How to Deal With a Used-Car Salesman

Dealing with a used-car salesman is a necessary evil when you're in the market for a used vehicle. While some used-car salesmen are honest and have your best interests at heart, the mystery surrounding a used-car sale can make it difficult to gauge if you're really getting the best deal possible. The easiest way to deal with the pressure and offers made by a used-car salesman is to complete sufficient research before visiting the dealership.

Instructions

1

Locate vehicles online. Before setting foot on a dealership lot, research used cars for sale in your area by using a website such as AutoTrader.com or Cars.com. These services allow you to search used cars available nationally, and they can also put you in touch with Internet sales managers at each dealership. Contacting an Internet sales manager can save you time and money, as they may provide upfront pricing information without the games usually expected at a dealership.

2

Contact dealerships. First contact may be made via one of the aforementioned websites, by email or by phone. When you contact the dealership, you may find that you and the salesperson have differing agendas. You may have specific questions about the vehicle or price, while the salesperson will be completely focused on getting you to visit the showroom for a test drive. You should meet somewhere in the middle, with the salesperson agreeing to give you pricing and other information while you agree to come in for a test drive and consultation.

3

Research pricing information. Once you've set a test-drive appointment, use a service like Kelley Blue Book (KBB) to determine the fair market value of the vehicle. Used-car dealers pay wholesale prices for used cars, and this figure is close to the fair trade-in value as listed on a service like KBB. Making an offer of $1,500 to $2,000 above the fair trade-in value will provide the dealership with a fair profit and will also offer you savings over the suggested retail price.

4

Visit the lot. Once you determine your preferred vehicles and the amount you want to pay, you can make educated offers at the dealership. After your test drive, make a fair pretax offer based on your KBB research.

5

Negotiate and close the deal. The salesperson may disregard your initial offer and come back with a "first pencil," a price quote that's very high. Used-car salespeople prefer to negotiate down from an artificially high price than negotiate up from a low price. Resist this temptation, countering with an offer that's slightly higher than your first. Tell the salesperson that you have only 30 minutes to agree on a price and that you'll leave if the negotiations stagnate. If a dealership can't negotiate honestly in 30 minutes, they'll probably never offer a fair price.