HOW CAN YOU NEGOTIATE THE PRICE FOR A USED CAR?
Knowledge is Power
You should believe it that in the art of negotiation, knowledge is real power. In a car buying, the salesman of the car has the most experience. When the car buyers walk in and talk to the dealer, they ask your budget and car choice, then refer you to a particular salesperson.
Here, the salesman knows everything but never gives you the information that can help the buyer. Information like how much the vehicle cost the dealership, how low they can sell it, or what is the real value of this vehicle.
Who do you think going to win the deal? The dealer of course because he is the one with all the information.
Here you need to do two things. Never tells the dealer about your final budget, and for what exactly you are looking. The second is to get knowledge about the vehicle you want to buy.
Know how dealer make their money
When you are going to buy a car or talking to a dealer, you need to know that they make money only in three ways.
- They surely make money on the front end of the purchase by selling the car for more than they have bought
- They also can make money on the back end, by selling you extra things like financing, extended warranties, rustproofing, etc.
- They mostly include the trade-in value; they usually make money on the difference between what they get when selling, and what they pay for your car.
Most car dealers make money focusing on 1st point. When you buy a car and start negotiating always keep in mind the trade-in value and financing especially in calculating the final price of the vehicle.
How to negotiate for a car
Buy a vehicle that is 2 to 3 years old. The vehicles that are three years old still have a shine, look nice, and dont have any significant problems. The important thing is the new car wholesale value can down up to 45% after three years.
Read consumer reports
The consumer auto reports annual issue comes out every year and has a used car section, in which we have a list of most reliable and worst cars and frequency-of-repair records for recent models. This information can help you to make a list of the used car that you should check out.
Fine tune your estimate
Before buying a vehicle, you need to find the price of the car in your area that you want to buy.
Now you know the retail price and going price of the vehicle in your area. You also have some auto loans with competitive rate lined up. You can now step into a dealership with a set walking price. If the dealer refuses to meet the price, you know that you are walking away.
If you are shopping as a couple, then make sure that when one person gets up to walk, the other gets up too.
Make an offer
Most dealers build a 20% gross margin into used cars asking price. Only, it means they are asking 20% more than they paid for it. So offer 15% below the asking price. Wait for the salesman to speak.
Dont let obligations get to you. Remember that this is a business, you want to buy a car, and they want to sell.
Be ready to walk away
While you are trying negotiation, be prepared to walk away. You need to be flexible in your choice. Never attach to one vehicle.
If you want to prevent your time or desire to avoid all these difficulties you can get help buying a car. Car buying consultant can help you to get a best-used car in perfect condition.
They also can find you a car according to your need and requirement. The consultant can also help you to inspect the car and to negotiate the price. Once the payment is made, they will also help you in documentation or ownership.