How to Negotiate for a Certified Used Car

A certified pre-owned (CPO) vehicle includes a warranty backed by the manufacturer. Negotiating the price of one of these vehicles can prove tricky because of the high markup in price. An extended warranty purchased straight from the manufacturer rather than an aftermarket provider is the most expensive you can buy. The dealer also pays to add the warranty to the vehicle, which can increase costs up to or over $2,000 above regular retail pricing. Know where to locate the price differences and which to negotiate from.

Instructions

1

Go to Kelley Blue Book's website. Kelley Blue Book offers values on certified pre-owned cars, which allows you to see the difference between regular and certified retail values. Input your vehicle's year, make and model from the used car menu.

2

Choose "Certified Pre-Owned Value" from the values list. Select the trim level for the car you want pricing for. Read over the options carefully on the proceeding page and pick any additional options that the vehicle has---add the correct vehicle mileage for accurate pricing.

3

Read the price results, which are shown only for the certified pre-owned vehicle. From the lefthand side menu, change your value to "Suggested Retail Value" to determine the price increase for the warranty. Choose "Trade-in Value" from the menu to determine what the dealership probably owns the car for.

4

Conclude a fair offer now that you know all pricing. It is fair to offer $1,000 over the trade-in value and $1,500 for the warranty, as the dealer probably paid more than $1,000 to have the car certified. Print out all of the values from the Kelley Blue Book website for negotiations and be ready to buy if your price is met.

5

Tell the dealer how much you'd like to pay over the trade-in value, which is also known as the wholesale value and is what dealers, auctions and wholesalers base pricing on. Tell the representative how much you'd like to pay for the warranty and use the printout as the basis for your offer. Let the dealer know that you are ready to purchase immediately.

6

Wait while the representative or manager looks into your pricing. The dealer may own the car for more money than the trade-in value before the warranty was added, as the car market fluctuates and sometimes wholesale values change. If you are way off in values, the dealer should show you what he owns the vehicle for.

7

Take the deal if your pricing is accepted. If not, continue negotiating until you can achieve a price that you're happy with. The dealer should be able to back up his own offer if he turns yours down, either by showing you what he owns the vehicle for or by showing you a different value for trade-in figures, such as the NADA Guide. If he shows you a different value, make your offer based off that price.

8

Continue negotiating and be friendly while doing so. Explain that with your figures, you believe you are providing at least $1,000 in profit for the car sale. If the dealer is stubborn or owns the car for too much money, keep shopping.