Negotiating to get a lower price on a car you already own can be tricky – you not only have to overcome the seller’s natural inclination to hold fast to his asking price, but you also have to deal with all sorts of “hidden” costs that can trip you up if you’re not careful.
Get a complete history report from the car dealer before you go bargain hunting. A history report is like getting an extra set of eyes to find out if there are any problems with the car before you buy it. You’ll also get a sense of whether or not the car has been driven a lot, and if it has, how much. The details of the accident, odometer readings, write-off, and so on from the history report can make it easy in knowing if the car is worth it and lowering its price.
1. Don’t be afraid to bargain
Bargaining is not only acceptable but also expected when buying a car, especially used. Most dealers will be eager to get your business and are usually willing to work with you. The trick is to know how and where to do it. The first step is to determine how much you are willing to pay for the car.
Look at all its positive aspects and then go over them again and again in your mind. If the car still looks attractive to you, go ahead and write that price down as your “willing to pay” figure. Now, look at the car from the dealer’s point of view.
Ask yourself if you are indeed willing to pay that amount. If yes, ask if the dealer would be willing to reduce the price a little to make you happy. This is a very important question. The answer will often surprise you.
If it doesn’t, say something like, “Well, since you are willing to sell the car to me at this price, I guess I don’t have much choice, do I?” and then go ahead and write that down as your “actual willing to pay” figure.
Next, take your actual willing-to-pay figure and add to it the cost of all the accessories and optional equipment on the car. This should be easy since you already know what they are. Now, take that total figure and divide it by the number of owners who have owned the vehicle previously.
2. Don’t let the seller know how much you’re willing to pay
The first thing they’ll do is tell you what they think you can afford. If you are on welfare and have no job, you can’t afford a new car, right? Wrong. You can afford a new car if you know how to go about getting one. Tell them you don’t want to pre-approve any price. Tell them you will look at different makes and models and you’ll let them know within a week or 10 days which ones you like and you’ll come back with a final offer. This puts the pressure back on them and they’ll have to drop their price to satisfy you.
If your current vehicle has a fair amount of miles on it, this can be a significant factor in determining the lowest price you can get for your trade-in. And, if you are trading in a high-quality used vehicle, the process of negotiating a price reduction for it can also serve as a great negotiation tool for the car you want to purchase.
3. Be Realistic
Remember, you will not always be able to get the lowest price possible for a car. In many cases, what you really should do is drive off with a car that meets your needs and fits your budget.
Don’t get hung up on the idea of driving around in a vehicle that is far below what you paid. Instead, find out what other people are willing to pay for a car that’s in nearly perfect condition and use that as a benchmark when you are trying to reach a deal with the dealer.
In conclusion, there are several tips that can be used to lower the price of a used car. First, if you are purchasing a used car, make sure to take it to a mechanic to make sure it is safe and in good condition. Second, check the vehicle history report to make sure there are no known problems with the vehicle. Third, negotiate the price of the vehicle with the seller.