How to Bargain Prices
You have finally made your research, chose a few models in your price range, had a test drive and have already narrowed your pursuit for a pre-owned car down to one vehicle. It is comfortable, reliable, you enjoy driving it, its price suits your budget perfectly and you feel it to be an ideal car for you when you get in. The only thing left is to pay for the purchase and accelerate off into the sunset. It seems simple by the time you do not consider overpaying (in case you are planning on looking for a new model instead of pre-owned, check out How to Bargain a Great Price on a Car). The exciting fact about pre-owned vehicles is that their prices can vary greatly that allows the buyer to save a lot of money. Regardless of the seller's questions, almost always there is a chance to get away with paying less. This happens due to the lack of exclusivity in used cars in comparison with the new ones. They have gone a lot of miles, were used in rough seasons and what's more essential - their value decreased the moment the original owner drove them off a lot. All of this contributes to bargaining. In the end there is no sense to pay a higher price for a used vehicle.
It is easy to claim you are not going to play sticker price just sitting at home, but when you talk with the seller face-to-face, it is much more difficult. You need to convince him to accept your lower price that is not an easy task. Nevertheless, purchasing a car from a private seller your chances to get reduced price are higher than buying the vehicle from a dealership. If you have to deal with them, follow the instructions and be firm negotiating lower price.
Define Its ValueA pre-owned vehicle costs as much as someone is ready to pay for it. As a result, the very first step in negotiating a reduced price for the next pre-owned car is figuring out what other buyers are offering for it. Check the Kelly Blue Book and learn all the prices.
The Kelly Blue Book is well-known as the premier index of used vehicle values. Just enter all the necessary information about the car you want to buy including the make, model, mileage and production year and you will find all the offers that will definitely help you set a correct valuation. The Blue Book highlights the value of the car in different conditions, in various regions of the country, in your area, etc. Besides, it lists the lowest possible price the dealer can accept.
Apart from the Blue Book you can also go to Edmund's True Market Value calculator. Being almost the same platform it will give you the information about the average price of a particular car throughout a range of categories. This way you will see the expected prices depending on the way they are offered: certified pre-owned from a dealership, non-certified from a dealership or from a private seller.
Having determined the price of the considered car, rank the lowest and highest offers for you to have successful negotiations. The floor offer is your basic bet and should be 5-10% lower than the average selling price of the vehicle. The ceiling value is the extreme maximum you will pay to buy the car you like.
Make an OfferBeing equipped with the floor and ceiling offers you are ready to start negotiating. The minute you come inside the dealership, numerous techniques and various tricks will be used by the sales agents to weaken the strings of your purse. You are sure to be asked about the monthly payout you are ready to give in order to avoid the bottom line price. Besides, they will definitely ask for the maximum value you are ready to spend and will do everything to convince you pay some extra hundred dollars. They are ready to do everything possible and impossible for you to agree to the sticker price. Keep calm and do not pay attention to all those questions. Do not even try to answer them if you wish to see the car you are in love with. Be polite and mention that you do not want to deal with money issues right away. Instead, calm down the sales manager and offer him/her the floor price you have prepared. State that you are ready to take the vehicle off the lot right now in case he/she accepts the value. The chances are huge that he/she will not accept your price, as they are not supposed to do that. Continue negotiating following the next tip.
Make a Cross-ClaimAfter you have turned down the floor offer, the sales agent will provide you with a huge list containing reasons of bigger value of the vehicle. Be confident and firm, do not humor them. Inform that you know what the car is worth. Explain the sales manager that you have visited multiple dealerships and all of them offer the same vehicle so you have a choice. The thing is that you prefer this exact car and allow this particular dealership to be the first in the choice range. In case they disagree to play it that way, you can spend your money in any other place, though at the end they usually do accept your offer. At first the sales agent will go and consult his/her manager. And the first option you will be presented is the optimal offer that is lower than a sticker price. You are also going to hear a long explanation why they cannot reduce the price. As a response you also need to give them a counter offer that is a few hundred dollars higher that the floor offer you have set. Here you should recollect and list all the drawbacks you have found in the vehicle during the test drive.
Exhaust Them until You WinAt this moment the bargain game starts and it is just about who will be the first to wear down the opponent. The sales agent will lower the price and you will slightly raise it by the time there appear two opportunities: either you agree and buy the car at its average price or you will get the ceiling offer.
In case the dealership refuses to accept your ceiling offer, be stiff, stand up and walk away. Inform the salesperson that you have lost a sale and go to other dealerships to buy a vehicle there. Take a card of the manager and write down your number on the back. Tell him/her that they are free to call if they change their decision. Within one or two days you are likely to get a phone call from the seller. In such a way you are going to get your beloved vehicle for the minimum price. If this scheme did not work with one company, go around and find other sellers in your place and do the same. Do not forget that negotiations are tedious and that is a common thing. You are sure to get your hands on a new car only if you stay strong and follow all the instructions without a glimpse of hesitation. As a result you will get a perfect vehicle at a rather competitive price. When a new set of keys is already in your pocket, move on to the initial stage of our Used Vehicle Buying Guide - financing your ride.
A Note on Extra ServicesBuying a pre-owned car through a dealer, you will be forced to corporate with the dealership's insurance and finance officer in order to sign all of your paperwork. Remember that he/she is not a financial officer, but a usual salesperson, though professional and specially trained, who will make you unwillingly buy a set of extra unnecessary and unplanned services, like paint protection, extended warranty, gap coverage and whatever.
Regardless of their words, just buy a car, because you do not need all those additional services they offer. Be wise and turn them down at the very beginning. In addition, if your dealer agreed to perform support services on the car before you purchase it, mind this agreement to be documented in a Due Bill.