbitrarily choose a price that has no relation to the cars current market value. This makes it especially important to check pricing guides beforehand. Then, when the negotiation begins, you can depersonalize your offer by saying, Kelley Blue Book has it listed at a much lower price.

When you make an offer thats lower than the sellers asking price, it helps to justify the price with a reason. For example, you can say, I was just looking at another car, and they were asking less than you. Or, This is really out of my budget, but I would be willing to make an offer anyway.

Walking Away Might Be Ineffective

When it comes to knowing how to negotiate a car price, leaving the showroom in a huff – real or manufactured – is not as effective as it once was for getting the price down.

Since so much vehicle information is available online, both would-be customers and dealers know roughly what the right price is.

However, if the salesperson wont budge on the price, you know where the door is.

With a new car you’ll need a new vehicle breakdown cover. Get a quick quote at startrescue.co.uk today.

Don’t Miss: How To Properly Jump A Car

Do Ask For A Discount

Sounds simple, but it just might work to ask for a discount when negotiating a price for a used car – even if the dealer knocks off a couple of hundred pounds to make the sale.

When asking for a discount when buying a used car from the dealer, be positive and phrase it “What discount will you give me?”, rather than “Will you give me a discount?”

If they seem reluctant to bring the price down, say youll complete the deal immediately if you get a good price.

Negotiating A Used Car Price With An Individual Seller

You can use many of the same negotiation tactics when buying a used car from a private seller as you would with a dealer. Unlike dealers, individuals typically don’t have high overhead costs to cover when they sell their used car, so the price can be even more dependent on the car’s market value. However, keep in mind that some private sellers have an outstanding loan they want to cover with the sale.

When negotiating a car price with an individual, ask why they’re selling and how much they’re willing to take. Also, see if they’ll allow you to take the car to a trusted mechanic before finalizing the deal. You can negotiate the price down if you find any mechanical issues with the car.

Related articles

You May Like: Does Car Insurance Cover Break Ins

Options If You Dont Want To Haggle

If you dont want to negotiate on car price but still want to try to find a good deal, you have a few options.

You can use a car-buying service that pre-negotiates a price on your behalf. Sams Club, Costco and many others all offer this service. These services may get a referral fee from the dealer though, so you may not get the absolute best price possible.

Another option is shopping at a no-haggle program. These programs exist for both new and used cars.

o-haggle auto buying helps you avoid the time and hassle involved in haggling, which most people dont enjoy, says Steinway.

While these no-haggle programs can lessen the pain of the car-buying process, you may end up paying more for the convenience. And youll need to be careful if going this route do your research first on what a fair price is for the car youre interested in.

How To Haggle: Negotiating A Used Car Purchase

If youre in the market for a used car, you probably have a few goals in mind. First and foremost, youll want to avoid buying a lemon. Fortunately, you can take a few easy precautions to spot a bad used car. Once youve found a keeper, youll want to make sure that it fits your budget. Negotiating the sale price can help ensure this.

Car buying and negotiating go hand in hand. No one ever pays sticker price, right? And yet it can be tough to feel comfortable haggling with someoneespecially a pro like a used car salesperson. Their job is to sell you something, and they know what it takes to do so. For instance, theres usually only one used car you want at a given dealership . To avoid missing out, the salesperson will say you have to act right now.

That can sound intimidating, but this aggressiveness can also help you. Remember, salespeople are there to make deals, which necessitates them having some wiggle room. To take advantage of that, youll have to do a little more than just ask for a lower price . Instead, youll need to make an argument they cant haggle withand then stick to it. Heres how.

Also Check: How To Change Air Filter In Car

Test Drive The Vehicle

I wish I had a dime for every time someone told me, I dont want to drive the car, or I dont need to drive it, or I drove one just like it down the street. I understand you have been told that a salesperson wants you to drive the car, so you fall in love with it, but youre smarter than that.

Take the time to before buying it correctly. You would try a pair of $60 shoes before buying them, wouldnt you?

You should always test drive the exact vehicle you want to buy before committing anything. If the person youre negotiating with will not allow you to drive the car, or you cannot test drive the vehicle for any reason before buying it, dont buy the car and walk away!

NOTE: The test drive is the time a salesperson will use to build a report with you. Salespeople are trained to talk about anything but the vehicle on a test drive. They do this to divert your attention from the car. If they attempt to converse with you and you dont want to talk, politely ask them to let you listen to the vehicle.

Inspect & Test Drive The Car

Having shopped around, the time has come to inspect actual vehicles and pick one to three or so for real negotiations. To do that, it is wise to thoroughly inspect and test drive each car that you are seriously interested in purchasing. Your research has told you how the market values the year/make/model vehicle youre looking at, but you can only tell whether it is worth that amount by test driving it. Get behind the wheel and drive the car as if it were your own. This will help you decide if you want to take the next step negotiating for the purchase of the car. And, equally important, the information you gather on the test drive can be exceptionally useful in the negotiation process. For example, if you hear the brakes squeal, you might assume a brake repair will soon be required. Informing the seller of that could get you a discount from the asking price on that basis alone.

Recommended Reading: What Bike Rack Fits My Car

Use Car Condition As Leverage

Take time to check the condition of the car both inside and out, looking for general wear and tear and for any signs of damage. After all, you can use the vehicles condition as a bargaining tool to get a better deal. If you spot:

• The general condition is worn or poorly kept
• Any dents, scratches, or signs of damage
• An incomplete service history or MOT
• Damage to the upholstery
• Any technical faults

Then you should use that information to do a deal. This is an effective method on how to negotiate used car price.

