In my last review, I outlined some hints to help in selecting a used car for the best price. In this review, I’ll focus on the techniques with negotiating the best possible price to your advantage.
As I mentioned when selecting a used car, it’s a good practice to do your research on the make and model you desire to purchase. The NADA book or the Internet will provide a great deal of information for used car values. It’s imperative to do your research before you negotiate a legitimate purchase price. If for some reason you can’t, hundreds of dollars could be paid over and above what the used car is actually worth. This especially applies when you have done your research for a specific car and then you find a different make and model, you like better. You never have to buy the vehicle on the first visit of shopping. In fact, in my opinion the best procedure to follow, is to look, choose, get your information together and form a strategy before you begin the negotiations for the purchase of a used vehicle. A good used vehicle sales person knows this fact and will attempt to sell the vehicle you like on the first visit. They’ll use every trick in the book to get you to buy on the first visit. Even to the extreme of telling a prospective buyer that if you don’t buy right now, someone else who is interested in this vehicle will probably buy the vehicle before you. I can’t tell you how many times I’ve heard that line. In reality, this situation is extremely rare and usually will happen only when a new model is introduced that is exceptionally popular.
Buying a used vehicle is much different than purchasing a new one. New vehicles are usually advertised for about the same price in most dealerships because of so much competition. So, when it comes to buying the used vehicle, without research, it leaves you the buyer, at a disadvantage. If you are in an area where many automobile and truck dealerships are located, they will advertise used vehicles in most newspapers. A problem arises when so many different factors are involved to determine a price on a used vehicle. Here are some of the factors that will create prices of used vehicles tend either to be high or low; mileage(high or low, will increase or decrease the price), year manufactured( for every year a new model is presented, the earlier model will decrease in value), options( more options added on, will increase the value), cleanliness-rust-damage(changes the value, as well) and the most important factor ever to change the value of a used vehicle is, demand. The more popular a certain vehicle is, the more it will cost.
Again, in your research, you’ll find a wholesale price(lowest amount) and a retail price(highest amount). All of the factors I describe that will raise or lower a vehicles final price, have to be factored in. Once you have determined a final figure to work with, plus that will fit your budget, it’s time to negotiate.
When beginning the negotiating, either with a dealership or a private individual, the same strategy should apply. You must first ask the seller what is the asking price? Once the asking price is established, this is when the fun begins. Never agree with the asking price. Ask first, if this is the final asking price, or could the seller do better in lowering the figure? In most cases at a dealership, the sales person will come back with, well, what are you willing to pay? At this point it’s suggested that whatever the sales person gives you as a purchase price, is not the lowest price available. In most dealerships the final purchase price on any vehicle is determined by the Manager of that Department you are dealing with. In any case, if you have done your research, then you have a figure in mind you are willing to pay for this vehicle. My advice, is to counteroffer the sales person’s figure with an amount at least(Two Hundred Dollars US) lower than the figure you have decided you are willing to pay for this particular vehicle.Why? This lower amount allows some room for the sales person to present to his Manager, who will either agree with your offer, or, in most cases will present another purchase price. The next figure should be closer to the figure you are willing to pay. This type of negotiating could go through a few more trips to the Manager, before a realistic figure, close to what you are willing to pay, is obtained. Although this process might seem tedious, eventually you could save a great deal of money by utilizing this method.
Only you can determine what you will be willing to pay for a used vehicle. So, if your price is not obtained, it is entirely up to you what the next phase of your plan should be. If the purchase price is still too high, you have the option to agree and buy the vehicle at their price or you can walk out of the dealership, without making the purchase. Here in the USA, the sales person you worked with, will usually call you the following day. This phone call is to approach the possibility of getting you to return for further negotiations, or to offer a more reasonable figure that is closer to your’s.
- Remember one very important fact. The dealership you are making the purchase from, paid wholesale or less for that vehicle you are interested in. So, never be fooled by whatever excuse they will give you about wanting to sell the vehicle at a much higher price. They have to make a profit to stay in business, but, only at a fair price, not a greedy and excessive price.
When a private sale is being negotiated the complexity of obtaining your purchase price will usually not be as intense. You can either get to your figure much quicker or the person selling the car will tell you, the selling price is firm. When a firm price is encountered, this might be the amount still on loan for this used vehicle. When you go up against a firm price, I would suggest looking for another similar vehicle.
Now, I’ve given you the ammunition to do some used car shopping. It is all up to you, whether you apply these recommendations or not. I hope these hints will help you to obtain a used vehicle at the right price, while saving you money.
Thanks for reading!