Do you have dreams of walking into a used car dealer and getting a great car at a great price? To do so, you’ll need to dust off your negotiation powers and get busy. In this brief article, we will teach you everything you need to know to negotiate the best price for your second hand car.
1. Do your homework. Always know the value of the car you want to purchase. Pay particular attention to options and vehicle condition as these will greatly influence the price. We suggest using Edmunds.com for research. With a rough idea of the value, you can better gauge if you are getting a good deal.
2. Get a history report. Whether Carfax, AutoCheck or some other vehicle history report, these reports can tell you whether the car was ever in an accident, how many people owned it, whether it has a “salvaged” title – and other scary stuff. This report can be used to evaluate the dealer’s honesty as well. If the used car is advertised as “owned by one person,” but the history report shows 10 owners, find another dealer.
3. Be realistic. Second hand car dealers need to make a profit. That’s what they do – they buy and sell cars to make a profit margin. While you always want to aim for a great deal – getting a good deal is still, well, good. Regardless of “estimated” prices found on the Internet, buying and selling used cars occurs in an open market. Market price wins the day. Throw out the lowest and the highest prices and work in the middle.
4. Be prepared to negotiate. Many people don’t realize this but the asking price is simply the price the dealer would like to get. Make a lower offer and then wait for them to counter the offer. For example, you could offer 20% less than the sticker price and see what happens.
5. No emotions. Never indicate how badly you want the car. Although it may be your dream vehicle, the dealer does not need to know this. In fact, it may be best to find something wrong with it. Professional car buyers will actually put their finger in a ding, or run their hand over a scratch. They won’t say anything, but they’ll be reducing the value of the car in order to negotiate a better price. You can also say, “Well I really wanted it in red.”
6. Be willing to walk away. This can be tough – especially if you love and/or need the car. But set your mind to be willing to walk out of negotiations. In fact, you can try this tactic if the negotiations aren’t going your way. By being willing to leave, you maintain the upper hand.
7. Be nice. People like to help nice people. It works wonders in the car industry.
We hope these tips help when dealing with second hand car dealers.
Let us know your tips and suggestions!