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Negotiating a Pre-Owned Vehicle

Once a used car buyer selects a vehicle they are interested in, the next step is negotiations.  This is usually consumer’s least favorite part of the car buying process and many feel uncomfortable doing this. Some are so uncomfortable with it that they end up paying way too much for their used vehicle.  Negotiations are a must, and if you do your research, stick to a budget, be assertive, and are willing to walk away if the deal is not acceptable, you will get a used car for a fair price.  Although a private seller may not have as much experience negotiating as a dealer does, they both want the same thing – to sell the vehicle at the highest price possible.

Research before going to the lot

You can not persuade the dealer to lower the price of a used car unless you have a reason why the price is to high.  Some possible reasons may be you had the used car inspected, and it needs some work, the condition of the vehicles body or the paint job doesn't justify the price, or you have checked the market yourself and found lower prices elsewhere.  This is why you must do research and know the value of the used car you're considering.  This will make you a better negotiator.  You can find out the value of the vehicle through online listings, and local ads and classifieds.  If you are aware the dealer is asking way more for the used car then it is worth, he will not be able to convince you to buy it at that price. 

Opening the Offer

When you enter negotiations do your best to be confident and assertive, no matter how you are feeling on the inside.  It is best to find a salesperson you feel comfortable with, and know that this will likely not be a quick process. Be prepared to spend an hour or more negotiating for your used car.  Start low, but within the ballpark, and ignore the sticker price.   As the price works its way up, stay within a reasonable price range and don't over-extend yourself.   If the deal is not going your way, don’t give up.  Always stay calm, look at the dealer, and restate your offer.   Don't be distracted when negotiating, so leave the kids at home.  If you begin to get tired, hungry, or stressed, leave and come back later, you should have complete mental focus.  When the price has reached beyond your budget and you are ready to turn down a dealers offer, make them a final offer.  Confidently state that any other counter offer is unacceptable.  Although you can tell the dealer to "Take it or leave it", always leave the door open for them to come back to you later. Tell them to call you if they can do a better deal on this used car.

Don’t act too attached one vehicle

If the dealer knows you are set on a particular used car, he is not as likely to back down.   If you act in a way that makes him think you might walk away without buying, he will treat you carefully. He will offer his best price if he feels he might have a solid sale right then and there.  While the salesman is milling over your offer, or taking it to a manger, take a little walk.  Go look at other cars, as you will show that you would consider other options. At the same time, if you are too casual and disinterested, the dealer will not take you seriously.

When the dealership brings in the Closer

In some dealerships, a closer is brought in when the salesperson can't make a deal. Usually, the closer tries for a few hundred dollars extra in the deal. Or, he tries to get the customer to agree to the last offer by the dealership. While some may apply pressure, most will attempt to make a deal by reasoning with a customer.  Be aware of them getting you to buy additional options, and do not be tricked by a low monthly price.  This is their way of making more money on a used car.

Extra Fees

There will always be added fees beyond the actual price of the used car.  Before you sign anything, make sure you know what the ‘out the door’ price is.  When reading the contract question any fees that you do not understand.  Some of these extra expenses may include Documentation Fee, Smog Fee Paid to Seller, Smog Fee Certification, Sales Tax, and License Fees. 

Closing the Deal

The deal is not finalized until all of the papers are signed, and several things need to happen before this happens.  You may need to show proof of insurance. Then, you need to review and sign the contract and several related documents. Finally, you may have to deal with last-minute attempts to sell you extra services.  Warranties must be dealt with on the used car, the salesman will likely attempt one last time for add-ons, and ask about an extended warranty.

Do not be afraid to ask the dealer to negotiate something beyond the price of the car, including financing and warranties.  There are no specific rules about what can or cannot be negotiated, so it does not hurt to ask.  Negotiating for a used car does not have to be a grueling experience. With the right preparation and a few simple techniques, negotiating can be fun and exciting. And if you make a good deal, it gives you a great sense of satisfaction knowing what a good deal you got on your used car.