How To Talk Down Used Car Price

How To Negotiate For A Used Car

Negotiating a lower price on a used car isnt as scary as it seems. Going in with a clear head and the research youve done is half of the battle. If you do your homework, plan for rejections and manage your expectations, the experience will be far smoother. Having a specific number in mind when going into a negotiation could hurt the entire process. Instead, go in with a price range that you’re looking to get and base this range off the research you’ve done. When you’re choosing the range, keep in mind that there are many things that can influence the price of a used car, so plan for those.

How Much Can You Negotiate On A Used Car

There isnt a set amount that you can negotiate a used car for. Each used vehicle is different in one way or another, and the price will be a direct result of that. Many factors can influence the deal youre negotiating. Things like: whats the average selling price of similar cars, was the scheduled maintenance kept up with, does the car need detailing, are there winter tires included? These may seem like tiny things, but they could be a major difference maker when it comes to how much of a discount you can get on the used car youre looking at. Use these factors to negotiate the price.

Can I Trust A Used Car Site

Used car sites that connect shoppers with private sellers can do little to offer a safe shopping experience. What they can do, however, is provide as much information as possible to help buyers make the most informed decision.

As a result, used car sites typically include CARFAX reports, information about how long a car has been on sale, and pricing comparison guides as well as search filters to help shoppers weed out the choices they dont want. Sites that aggregate listings from many online marketplaces can typically do little to ensure that the listings they display are trustworthy, and buyers must always do their due diligence when shopping for a car.

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How Much Will A Dealership Come Down On Price On A New Car

Focus any negotiation on that dealer cost. For an average car, 2% above the dealers invoice price is a reasonably good deal. A hot-selling car may have little room for negotiation, while you may be able to go even lower with a slow-selling model. Salespeople will usually try to negotiate based on the MSRP.

Be On Guard For Common Dealer Tricks

Car dealers often get a bad rap but you cant blame them for trying their best to maximize profit. Their job is to sell a car as close as possible to the sticker price, while yours is to convince them to sell it nearer the invoice price.

Sellers use several methods to extract more money from you. Here are some of the main culprits:

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Stay Firm And Hold Your Ground

A salespersons initial reaction might be dismissive. He may state flatly that theres no way the sales manager will let the vehicle be sold at your price. He may even try to tell you that your numbers are wrong. If so, show a printout of your sources of information.

Even if he cant find fault with your numbers, he may counter your bid with a barrage of objections, pleas, and ploys to get you to raise your offer. Because the manager wields the real power to approve deals, you can expect this. But make it clear that you dont have a lot of time to sit around and wait. You also have some wiggle room. After all, the target price that you calculated allowed for a reasonable dealer profit.

While you can allow your target price to go up in small increments, dont go above the lowest competing bid youve gathered. You dont want to give the impression that youre simply responding to pressure. It might help to state a rationale for your flexibility on price. For example, you could say that you value the fact the dealership is conveniently close or that you like the color of a particular car.

Remind the salesperson that youre ready to complete the purchase on the spot if your price can be met. Otherwise, youll have to think it over.

If the negotiations are going nowhere, this is the time to excuse yourself and get up to leave. Theres no need for you to waste your time or the salespersons time any further.

Where You Can Still Negotiate

While the used car market doesnt offer as much room for negotiation as it once did, there are still some points that you can negotiate onand some places that can help you get the funds you really want. Consider:

New cars offer more wiggle room. They just have more options, from factory rebates to upgrades added to your vehicle. In some cases, you may be able to get a better deal on a brand new vehicle than one that has only been used for a couple of years.

You may be able to negotiate the selling price of your car. In some cases, dealerships have more room to offer you extra money for your current vehicle than they do to drop the price of the vehicle youre buying.

Choosing the right used vehicle is less about finding a dealership that will negotiate down on their price, and more about finding a good deal based on the MSRP of the car.

Dont be surprised if you only have a few hundred dollars negotiating room on your next used vehicle purchaseand be willing to do your research to ensure that you get the best deal possible.

