Even if you are buying a used car, it is always smart to negotiate the price down to what you want to pay instead of agreeing to the price they quote.
With ongoing slowdown, buying a used car seems to be a much better option as compared to buying a brand new car. However, buying used cars is not as easy as it seems, especially with the ongoing monetary crunch. In such a situation, your negotiation power becomes a deciding factor.
How to Negotiate For a Used Car?
The foremost thing to do when you plan to own a used car is to do some research. Be ready with what you want before you approach a dealer. You can interact with a few dealers through mails or on phone, and inquire about the models, price, etc. Once you are sure as to which car model you want to buy, you can approach the dealership that offers a convenient price.
You will be able to negotiate the price to suit yourself only when you are well-versed with the market condition of the model you are planning to buy. Never offer the exact amount that you are willing to spend. Instead, quote a price which is slightly lower than what you plan. Remember that the price you quote should not be too low. It’s important that the dealer looks at you as a potential customer.
Even if you have cash in hand, never let the dealer know that you are going to pay by cash or what your limit is. If you are planning to buy a pre-owned car by financing, get your loan approved before you choose the vehicle. This will let you know what your limit is, and till where you can stretch the negotiations. Spending a few hours negotiating will surely let you peek in the dealers mind. Let the dealer quote a price, thus creating more options for you to choose from. The onus is on the dealer to convince you for a potentially good deal.
If the dealer quotes an unexpectedly low price, the chances are that there is something fishy about the deal. The car may be priced low either because the dealer is in haste to sell it, or because there are some flaws in the vehicle. Ensure that you do proper research about the particular used car before buying it. There may be a situation wherein the dealer has priced the product low unknowingly, but the chances of you being so lucky are very less, often negligible. Therefore, it is important to probe into the matter, if the price quoted sounds unrealistic.
Never hesitate to walk away; especially, if you feel that you are unnecessarily pressurized or if you feel that the price being quoted is too high. The sales agent is likely to follow you to the door to persuade you. Even if he doesn’t, you don’t need to worry. You can always approach another dealer. In many cases, the sales agent tries to lure you with lots of extras.
You should understand that this luring is just to push you through the deal. Keep in mind, nothing comes for free, so the cost incurred on these extras is likely to be shelled out from your pockets in the form of hidden costs. The sales agent may try to force you into making a hasty decision by making you feel that you are losing on something if you don’t close the deal right then. Don’t fall for such tricks. Be patient and take time in researching, especially the price.
If the dealer quotes a price you are comfortable with, you don’t necessarily have to wrap up the deal there and then. Evaluate all the probabilities and legalities before signing the dotted line. After all the efforts you put in, you surely don’t want to end up in legal tangles. Keep in mind that the most effective bargaining strategy is your ability to walk away. At times, that may seem difficult, especially when tempting deals are put in front of you, but what is the harm in trying.