How to Negotiate a Used Car Deal

Buying a used car can be a daunting task. Negotiating the asking price can be even more exhausting. But before breaking out in a cold sweat or accepting defeat and purchasing a car at asking price, remember that knowledge is power. Keep in mind that most dealerships expect a little negotiating to take place during a used car deal. A car dealer is used to negotiating on a daily basis, so it is important to practice and to become knowledgeable before settling on a price.

Instructions

1

Decide on a price range and financing. A price range can be established by how much you have in savings to pay for the car and down payment or how much the bank is willing to loan.

2

Find a car. Read "Consumer Reports," to get an idea about which cars are safe, reliable, and fit into your price range. Ideally, you should have one or two different cars in mind.

3

Know the market value. The market value is the average price for the car. Good resources for this information are "Kelly's Blue Book" or Edmunds.com.

4

Comparison shop. Visit local dealers that have the car in stock. Compare past maintenance records, number of miles on the cars and prices.

5

Decide on a car. If multiple dealerships are selling the same make and model, check to see which one is in the best condition. It is important that the car has low miles and as few accidents or repairs as possible. UsedCarAdvisor.com provides this tip: On average, a car adds 15,000 miles per year. Therefore, if the car is five years old, it should have approximately 75,000 miles.

Also, have the dealer provide a Carfax report; this report provides information on any accidents or repairs the car has had.

6

State your readiness to buy. Once you've decided this is the right car for your needs and budget, approach the salesperson and indicate that you are ready to make an offer. It is important that he knows you're serious and ready to make the purchase.

7

Make an offer. It is recommended that you offer 15 percent below the asking price. Most dealerships price the car at 20 percent above what they paid for it. Share this fact with the salesperson so he knows you're not going to be tricked into paying the high markup.

8

Wait for the counteroffer. The salesperson might have to talk over the negotiation with a manager before agreeing upon the final price.

9

Consider the offer. It is doubtful the salesperson will flat-out reject the offer. Instead, he might offer "add-ons." These are additional features, such as free oil changes or car washing for a year, extended warranties or anti-theft devices. While these offers might seem tempting, they are mere distractions to get you to pay the asking price.

10

Be prepared to walk away. Think over the offer carefully and know what it entails before signing.