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Tips on How to Negotiate a Used Car Price

A man being handed a keyfob while sitting in a shiny new car

The sticker price on used cars usually isn't the cheapest price the seller will accept. Whether you're buying from a dealership or a private seller, their main goal is likely to make a profit. This means they will probably try to sell the car for more than it's worth. Unfortunately, some people don't know this, and they pay the asking price. Luckily, savvy buyers like you know better, and Foremost® is here to help you with some negotiating tips.

Here are a few steps to consider.

  1. Find out the market value of the vehicle you want to buy.

    You may want to know exactly how much a dealer will come down on the price of a used car. The answer is, it depends. Several factors, including the year, make and model of the vehicle, along with how much the seller paid for the car will determine how much they can come down.

    As a starting point, you should find the market value of the vehicle you're interested in. Sites like Kelley Blue Book can help with this. All you need to do is enter the year, make and model of the vehicle, along with your ZIP Code, and you'll see what recent buyers in your area have paid for the same vehicle. If you see that people are paying $25,000 for a vehicle and the seller is asking for $30,000, you know you have some room to negotiate.

  2. Consider making your initil offer lower than what you're willing to pay.

    A mistake you can make when negotiating a used car price is immediately telling the seller the maximum amount you're willing to pay. Sellers rarely accept the first offer, much like you aren't accepting their initial number.

    If you tell the seller your max offer right away, they may assume that you're willing to pay more.

  3. Make smart counteroffers.

    The seller likely won't accept your first offer, but you'll have better control over the negotiations if you start lower than your maximum.

    If the seller declines your first offer, they may try to see if they can get you to make a big jump in your offer. Try to be patient during this step.

    You may be tempted to increase your offer significantly to avoid losing the deal all together. However, consider increasing your offer slightly to see how the seller responds, and go from there.

  4. Finalizing the deal.

    Once you get to a price you're happy with, the next thing you need to do is get it in writing. Do not let the seller bamboozle you. Once you get it in writing, you should be good to go.

    Lastly, it is worth mentioning that another negotiation tactic you can use is to pay with cash. This can help because people may have a harder time turning down guaranteed money. Either way, if you follow the tips discussed in this article, we hope you'll having a good chance of getting a deal you're happy with.

Now that you know how to negotiate a used car price, you may be interested in this article that discusses a few other things you should consider when buying a used car.

 

After you make your purchase, the next thing you'll need to do is to buy car insurance. If you want to get a head start on that process, you can get a quote with Foremost today!



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