3 Tips for Negotiating Used Car Prices
So you’re interested in buying a pre-owned car, and you’re getting ready to explore Buy Here Pay Here in Ohio…
There are a few things you should know before you start your mission. Here are three strategies that will help you when it comes time to negotiate pricing.
Do Your Research
First create a list of vehicles that you’re interested in. If you know you want a sedan with great fuel economy, search online to find the best models that are available.
After you’ve narrowed down a list of the ones you might be interested in, look up their true market values. You can use a resource like Kelley Blue Book to get a good idea of how much you should pay for a specific used model.
When you go to the dealership, having this information will make it easy to know when a price is too much. Remember to also take high mileage, wear, etc. into account when you’re negotiating.
While you’re at it, you should also research your current vehicle to determine how much it’s worth. That way you won’t unknowingly accept a low offer from the dealer.
And finally, get a clear idea of the current financing rates. Whether you’re going to finance through your own bank or credit union or work with the dealership, it’s important to know the going rates.
Figure out what kind of numbers you should expect based on your current finances, credit, and the percentages that lenders are offering.
Make an Offer and Stick to It
The negotiating process actually shouldn’t be a ton of back and forth. You know how much you should pay for the vehicle, so you offer the dealer that much.
If they come back with numbers that are higher, politely decline their offer and stick to your original figure.
You have to be ready to walk away if necessary. It can be easy to get hyper-focused on a particular model because you’re excited about a new car, and you’re already at the dealership.
But keep in mind that there are plenty of used cars available, especially right now due to the economy. You don’t want to pay more than you should for a vehicle, so be ready to say: “Thanks, but no thanks.”
Turn Down the Bells and Whistles
After you’ve negotiated a good price, it’s pretty easy for that figure to creep back up if you start agreeing to extras.
Add-ons like extended warranties and accessories can land you with a much higher total cost than you ever planned on paying.
So keep your cool even after the price of the car has been determined. You still have a ways to go. Dealers may be particularly interested in getting you to purchase additional features if you’ve agreed on a fairly low vehicle price.
Consider each option carefully and politely decline unless you think that something is absolutely essential.