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Research What Incentives Are Available For The Car You Want

Automakers, like Honda, Toyota or Ford, might offer dealerships and consumers incentives to choose a particular car model. Know what these incentives are ahead of time to make sure youre getting them included in your final price.

And if youre planning on financing the car, check to see if there are any low-interest-rate offers available from automakers for the specific car model youre considering. These offers could save you more money in comparison to a loan from a bank. But make sure you have a backup plan lined up in case you arent approved for the promotional interest rate.

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!

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Realize Each Used Car Is Unique And Investigate Its Past

Each car will have a unique history, current condition and number of miles on the odometer.

For this reason, its important to thoroughly investigate any used car you may buy. Get a vehicle history report using a service like Carfax to see how many previous owners the car has had, whether its been in any accidents, and what maintenance or other work has been done on the car. These factors are important in both choosing a used car and negotiating its price.

But Don’t Show Your Hand

• Dont get swept away right off. Supposing he shows you the vehicle of your dreams. It’s perfect, its amazing. You think, I NEED IT! But what should you say? Something like, OK, I see it comes with leather seats . . . that’s pretty nice. The color is okay, not the exact color I was thinking. Not bad.” Do yourself a favor and do NOT gush over the vehicle and beg to drive it. Wait for the salesman to offer the test-drive. You want to appear logical, calculating, and in control the whole time. Someone who is emotional is more inclined to throw logic to the winds. And they know this, and feed off of it.
• Be ready for this question, which they will definitely ask: “So what are you looking to spend?” Here, you have the advantage, because you know the answer. You know what you can spend, and you know what you want to spend. And they have nothing that’s why theyre asking the question. So dont give up all you have unnecessarily.. If you can spend $25,000 to $30,000the former being what youd like to spend, and the latter pretty much breaking the banktell the salesman something like this. Well, I really like this model, and this year, but this model has this option that I really like. And you know, I’d like to come in right around twenty-two or twenty-three, depending on options and availability.”

Write down what they say, every time it changes.

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Learn The Games Car Dealers Play

While car dealerships may have an unsavory reputation, most salespeople are just trying to make a living in an industry where having to hit quotas and upselling are the norm. Stay firm in negotiations, but remember youre dealing with another human. Avoid being unnecessarily rude.

When you make an offer close to the wholesale price, the dealer will likely try every trick in the book to make you feel bad or uncomfortable for lowballing them. But sit tight: Its not about you. Be reasonable and firm with the dealer, and if they try to take advantage of you, remain calm. This is how the game is played. Remember: Youre the one offering money, so you ultimately set the terms, not them.

If you have trouble sticking to your guns, or your friends have said you can be a pushover, bring a more assertive person with you to help steel your resolve.

Its Not Your Negotiation Tactics

There are tips and tricks everywhere for negotiating about the price of a new car, whether youre looking for a fast SUV or a good, reliable vehicle for a new teen driver.

Some people claim to be fantastic at negotiating. Others want to offer you a look at how you, too, can walk into a dealership and walk out with a fantastic deal. These days, however, its no longer about negotiation tactics like convincing the salesperson that you arent really interested in a particular vehicle or that you have another vehicle youve already looked at just waiting for you to return.

The reality is, the salesperson just doesnt have any wiggle room to negotiate and still leave the dealer with a profit on the vehicle.

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So Heres How You Cut The Deal

You just got back from the test drive. It was incredible. You could feel the engine rumbling in your belly. Just the fragrance of the barely-worn leather upholstery intoxicates you with anticipation.

The salesman looks at you. “So what do you think?” You say, “It drives nice. I like this little feature, and this little feature, but I saw the sticker price. We’re not really at my number yet.” This is when the “what-if’s” start. The dealer looks at you. “Well, what if I can take $1,500 off that price? Would that help?””That’s a start. I brought some notes, let’s take a look at some figures.”

Their first offer is just that. Their second offer is just that. It’s the third offer, the fourth offer, and the stop-you-from-walking-out-the-door offer that you’re trying to get to.

