Richmond Toyota

How to Negotiate a Used Car

After a consumer has found a used car, inspected it, test driven it, and decided it is the vehicle for them, the next step is the dreaded 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.  There is no reason to avoid this process, though, 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.

Always research first

When researching the vehicle you will find out an array of valuable information.  You must learn what a fair price for a particular vehicle is, and, through research, you can become an expert at the model you would like to buy; this will give you an upper hand in negotiations.  Some possible reasons for a lower sales price 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.  Being knowledgably 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. 

Begining Negotiations

Despite feeling nervous and unsure on the inside, do your best to appear confident and assertive when entering negotiations.  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.   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.

Show interest in other vehicles

Do not ever appear so attached to a car that you will pay anything with it.  Dealers are aware of this, and will almost certainly not back down if this is the case.   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 tale you seriously.

Dealing with the Closer

When negotiations seemed to have reached a dead end with the sales person, the dealership sometimes brings a closer in. 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.

Last minute ‘add-ons’

Dealers often make their sale more profitable by convincing buyers  to purchase add-ons, such as an alarm system, or seat protection.  Be prepared for this beforehand by knowing what you truly want and don’t want.  There will also 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, and refuse to pay for any extras that you did not approve.  Some of these extra expenses may include Documentation Fee, Smog Fee Paid to Seller, Smog Fee Certification, Sales Tax, and License Fees. 

Finalizing 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.

Although negotiations for the price of the vehicle are most important and time consuming, other aspects can also be negotiated, including financing and warranties.  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.