Negotiating Strategies for Buying a Used Car

Buying a used car from a salesman works in much the same way as it does when buying a new car. You need to prepare to negotiate in order to obtain the best price for that car. There are some important differences too including dealer markup and price, information that can spell the difference between obtaining a great deal or being taken for a ride.

Research first -- Unlike new cars, the price you pay for a new car can vary widely. That's because manufacturers set a suggested sticker price for new cars while prices of used cars can fluctuate. That also means conducting extensive research first by visiting Kelley Blue Book's site at kbb.com to uncover that information. Plug in as much information about the vehicle that you know to get a price that is close to what the dealer might charge. You'll also find out what the car might retail for if sold privately. Expect to pay somewhere between the private price and the dealer price for the car.

Shop around -- What causes consumers the most problems is not shopping around. It isn't wrong for you to settle with one dealer, but you could miss out on a better deal if you don't explore your options locally. You probably prefer a dealer over a private party, given that the former may offer a warranty and the latter will be selling to you a car "as is." Still, there are many places for you to shop with some offering a better price, a better warranty or both. Make sure you weigh each factor collectively before arriving at your purchase decision.

Consider your trade in -- Not all used car dealers welcome a trade, but if you car is in good shape and is a desirable model, then you may have a negotiation tool at your disposal. That means ensuring that you get both the best price for your current car as well as for the car you want to buy. Again, use Kelley Blue Book to help you identify the price of your current car. Make allowances for mileage, interior and exterior condition, and aftermarket add ons such as a rear spoiler, a set of aluminum-alloy wheels or a custom grille.

Negotiate from strength -- Once you have a price in mind, then stick with it. Your firmness will enable you to command the best deal and to drive off in a new ride. If the salesperson refuses your offer, then be prepared to leave. Just your threat of leaving can have him singing another tune, realizing that his chance at a sale and a profit will leave with you. Your commission may be smaller, but he'll still make money, but only if he closes the deal. No deal means no dollars!

As with any deal-making, you'll want to ensure that you dot your "i's" and cross your "t's" as certain expenses may not be known. Those expenses include a sales tax, a transfer fee, license or tag, and other possible costs. Your insurance costs may change too.

Matthew C. Keegan is editor and publisher of "Auto Trends Magazine." Matt is also a contributing writer for Andy's Auto Sport and affiliated websites, an aftermarket supplier of quality auto parts including Flowmaster Exhaust and Injen Intakes.

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