Use options to your advantage. They will try and get closer to your number by offering you less of a vehicle in some way, and unless your number is ridiculous, this is not an acceptable solution. Youll say,”Well, I like this number were at, but this model doesn’t have this and that, and your offer on my trade is a little low.” Get what you want for your trade, but don’t be unreasonable. Since youve researched all three Kelly Blue Book values for your trade, you have a good idea what its worth.

Then he’ll start throwing the what-if’s out there again. What if I can throw in the DVD player, and the fancy tires, what if I give you X amount more for your trade. Would we have a deal then?

Research The Market Value For The Car You Want

When youre purchasing a car, youll need to do some research before you start the negotiating process. Youll want to read up on everything you can find about the average price paid for the car youre shopping for.

You can assess the value of the car you want by plugging in its information into a website that tracks and appraises car values, like Kelley Blue Book or Edmunds. This can help you figure out an estimated average price range in your area. Once you have a better idea of cost, you can set your ideal target price for the car youre shopping for.

In some cases, the particular time of day, week, month or year can affect the price you pay for your car. Learn more here about the best time to buy a new car.

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Convincing You To Obtain Financing Through The Dealership

Its not hard to find budget-friendly car financing and your bank or credit union is an excellent place to start. Avoid financing through a dealer. Their zero percent financing may not be available to you without an elite credit rating and the alternative is paying a higher interest rate than you should.

Also beware of accepting a too-good-to-be-true rebate that forces you into higher interest rates down the track.

How Do Car Dealerships Make Money

Car dealers make money by selling vehicles above wholesale. The profit margin on the sales price of a vehicle can be slim, so car dealers make money in other ways, as well. They sell extended warranties, tire and wheel protection, and gap insurance. They also make money through their parts and service department.

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Best Used Car Sites For 2021

• Best for Classic Cars: Hemmings
• Best for Mobile: Autolist
• Best for Cheap Cars: CarGurus
• Best for Comparing Options: AutoTempest
• Best Auction Site: Cars & Bids

AutoTrader tops our list as the best overall used car site as the most recognized car buying and selling online auto marketplace. Its huge volume of listings and advanced search tool make it the go-to place to buy and sell a car.

• Over three million listings nationwide

• Search filters for nearly any option or feature

• Car research, financing, and insurance tools

• Charges to post a listing

• Poor vehicle screening process

• Trade-in restrictions based on location

Founded in 1997, AutoTrader was the first nationwide, online marketplace for new and used cars and is our choice for the best site overall due to its reputation, reach, and abundant research guides. The site hosts three million vehicle listings and offers detailed car reviews, buying tips, finance calculators, and more. Although AutoTrader is not accredited with the Better Business Bureau , it does have an A+ rating from the organization.

One of AutoTraders best features is its advanced search function which makes sorting through its millions of listings much less daunting. Beyond simple make, model, and year, the site offers detailed filters that let users select nearly any search criteria, including gas mileage, exterior and interior colors, transmission type, technology, and more.

Buy Used Cars At Phil Long

At Phil Long Dealerships, we don’t want you to worry aboutthe pricing. That’s why we price our used vehicles to sell. You can trust thatwe put our lowest prices on the tag because we want to make our customers happyand keep the inventory moving. Stop by your nearest dealership today to seewhat used car inventory we currently have.

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Use The ‘if’ And ‘then’ Technique

One of the most effective negotiating tactics at your disposal is the if/then method. Its a simple matter of offering the seller an easy-to-digest choice, like saying If youll consider coming down to my price, then Im prepared to pay for the car right now. Providing an immediate incentive can work wonders and means theyre making the compromise – not you.

Can You Refinance A Car Loan

Yes, many lenders offer auto loan refinance opportunities, and several promise to make the process quick and easy. It can pay to refinance your loan in several different circumstances. For example, you might be able to improve your rate and monthly payment, shorten the term of your loan repayment, or extend the term if you’re having trouble making payments.

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