How to Negotiate the Best Price at a Used Car Dealership
Posted Thursday, Apr 20, 2023
Let’s say you have found the car that you want to buy and want to talk to the seller about lowering the price. Well, it might seem like an uphill battle, but it can help if you learn how to negotiate the best price at a used car dealership.
Negotiating for a better price might seem scary at first, but it isn’t. All you need to do is go in with a clear plan. If you have done your homework and managed your expectations, it can be a smooth experience for you.
Since doing your research is a huge part of getting a better deal, we are glad you are here to learn! So, here are some tips that can help you get a good deal on a used car.
8 Tips for Getting the Best Price at a Used Car Dealership
1. Doing Research: Get the Number You Want to Pay
When you are buying a used car, you need to make sure to do your research properly so that you have all the solid information you need for the negotiations.
The first step is to look up the current value of the car in the market. It can also be helpful to look at what other buyers paid for the particular used car you want. There are pricing guides that can help you determine the possible price. Having this knowledge from a third-party, reliable source will give you the confidence you need to negotiate properly.
2. Getting Pre-Approved for Financing Can Help
When you get pre-approved for car loans before walking into the used car dealership, it can help you out more than you might think. Pre-approval can help you stick to the budget; you can get it from online lenders or the bank. Plus, shopping around for reasonable interest rates can really help you get an idea of the expected expenses you will pay.
During the negotiation, the seller will be aware that you have a loan that you can turn to. This might make them more inclined to offer in-house financing options that come with better rates or terms than the pre-approved offer.
3. Try the Trade-In Option
If you already have a car that you are looking to replace, you can get a better price for a used car if you consider the trade-in option. However, make sure to get an estimate for the car you have before you go to the car dealership. Manage your expectations by being honest with yourself about the car’s condition. Even minor damage can impact the value of your car.
Consider the following items since they can impact the car’s value:
- Body alterations
- Scratches on the tires
- Paint dents or chips
- Air conditioning or heating problems
- Worn-out or stained seats
- Problems with electronics
- Title issues
4. Wait Till Month’s End
One top tip is to wait until the month is over before going to the car dealer. In some cases, sellers have to sell a specific number of cars until the end of the month or quarter. So, if you show up on August 28th, you might end up getting a better price than if you had arrived on August 1st. While this isn’t a truly foolproof plan, it might help.
5. Price over Payment
Dealers often try to focus on lower monthly payments to attract customers into paying more than they should. Saving money, in the long run, is much better than lower monthly payments. Try and push to get an overall lower price.
Lower monthly payments will result in you paying for much longer. It can actually end up costing you way more when you think of the interest rate. Plus, the car will continue to depreciate, which means you might just get the worst return on your investment.
6. Starting with the Lowest Price
The first offer you make to the car dealer is to give out a number lower than you want to go. This doesn’t mean you give an unreasonable number. You want to show the car seller that you actually know what you are talking about.
Starting with offers that are at the lower end of the budget while taking your research into consideration will hopefully get you a counteroffer that you can pay.
7. Working as a Team
If you are going to the car dealership with a friend, family member, or significant other, ensure that all parties are on the same page. Outline the negotiation strategy and decide the best price range you are willing to pay. You should also put a maximum cap that you aren’t willing to go over.
Questioning or arguing with each other in front of sellers will definitely impact the deal.
8. Don’t Rush Into a Contract
It is definitely alright to think about the counteroffer you get. Buying a used car is a big decision, even if you are negotiating for a used car. Make sure to take the time to inspect every part of the car, check its history, go over the documents, and then make the decision.
However, don’t wait too long! If there are other potential buyers vying to get the car, you might lose out.
Try Inside Car Guys! They have a huge inventory where you will find the best-used cars, and they offer in-house financing options too. Now that you know how to negotiate the best price at a used car dealership, there is nothing to worry about.
