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Negotiating Strategies for Buying a Used Car

Buying a used car from a salesman works in much the same way as it does when buying a new car. You need to prepare to negotiate in order to obtain the best price for that car. There are some important differences too including dealer markup and price, information that can spell the difference between obtaining a great deal or being taken for a ride.

Research first -- Unlike new cars, the price you pay for a new car can vary widely. That's because manufacturers set a suggested sticker price for new cars while prices of used cars can fluctuate. That also means conducting extensive research first by visiting Kelley Blue Book's site at kbb.com to uncover that information. Plug in as much information about the vehicle that you know to get a price that is close to what the dealer might charge. You'll also find out what the car might retail for if sold privately. Expect to pay somewhere between the private price and the dealer price for the car.

Shop around -- What causes consumers the most problems is not shopping around. It isn't wrong for you to settle with one dealer, but you could miss out on a better deal if you don't explore your options locally. You probably prefer a dealer over a private party, given that the former may offer a warranty and the latter will be selling to you a car "as is." Still, there are many places for you to shop with some offering a better price, a better warranty or both. Make sure you weigh each factor collectively before arriving at your purchase decision.


Consider your trade in -- Not all used car dealers welcome a trade, but if you car is in good shape and is a desirable model, then you may have a negotiation tool at your disposal. That means ensuring that you get both the best price for your current car as well as for the car you want to buy. Again, use Kelley Blue Book to help you identify the price of your current car. Make allowances for mileage, interior and exterior condition, and aftermarket add ons such as a rear spoiler, a set of aluminum-alloy wheels or a custom grille.

Negotiate from strength -- Once you have a price in mind, then stick with it. Your firmness will enable you to command the best deal and to drive off in a new ride. If the salesperson refuses your offer, then be prepared to leave. Just your threat of leaving can have him singing another tune, realizing that his chance at a sale and a profit will leave with you. Your commission may be smaller, but he'll still make money, but only if he closes the deal. No deal means no dollars!

As with any deal-making, you'll want to ensure that you dot your "i's" and cross your "t's" as certain expenses may not be known. Those expenses include a sales tax, a transfer fee, license or tag, and other possible costs. Your insurance costs may change too.

Matthew C. Keegan is editor and publisher of "Auto Trends Magazine." Matt is also a contributing writer for Andy's Auto Sport and affiliated websites, an aftermarket supplier of quality auto parts including Flowmaster Exhaust and Injen Intakes.

Article Source: Matthew_Keegan

113 comments:

  1. Buying a used car rather than a new car can be cost-efficient. If you have a tight budget for a new care, explore your options and see what kind of financial instruments you can use to augment your resources. Research on prices of used cars because these can change depending on the preferred price of the dealer and other factors such as the condition of the car itself.


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  2. Well, getting a used car's good and all but you also gotta check out if it’s in good quality. A used car can save you a few bucks, when you buy it, but it may end up costing you a lot in repairs. Only buy from trustable dealers.


    Stelle Courney

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  3. It is a good thing to always play it cool. Try to talk about a vehicle that has options and packages you know the dealer doesn’t have in their inventory to let them think you want that kind of vehicle right away. Then reluctantly give them an opportunity to offer an alternative vehicle that just so happens to be the car you really want. Since it looks like you are making a compromise, make the salesman meet you half way. ;)

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  4. I like the idea of shopping around. Exploring your options before deciding will help you figure out the better choices available to you. Used car lot, auctions, ex-rental cars, and manufacturer used car programs are some pretty good ways to land a car. Some even offers warranties to prove that the cars do not have any defects. And the price can vary depending on the dealer’s offer, so you can always find something, even if you’re on a strict budget.


    Timmy Radloff

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  5. Buying a used car is somewhat similar to buying a new home or any other property. You don’t jump on the deal right away simply because the dealer tells you that “it’s the best deal you can get.” One useful tip that I can provide when buying a used car is to know exactly what you are looking for. Do you need a sedan, an SUV, or a truck? If your mind’s already set, take time to inspect both the car and the fine print of your contract. Take the time to ask your dealer everything you need to know about the car.

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  7. “Shop around”. It would be best to go around first. So that you can see what your options are. In that way, you’ll be able to narrow down your choices, and from there, you can do your research around your choices to help you negotiate a better deal with the car dealer.

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  8. Negotiation is the principle of buying and selling of any product. The same principle is applicable when we visit a store for buying a used car. The buying procedure remains same like buying a new car. Somehow negotiation will save you some money in the end of the day.
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  9. I agree about researching first before you go out and search for the car you want personally. If you research about the car that you're aiming for, you would know which parts are most likely in not good condition and needs replacements after a certain period of time. You would also know if the car would give you the most comfortable driving experience you're longing for.

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  11. When buying used cars look for the date purchased, car history, documentations. It is recommended to buy cars within 2-3 years of used of previous owner.One also to consider is the budget and if car have low mileage!

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  12. These are all great tips. Another one is to read consumer reviews as well as expert ones. Used autos are generally a great buy since they don't depreciate as much in value as a new vehicle.

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  13. I think used cars are much better to buy a new one car. Do not go for the oolder model you can buy some used cars near the current year.

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