Find Several Options To Choose From

Pay a visit to a handful of dealerships and private sellers that are selling the kind of car you want and get some offers on the table to pick from. The more options you have, the more power you have in a negotiation. You wont feel boxed in to take a bad deal because you have other options available.

Lets say youre looking at two used trucks that are in similar condition. One is being sold at a dealership and the other by a private seller. After you meet the private seller and kick the tires on the truck, the seller says they want $9,000. You tell them youll sleep on it. The next day, you go to the dealership and the sales guy says they want $10,000 for their truck.

You can tell the dealer, Thats not good enough, since you have a better offer on the table. Maybe the dealer will counter with a new offer thats under $9,000. If not, thats okay. You can just go back to the private seller. Either way, you win. Thats the power of having options!

Don’t Miss: How Much Is A Paint Job For A Car

How To Negotiate To Buy A Used Car

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

Steps

• 5. Inking the deal

Whether youre negotiating to buy a used car from a dealer or private party, learning a few simple concepts can save you a lot of money.

Back in the day, used car-buying negotiations were always done face-to-face, either on the car lot or standing at the curb haggling with the previous owner. Today, many shoppers negotiate for a used car by requesting a car dealer quote online or texting the car’s owner.

Whether you’re negotiating for a used car in person or online, here are some basic guidelines to follow:

Now, here are the details for each of the steps to help you negotiate the best used car deal in the current market.

Will Car Dealers Take Less For Cash

Some dealerships love financing because they earn a commission from the lender, making an extra profit on the loan. Other dealers may prefer cash sales because they immediately close the deal. They might even offer a cash discount. … You’ll find that most private sellers tend to prefer a quick cash sale too.

Recommended Reading: How To Clean Mold Off Leather Car Seats

More Negotiating Tips For Buying A Used Car

Ultimately, youll need to adapt your negotiating style to your own personality. However, here are a few more tips on how to negotiate for a used car:

• Keep it light. Dont make it personal. Stick to numbers and facts.

• Avoid bare-knuckle negotiators. Dont even begin negotiating with a used car salesperson who attempts to bully or intimidate you.

• Negotiate slowly and repeat the numbers. Its easy to get confused, so write down or repeat the price you are offering for the used car.

• Dont start until youre ready. Avoid being led into negotiations at a dealership until youre fully armed and ready to make a deal. Often car salespeople make it sound casual with invitations like, Lets go inside and take a look at some numbers.

• Be ready to walk. This is the classic advice for used car negotiating but its true. If you arent making progress, or you dont like the way youre being treated, its time to walk.

Try Negotiating Over Email

When negotiating with multiple dealerships, consider doing so over email. This way, youll make sure you have everything in writing.

Sonia Steinway, president of Outside Financial, suggests contacting several dealers and asking each for its best price.

This helps you make an apples-to-apples comparison when looking at different quotes. Negotiating over email may also make it seem less personal, which can help you keep emotion out of the process.

Read Also: Rattling Sound In Car When Driving

Negotiate The Final Out

When negotiating the price of the car, make sure youre negotiating on the final price youll pay to drive the car off the lot, which is commonly called a drive-away or out-the-door price.

Tell the dealership youll only work with an out-the-door number and it needs to include all fees, sales tax and any other costs youll have to pay. If the dealer tries to give you a different number when youre wrapping up the deal, seriously consider walking away.

Get Quotes Based On Profit Margin

When you negotiate a better price, donât just get a number for that specific vehicle, says Mike Rabkin, founder of From Car to Finish and a professional negotiator with over 23 years of experience. Instead, ask for the discount related to the suggested retail price or invoice price .

For example, letâs say you’re buying a new Corolla. Instead of talking the dealer down to $16,000, you would instead ask for $1300 less than the Manufacturerâs Suggested Retail Price . âThis way, you can use it for whatever vehicle is available that starts with that description,â Rabkin says.

This discourages dealers from sneaking in a higher price for a different make, model, or style of vehicle. Going back to the Corolla example, if you want to look at a totally different model or just a vehicle with different options, you can easily negotiate the same discount: $1300 off whatever the MSRP is, regardless of the vehicle. If the second car you’re considering has more basic features, this could very well be less than the $16,000 you originally wanted to pay.

Recommended Reading: Will Insurance Cover Unregistered Car

How To Negotiate A Car Price When Paying Cash

Sometimes buying a car makes it feel like youre at the mercy of the car salesman when it comes to getting a good price, but when you pay cash, the ball really is in your court. Cash truly is king, and this is doubly true when you have cash in hand and are ready to plunk it down to pay for your car, truck, van, or SUV in full.

More than anything else, cash gives you a lot of bargaining power when negotiating with the car salesman to get the absolute rock-bottom new or used price on the car you want.

Although financing a car is the more common option, if you have the funds to buy in cash , then you have a lot less hassle to deal with when buying the car you want or need.

Lets run down why paying in cash can be a lucrative endeavor and some tips and tricks for negotiating to get the car you want for less green.

Know What A Good Price Is

Lets say youve decided you can spend $15,000 on a used car and found the exact make, model and year you desire. It fits your budget and is the one you want, so it must be a good price, right?

Not so fast. Just because you can afford to pay $15,000 for the car does not mean thats a good price for it. In fact, the auto may be worth much less than $15,000, and paying that price for it would be throwing some of your money away. So should you do?

There are a number of tools available to shoppers to help determine if a used car price is fair or not. Kelley Blue Book is one of the more established and popular used car valuation sites. Newer sites like CarGurus and iSeeCars also track used car prices so you can make sure youre paying a fair price for a used vehicle.

Shutterstock

Read Also: Can I Exchange My New Car For Another One