How to negotiate for a used car

Negotiating with the Dealer

Needless to say, auto dealers have "been around the negotiating block" quite a few times. You may have a different experience in dealing with a dealer than you would if you were to deal with a private party, but both have the same goal: selling you the car and making themselves the biggest profit.

When you make the dealer an offer, let them know that you are a serious buyer and you are ready to buy if the offer is appropriate. You should adhere to the following guidelines:

Make an opening offer that is low, but in the ballpark. Only enter into negotiations with a salesperson you feel comfortable negotiating with. Be prepared to spend an hour or more negotiating. Don't be distracted by the salesperson or manager with attempts to focus on anything but the price until you have set and agreed to that. Protect your good deal in the Finance and Insurance room by paying close attention to what is offered or presented in the contract. Many dealers offer quality and sometimes worthwhile products such as a warranty or lojack, but you want to look at those seperate to the transaction and negotiate on those as well. Expect a closer to try to improve the deal before you reach a final price. Decide ahead of time how high you will go for that specfic vehicle, and walk out when you reach this price. Leave the dealership if you get tired or hungry -- don't be hurried into a decision.

Negotiating with a Private Party -- Deal... or No Deal?

For many, buying used vehicles from private parties is less disheartening than transacting directly with dealerships. Selling the vehicle off is usually more imperative to private parties, because they don't deal in large quantities of inventory, like dealerships. Buyers can use this as a bargaining tool in negotiating and driving down the price with private parties, because sellers are eager to sell.

Example: Let's say you're interested in buying a used car with a private party sticker price of $5,000. If the seller sees that you're a serious buyer, then he may drop the price down to $4,500. Let's then assume you offered him $4,250 in cash. He's more than likely to take the deal. Buyers might also run across steadfast sellers that won't budge from their asking price. In these situations, it's usually best to let some time pass before revisiting with a counter-offer. Consider paying their price only if you're fixated with the vehicle.

Example: Let's say you're interested in the same buying a used car with a private party sticker price of $5,000. You make him a reasonable offer and the seller sees you're highly interested in buying. HE might use that as a bargaining chip in his own favor, and tell you that he has another offer on the vehicle that beats your offer. The key is to start low and find a middle ground. If you lay all your cards out on the table too early, you'll get taken for a rideÉand not a pleasant one in your new car! Once you've wrangled yourself a final price, make sure your seller completes all necessary paperwork in a timely fashion.

Back to the Used Car Buyer's Bill of Rights