Negotiating Car Price: Tips for Used Car Buying

Buying a used car is often considered part art, part science. The strongest bargaining position is the ability to walk away, but with hot deals sometimes that's hard to do. Even so, some sound negotiating could help you lock down a better price on a great pre-owned vehicle.

Check Pricing on Comparable Cars
Probably the most important tip for negotiating car price is to come in with a good idea of the car's actual value. In some cases the seller may have underpriced the car, either purposely because they want to sell it fast or because it is flawed in some way, or they may have underpriced it unknowingly. Do your research before you talk to the seller! That way you will know if you have to probe to find out why the price is so low or if you have to negotiate the price down because the seller is unrealistic. Finding the Blue Book price is easy, but you also need to find out what comparable cars are selling for in your area since the Blue Book price is not the only authority.

Research the Car's History
Once you've narrowed down your search and you're ready to begin negotiating car price, focus on maintenance and inspection information about the car. One of the surest ways to blow a deal is to enter that negotiation without a solid overview of the vehicle's history. Experts generally recommend having the car checked out by someone you trust before you ever pull up a chair to begin wrangling over price. Running a background check on the make, model and VIN can save you thousands of dollars down the line by helping you avoid the lemons.

Whether you are buying from a private seller or from a dealer, there are usually other points that you can negotiate on:

• Let the seller know you have cash in hand and be sure to have your limit firmly in mind, just don't tell the seller what it is!
• If you don't have cash, get pre-approved for financing so you know your limit.
• Make an offer a bit lower than you think the car is worth but not too low or you won't look like a serious buyer.
• Once the seller reaches their absolute rock bottom price, if it's a price you are comfortable with, don't jump at it right away. Tell them you might consider that if they have anything extra they're willing to throw in.
• If you're at a car dealership, wait until they bring in the "manager" or closer to improve the deal.
• Once you reach a price you're willing to pay, make sure you wrap up the transaction properly. And if the price doesn't work for you, walk away. There are plenty of other cars out there!