Sometimes, when you buy a used car, you wind up paying more than the car is worth. This usually happens because you didn’t do enough negotiating. Negotiating for a used car can be tricky, but it’s not impossible. So let’s look at how you can negotiate for a used car and get the best deal possible. Here are a few tips that can help.
Know the Vehicle’s Market Value
Before you go to the dealer, research what similar vehicles are selling for in your area. Check online or ask at local dealerships to get an estimate. This is so you know if your dealer is trying to quote more than what the vehicle is worth. The salesperson may try to tell you the car is worth more than it really is, so don’t trust him until you’ve checked out the market yourself.
Look for Incentives and Rebates
Some manufacturers offer cash-back incentives on certain models at certain times of the year. You can also find special incentives from local dealerships that may give you an edge when negotiating with them. Make sure to ask the dealership if you can benefit from any rebates before you purchase the vehicle.
Get Preapproved Financing Ahead of Time
If you know how much you want to spend, talk to a lender (a traditional bank or credit union) before going to the dealership. That way, when you’re negotiating with salespeople at the dealership, they’ll know what they’re working with — and won’t try to sell you a car that’s more expensive than what they’ve been approved for by their lender (which would make them look bad).
Start Low
Never start off with the highest offer possible — even if you know in advance that this is the only number that will work for the car. Instead, start low and gradually work up from there until you reach an agreement on the price with the seller. This will prevent the seller from thinking they can get more than what the car is worth. If you’re unsure how much similar models go for, ask a used car dealer or check on a price comparison website.
