Used Car
These Used Car buying tips can save many hundreds and even thousands of dollars. Americans buy more used cars than they do the new, and this number has increased during these difficult economic times as people are holding onto their money. Will you be paying too much for that used car? It is the ever present, nagging doubt in the mind of every car buyer.
The car is your second most expensive item after your house and the process of purchasing a vehicle can be intimidating. However, good hagglers can reward themselves on average 10 to 15 percent on this large purchase by utilizing these used car buying tips.
The idea is to have an idea of the process and the desire to experience the heady excitement of the used car market place. The first important rule is to get the salesman to name a price. Never throw a price at him first, you may be starting too high. Once you state an amount, you can’t go lower. The salesman’s price will often be much lower that the sticker price, so “hide your hole card” until the “showdown”. Time is on your side. The game cannot begin until the salesman gives you a price.
Make your counter offer, and name drop a reputable price guide such as Blue Book, Edmunds, Black Book, Red Book, etc. Dealers are used to that. The old-timers who have been around since before the Internet may miss the times when customers were clueless. But some customers still have no idea. Put them on notice that you’ve done your homework. It will accelerate the process. Most salesmen will poo-poo the accuracy of price guides, but it puts them on the defensive. Bring a friend “wingman” to sow doubt in the minds of the sales staff. This friend will be unfailingly negative about everything. The car is too old, doesn’t get good enough mileage, he likes better the other cars you’ve looked at, too expensive, etc.
Don’t sit in the sales cubicle. A familiar controlling tactic of the sales staff is to leave you sitting while they go talk to the “sales manager”. It’s believed that the longer you stay in the showroom the more interested you are. When the salesman leaves, get up and leave too. Go to the restroom or back onto the lot looking at other vehicles.
No matter what info the salesman returns with, leave the dealership. Never finalize the used car deal on your first visit. Make sure you leave your phone number, if you are interested. The salesman WILL call you with a better deal, probably two or three times before you get home. Always shop several used car dealers, and let each one know about the others. Competition is cut-throat, and you don’t want to “fall in love” with any used car. Shopping around will give you a better idea of car values also.
When you are finally prepared to make your opening bid, give several good reasons why you’re offering less, state your amount, then shut up. Don’t weaken your position by yammering on and shuffling your feet. Look him dead in the eye, give him your price…and the next person who speaks, loses. He will either accept or make a counter offer after leaving you again for the sales manager.
Never accept the dealer’s first counter offer. Negotiation for most people is uncomfortable, and they would like it to end quickly. But, if you want to save hundreds even thousands of dollars, you will be strong and make another counter of a smaller amount (if he comes down by $1,000, you go up $500), with more reasons (“tight budget”) and encouragement (“if you can do it, we’ll take care of this right away”). You have to convince the salesman that your will is as strong as his.
Don’t be swayed when the poor salesman says that he’ll be losing money on the deal. Usually, this is a negotiating ploy. For example, if you’re dealing for a “certified” vehicle that has been serviced to meet manufacturer’s requirements, the salesman may tell you that it “costs” so many hundreds of dollars. The truth is that the servicing was done by “in house” mechanics who were on the clock anyway.
Therefore, it is important that you have a maximum price established in your mind before going onto the lot. If the dealer’s final price is a budget buster, thank him and walk away. Always consider your budget and not the dealer’s.
Timing helps. Shopping a couple of days before the end of the month will give you an advantage. Dealers like to close the books every month, and save insurance for their “floor plan”. Used cars that have been taking up space for a while are considered “failures” and “eye-sores”. Dealers are anxious to unload them. Many dealers now provide Carfax vehicle history reports to examine. This report includes the date that the used car arrived at the dealer – valuable information for a buyer. “Hey Jim, I see you’ve had this vehicle for two months. Do you want to get it off the lot?”
People are actually surprised when they’ve negotiated an acceptable deal on their own behalf, and amazed by how much can be accomplished when they’ve become genuinely involved in the transaction. The feeling of empowerment is real.
A handy tool offered by Edmunds is “True Market Value (TMV)” which gives you the average price that consumers are paying for a particular type of used car. Car dealerships around the country provide Edmunds with their selling prices, and Edmunds crunches the numbers for the average. If you can beat the “average”, you should feel good!
As in any type of negotiation, a “back up plan” can be very useful If you find yourself close to a price you believe to be satisfactory, but just can’t convince the dealership to come down any more, here’s another tactic. Instead of striving to get the car for less money, try to get “more car” for the money by asking for extras like the latest floor mats or new tires, a better stereo or an enhanced warranty. Make certain the extras are items you actually want and need.
If, you still can’t imagine yourself parading into a used car dealership and performing a bit of theatrics in order to whittle down the price of a used vehicle, then Internet buying may be your ticket. You can still realize the benefits of negotiating the price, but you will be doing it online or by phone, a less nervy approach than the in-your-face “showdown” that many people would rather avoid.
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