Buying a used car makes great financial sense, but knowing how to bargain for one substantially increases the savings and makes the decision even smarter. Why throw money away when knowing a few essentials on how to bargain for a used car can help you save?
- Determine what you can afford to pay before actively shopping for a used car. Look at your monthly budget and be brutal. Factor in insurance costs as well. Once you know what is comfortably affordable, don’t change that number. Cars come and go, extra car features are often over rated, but payments go on and on.
- Determine a realistic current market value price for the models in which you are interested. Comparison price online for the same model, similar features and mileage. Also check out that model’s value in Kelley’s Blue Book. Keep a file folder in which to collect all the printouts and other information.
- Appear confident, not anxious, when approaching car salesmen. Let them know you have done your research. Go into a dealership after you’ve had a meal, feel good, and are dressed in business casual garb.
- Never tell the salesmen what you can afford. In fact, if asked, always low ball your price range substantially.
- Insist on a test drive. Once you are in the vehicle, carefully check all features to make sure they work. If they don’t, make a note in a small notebook kept in a pocket. When test driving, listen carefully for any noises, be sensitive to any driving issues, and also make note of these. All of the flaws can be used in negotiation either for a lower price or for free repair before taking ownership.
- Offer 15% below the asking price. Remember, the number on the invoice is negotiable. Be firm. If the counter offer is way too high, say calmly, “That’s not workable,” and then stay silent. Use body language to show that the counter offer is offensive. Frown, shake your head, or put your calculator away, but stay calm and cool. You may need to come up in your offer, but they don’t need to know that.
- If the salesman says he cannot possibly meet your counter offer after a few volleys, walk away. Salesmen know that if you walk out of the door, chances are the sale will die. If he suddenly discovers he can come down a bit, fine. If not, the world is full of cars.
- Never accept a deal the day it is offered, even if it’s a fairly decent one. Go home and fax the deal to at least three other dealerships with a note saying that anyone who can beat those numbers has a sale. You very well may get a positive response, but if not, then you can still go back to the original dealership.
- Before signing papers on a sale, check CarFax to see the collision history of the prospective car. Also, have a trusted mechanic look it over.
Car buying is always stressful, but the more information you have, the better off you will be. Even more importantly, keep in mind that the “perfect” car has a lot of clones.
- How to Bargain for a New Car?
- How Much Does a Car Salesman Make?
- What Is Invoice Price On A Car?
- How Much Do Car Salesmen Make?
- Used Car Buying FAQs
