How to Negotiate When Buying a used Car

Buying a car is a big financial step. Of course, it’s something to be proud of, but still, you can’t deny that it’s going to put a dent in your finances. As such, your aim should be to get the best car for the money you’re about to spend.

So, how can you do this? By negotiating well. Negotiation holds the key to what kind of car you drive away with at the end of the day, at the best possible price.

Here are some tips that can help you get the car you’re looking for at the right cost.

Do your research first

• You don’t want to walk into a used car dealership without knowing anything about what you’re going to buy. Look at the various cars available with various dealers and decide on the one you want. You can get this information online or by making a few phone calls.
• If you already have a car in mind, narrow down on which variant you want. Find out about all the accessories you need and those you don’t need.
• Next, determine how much you want to spend on the car. If you’re planning on taking a loan, determine how much down payment you can offer and how much you can afford to repay each month.

The car’s price must be your top priority

• The next thing to do is to fix your budget. And we mean fix it. Find out how much you can spend at the most and draw a line. No matter what happens, your budget should not increase.
• The reason why this is important is that your car salesperson will try his best to oversell the car. He’ll throw in a few fancy words to make the car sound better than it is. Don’t fall for this.
• Another reason why the price must be your topmost priority is so that you can focus on it and not get side-tracked by other things. Accessories and other things shouldn’t be your first priority.
• If you already have a car, find out how much you can get if you sell it to them or trade it for the new one. Start with the price negotiation and then move on to the other aspects of the car.

Play to your strengths

Start low and go steady

• The main purpose of a negotiation is to get the best price. Keep in mind that the seller is looking for the same. You should have a price range in mind.
• If you see a car you like you’re asked to make an offer, go with the lower end of your price range. Or if the dealer quotes you a high price, you counter it with a low proposal.
• It’s basically a slow dance till you reach a price you both agree on. Don’t make sudden jumps. Go gradually up from the low end of your price range. When you quote a price, you should also back it up with a justification.

Use competitor prices to get what you’re looking for

• Research is important, as we’ve already seen above. Find out the rates being charged by various dealers in your area. Find one that’s closest to your budget and use it to negotiate with the dealership of your choice.
• This may take some time. But, if the seller sees that you’re serious about buying the car right away, they may agree to match the price of their competitors. This way, you both win. You get the car at your price and the seller gets a sale done for the day.

Take it slow and stay focused

• Negotiating takes a bit of patience. If you want to save money, you should be willing to wait it out. It can take days to reach a mutually satisfying agreement.
• And while you wait to get the deal done, stay on track. Don’t lose your focus. The seller may talk about various other things to sway you away from talking about the price. Or he may offer freebies to justify his price. It’s easy to give in when you hear you’re getting free stuff. But they may not be of much use to you. So, stay focussed and keep negotiating the price.

Get your deal in writing

If you do manage to get the car at your price, make sure you get it in writing from the dealership. Don’t simply take their word for it. Putting it down on paper will serve as proof at the time of sale.

Don’t be afraid to walk away

Now, if the negotiations are leading to a fruitful compromise, don’t be afraid to close the talks with the dealer. It’s perfectly okay to end the negotiation and start afresh with another dealership. In many cases, the dealer might agree to your price when they realise that you’re willing to take your business elsewhere.

And if you do go to another dealership, be prepared to do this process all over again. It may take a bit of your time and effort. But in the end, it’s going to save quite a bit of money. So, we’d say it’s worth it.

Now that you know how you can get a great deal on a used car, use these points to your advantage. Remember, never go unprepared for a negotiation. Research, get your information, cover your bases, and put on your best negotiation face on. Good luck.