Negotiating Tips in Used Car Purchases

Buying a used car can be a harrowing experience. In addition to the uncertainty of the quality of the vehicle, you also have to go through the ordeal of dealing with a sometimes high-pressure salesperson. By doing a little work before you visit the used car dealership and by following a few simple tips, you can make the experience less unpleasant and even gain the upper hand in the negotiations.

Know the True Market Value

To negotiate the best price, you first need to determine the true market value of the vehicles you are interested in buying. Websites such as KellyBlueBook.com can give you the wholesale price, which is the price offered by a dealer at trade-in; the retail price, which is the price the dealer will charge for a vehicle and the loan price, which is the purchase price minus a 20 percent loan down payment.

Present Yourself Well

Present yourself well. If you come to the used car dealership dressed in torn jeans or with a three day's growth of beard, the salesperson may not treat you with as much respect and may think she has the upper hand. You don't have to wear a suit; a business causal ensemble will suffice. Also give yourself plenty of time so that you aren't pressured into making a hasty decision.

Keep a Poker Face

When you finally come across the car you want, don't let the salesperson know how much you want it. The more emotional your reaction, the more the salesperson thinks he can get for the car. Rather than point out the things you like about the car, mention what you don't like, such as the absence of a CD player or a slight tear in the upholstery.

Just Say No

Never accept the first offer from the salesperson. The salesperson's initial offer will always be more than what she can actually sell the car for. When you refuse the offer, present a counteroffer that is somewhere between the asking price and your desired purchase price. You have now established the boundaries for negotiation.

Set a Time Frame

Although you should not actually be in a hurry, set a time frame for the negotiation up front to get the salesperson to move quickly. Tell him you have 30 minutes to get the deal done, and make a show of setting the alarm on your watch. If you're financing the vehicle, have your bank or credit union approve the financing ahead of time to show that you are ready to make a deal and to save you the additional haggling.