How to Deal With Used Car Dealers

A car stands as a necessity for a good number of Americans and a luxury for others. People like to get a deal, so a used car fits the budget. However, good preparation is essential when shopping for a used vehicle. While you're looking for an honest bargain, the dealer seeks to make a profit. You can easily find your budget at the mercy of a wily used car dealer unless you head into the process knowing what to expect.

Instructions

1

Shop beforehand through car publications and the dealership website in order to find a specific car in the dealer's stock. Upon arriving, ask for the specific car from the inventory; if it's sold and gone, leave too. Otherwise, the dealer has an opening to show cars that don't suit your needs.

2

Secure financing before reaching the lot. A bank or credit union will offer better loan rates than a salesroom. There's also less chance of any price creep from frivolous add-ons. Cash in hand gives you the power in negotiations, rather than the dealer.

3

Research the actual market and resale price of the car models on your shortlist using a reputable auto pricing site like Edmund's or Kelly Blue Book. Bring a printout with you to the lot that illustrates the pricing in clear language, preferably with a picture. The entry should include the dealer price and private party price. An honest dealer will offer a price near the dealer rate, but aim for the private party rate.

4

Observe oddities and don't be afraid to ask tough questions. If looking at a car on a used lot from a maker that offers certified used models, ask why the car isn't officially certified. Bring out your used car checklist and go through each point. If there's rust under the front seat, demand an explanation or ask for a Carfax report. Take note of body language: an inability to meet your eyes or shifty behavior usually means dishonesty.

5

Keep options open and your mind unattached to any one particular car. Philip Reed and John DiPietro of Edmunds say, "If a dealer thinks you're in love with the car you just test-drove, you'll be in a weak position to negotiate. But if he thinks you might walk away without buying, he'll treat you carefully." A simple walk off the lot for lunch or trip home to think about the purchase first may result in a price drop, especially if the dealer is desperate to make a sale.

6

Allow the dealer to open negotiations and be prepared to undercut his price. The dealer will offer extras or try to push financing in order to raise the price, but don't give in. The dealer may also bring out a closer, a salesperson that is skilled in manipulating a reluctant customer into a sale. Ignore any last-minute diagrams or intimidating documents that show a higher price than you're willing to pay, and only sign when you're good and ready. A handshake means nothing until you've signed a bill of sale.