How to Negotiate for a Used Car With a Private Party

There are many times when good negotiation skills will make the difference between getting a good deal and being taken for a ride. The keys to good negotiation are recognizing the power you have in the situation, and being prepared to boldly present your position. When buying a used car from a private party, there are inherent advantages for the buyer. Realizing those advantages and using them shrewdly will ensure that you get the best deal for the vehicle.

Instructions

How to Negotiate

1

Research the vehicle. Besides making sure the vehicle is one that you would like to purchase, researching the vehicle will allow you to provide reasons as to why the price should be lower. Carfax is an online service that provides the history of maintenance on any vehicle serviced in the U.S. The Carfax report should be used in an effective negotiation. A vehicle with a history of damage or one that is in need of repair should cost less than a similar vehicle with a pristine history.

2

Identify the Kelley Blue Book value of the vehicle. The KBB is the most widely recognized tool for appraising used vehicles. In the guide you can choose the vehicle by make, model, trim, additional features, condition and mileage. All of these factors contribute to getting the fairest price.

3

Ask questions. When buying a car from a private party, there are certain details that will give you a better understanding as to how you can buy at the lowest price. Questions such as, "Why are you selling the car?" will allow you a glimpse into the motives of the seller. If the answer is that they believe they can get a better price than they were offered in trade, then you can assume the seller will use the proceeds from the sale to purchase another vehicle. This is important because it speaks to the urgency of the sale. The more eager the seller, the better chance you have of getting the vehicle for a low price.

4

Refrain from showing too much interest. Just as the eagerness of the seller can send signals as to which way the price will be adjusted, so too can the eagerness of you, the buyer. Offering information as to how perfectly the vehicle will fit your needs shifts the power of negotiation to the seller. Saying "I could see how you could fit a lot of groceries in this trunk" versus "This will be perfect for when I go shopping" makes a big difference; the first was a general assessment, the second, an endorsement.

5

Make an offer. The offer should be less than you could afford to pay or are willing to pay. This is in many ways like a game; the object of the game is to get the seller to agree to the lowest price possible. Offering a ridiculously low amount not only will sour the tone of the sale, but will reveal to the seller that the offer is not a serious one. You should also qualify the offer before revealing the terms. An example: "Because this car does not have a moon roof like I was hoping, and it has been in an accident, I can certainly see myself paying (blank) for it." The qualification, or summary, will convey to the seller that you are in charge. You will have stated that this is not exactly what you wanted, but you are willing to purchase it anyway, at a lower price.

6

Expect that your first offer will not be accepted, at least not right away. If you run in to a desperate seller looking to unload the vehicle for any reasonable price, you may get little resistance when you offer a price lower than the KBB listing. For other occasions, where the seller has room to be patient or is particularly savvy, you may have to entertain a counter offer. This is where the research will help. By reminding the owner of the conditions that warrant a lower price as well as offering to buy the vehicle immediately, you put doubt in the mind of the seller about waiting for a better offer.