how much can you negotiate on a used car reddit

‘If you are ringing around thinking you’ll get £1,000 off a car you are wasting your time and ours.’, ‘Car sales guys usually get a hard time,’ explains forum user Trade Vet. ‘Don’t always expect us to round your new car payment down to the nearest hundred pounds,’ he said. So you may be wondering: Can you negotiate the price on a certified pre-owned vehicle? There isn’t a set amount that you can negotiate a used car for. There’s a common misconception that dealers are ‘out to get’ customers and starting off with that in mind will set the deal up to fail. New cars take a much larger depreciation hit than used ones. BMW reveals latest iDrive generation ahead of its first appearance on new electric models, Car finance new business fell by 35 per cent in January, latest figures show, More and more people are buying online before trying – and that includes cars, Mazda UK boss ‘not convinced’ that full online sales are commercially viable or right for the customer, Horsham Car Centre forced to close after 40 years as pandemic makes lack of business unsustainable, Peter Vardy helps send staff on staycation with campers available for them to book, The Newcomers: Here are the 10 electric car brands coming to a forecourt near you soon, How many car dealerships does each manufacturer have in the UK? They'll also be touching up some minor cosmetic issues (paint scratch, problem with the sun visor, etc). Make sure you look into the typical sales price for the cars you want. Although you aren’t buying a new car, you can negotiate the price of the car just the same. ‘Car sales guys usually get a hard time,’ explains forum user, Used car dealers are more than up for a deal on the cars they are selling, but don’t try and pull the wool over their eyes by making up faults, says forum users, There are some general rules to follow, says Car Dealer forum user. If you plan on buying a used car, paying in cash can also give you more leverage to negotiate on the price of the vehicle. Found a car for say $11K. Keep reading for the answer. I have a co worker who spent 6 months looking for a used car, a specific one he wanted. Not all car dealers are the same.’, Used car prices could drop seven per cent in next 12 months and it may take three years to get back to normal, The used car prices that have risen the most during lockdown, according to pricing experts. New, never pay msrp. ‘If I have a car advertised at £8,995 and you only have £8,500 to spend then, depending on days in stock and general stock profile of the business at the time, we should be able to do something. With the internet, comparing prices and models is so much faster. Many factors can influence the deal you’re negotiating. This would be an interesting read for you. Definitely appreciate the advice I got here, which probably spared me a stressful week of trying to haggle thousands of dollars off a list price. But let's do it both ways or not use it at all. 3. Basically if they are all in the same price range, I guess it's just finding the nicest one in that price range with the color and options you want. Thanks! ‘There is nothing worse than a customer trying to make up faults to get money off the car they’re looking at.’. Dealers will prefer you’re honest about how much you’ve got to spend on the car you’re looking to buy instead of making up excuses as to why you think it’s worth less. ‘Don’t be a dreamer,’ said BHM. Car Dealer Magazine forum user Awc1000 said: ‘When it comes to part exes, bring everything you have for the car on first viewing – not handover. Every used car buyer wants a good deal on their part exchange, but few will put in the legwork to get it ready for sale. Come back and says that's a special price they'll honor. ‘Do not waste people’s time, be confident and calm, and friendly – and do not make faults up. 1. How much the used car will be sold to the buyer total. Don’t Shop in a Hurry. To make sure that you don’t save on one side of the deal only to lose on the other, tell the dealer you want to keep it simple and discuss your purchase independently from your trade-in. Sign up to Car Dealer's daily news email updates, ‘Just be honest,’ said forum user and used car dealer, . I would think that I should set my search over $14k with a plan to negotiate down, but is there any guidance (or anecdotal experience) to tell me how high I might look? Practice. This is … If they don’t pass the test, they won’t get anywhere and we don’t have to sell to them as much as they don’t have to buy from us.’. As much as it used to be a thing, haggling at a car dealership is pretty much dead this day in age. Do you have any room to move if you wanted, or do you think most dealers are already more or less bottomed out? The used car market is changing, and the days of having to negotiate a car’s price are numbered. However, when you’re haggling on the price of a used car, or any car for that matter, there are certain ways to go about it. If you can not get this lower there maybe discount on another item the seller offers, so find out first.’. State Farm has offered $8,700, and dipping into our emergency fund would give us about $14,000 total. He said: ‘Pick up the phone, speak to my salesmen and make a genuine enquiry. Average Cost of a Car. I know that with, say, 35K miles on it I can sell that SUV for around $28,000 or so. Note that dealers often prefer to negotiate the sale price of the car you want to buy and your trade-in price at the same time. According to Kelley Blue Book, you can expect to pay an additional $1,400 per car on average for a CPO car, compared to what you'd pay for the same used car that hasn't been inspected and certified. Sounds like they initially drastically undercut you on the trade in value. They wouldn't budge an inch on the pricing in even the smallest direction saying it was the lowest they could go on that model. Regardless of if you’re buying a Kia or a Mercedes, the reality is there isn’t too much room to work with when just looking at the mark up. Car dealers have to make checks as to where money comes from and provide an audit trail. Good article. The first step in any successful negotiation is to establish a … In a nutshell? It's a good article, my only problem is with buying used is some dealers offer you KBB for your trade(show you the sheet) and then try to sell you the new used car for more than KBB. Seems like from other comments the gist is the trend has shifted from negotiation in the internet age? Just wanted to thank everyone for their comments and drop a quick update. What’s more, most banks these days charge business customers to deposit cash. Car dealers hate cash. You wouldn’t negotiate with car salesmen without the car’s average price; you shouldn’t negotiate an auto loan without information, either. Easy Purchase Process. Used car dealers are more than up for a deal on the cars they are selling, but don’t try and pull the wool over their eyes by making up faults, says forum users Have A Word With The Wife. One of the Car Dealer forum users described these as ‘Snap Ons’, referring to the trade tool branded clothing they often wear. It is extremely rare for us to have a car priced off of the market, and we aim to come out of the box with pricing that's at 95-98% of market (depending on the car). We're basically one price, and if we do haggle it's over a couple of hundred dollars or we'll throw in new floor mats or a few oil changes. Had them give me 2K more for the trade-in and it was done. Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Everyone loves a deal on used cars. Dealers want more transparency and trust in the market, so many – and particularly those on our website – are moving towards a no-negotiation position by pricing their cars to the market value from the word go. This month my stores should sell around 350 used cars. Will have to check it out tonight. The manager wanted to sell the car and asked what would get me in it. ‘It must be kept friendly, but not over friendly so keep it business-like. Press question mark to learn the rest of the keyboard shortcuts. Do not let whoever came with you look bored and just ready to pay sticker price – I can suss these out! The average price of a new car is $31,000 while the average price of a used car is $19,700. Depending on how long a vehicle has been sitting on their lot, most used cars have anywhere from 10-25% marked-up in the asking price of the vehicle. He ended up wasting months of his time because he refused to simply buy the car at a reasonable price. Don't expect the used car sale price to budge. You can just go back to the private seller. In Canada, negotiation is a common part of the car-buying process. The listing price was $12,000, but that was deceptive as there was a $300 dealer fee, $320 for tags/title and $2,500 between a few different "reconditioning/service" fees shown after the fact. This is the amount you can expect to pay for a used car from a private party, and it is calculated using the vehicle’s make, model, features, mileage, and condition. If relevant I'm looking almost solely at Hondas (CRV or Accord) and Toyotas (RAV or Camry) from around 2012 or newer and no more than 80,000 miles. He was obsessed with getting more because they were ripping him off otherwise. I was only ever able to get them to move a few hundred dollars, and was wondering if I was a terrible negotiator. That’s the power of having options! He said: ‘Explain how you can make the sale today, explain that you understand it is a business and that they have overheads and introduce lightly why you want or need this discount – do not make the first offer. ‘However, if someone came in and told me they liked the car, but could only afford £2,600 I’d work with them to see what I could do.’, Pick up the phone and speak to the dealer. Is now a good time to buy a used car? I only discussed the car in terms of TOTAL cost, so it largely became a background thing whether the car cost $12,000 or if any fees were waived/lowered. I hate haggling price and would rather just see the lowest sticker price that you'll sell the car for. User Catalyst Auto says he has one simple piece of advice: ‘Treat everyone how you would expect to be treated.’. You wouldn’t be any other way if you went to a nice restaurant – why treat us any differently? Send us a message here and ask to join, and we’ll send you a link. Press J to jump to the feed. Have A Word With The Wife also says you should wait for the dealer to offer you the first price before starting to negotiate. Anne on October 25, 2016: A Toyota dealership acted in a disreputable way, in relationship to a Rav 4 I purchased in 2002 new. Negotiate with dealers by phone or online. 1. Typically, you won’t get as much money when you trade your old car in at a dealer as you will by selling it yourself to another dealer or a … ‘Be ready to do business, say that you are ready to do business, you will be asked,’ he says. Great read, thank you. Use Kelley Blue Book to calculate the Private Party Value of the used car. Most people know that you can negotiate on the price of a new or used car. Just as you would if you were selling it privately make sure you present it in the best possible light to the car dealer. ‘Just be honest,’ said forum user and used car dealer Casper. Used car dealer Noacross said: ‘Cash is not a help to us, neither is no PX or no finance deal, so it won’t secure a better deal.’. Ultimately we haggled, then agreed on $14,500. Maybe $500 if you're lucky. Good read. This is the first area in a negotiation free car dealership that you can negotiate.For example you can negotiate at CarMax when you’re presented with an interest rate of 6% and you know you can qualify for something better. Getting an extra 2k on trade was a good score. To make your negotiation more successful, you can collect ads from other classic car owners and dealerships, and bring them with you when you are meeting sellers. Apply for an auto loan online or from your local bank or credit union and take the approval with you to the dealership. Remember, you're looking at my, say, 2015 CPO Cadillac SRX Performance as well as the other 2015 CPO Cadillax SRX Performance listings from my competition. ‘The final price from the dealer is your starting point. ‘Don’t deal with an order taker, but go for an experienced pro instead.’. When you decide to buy a used car, you know that you will need to bring your game with you. I recommend this guide too, cover extensively the process including best times and bargaining techniques. Ultimately we haggled, then agreed on $14,500. So certainly not brand new or CPO cars, or anything particularly rare in our area. Are used car prices going down? Used car dealer MrC said: ‘Saying “I used to be an engineer” means an extra £200 on the price.’, While used car dealer David Horgan adds: ‘Don’t bring your carpet and torch – it makes you look stupid.’. ‘And always be decent. But there's more to consider than just the cost. Spare keys, service history, bills etc – show me the stuff so that I can try and show you more money.’, Used car dealer Casper adds: ‘And leave the px as is when it actually comes in if you’re keeping the stereo and leaving a hole in the dash – tell us – and if you’re putting the alloys back to steel wheels, tell us.’. Don’t agree to 6%. Buying a used rental is much different. I've purchased 3 used cars over the past 2 years and noticed this myself. ‘If someones comes in and says the £3,000 car I’m selling is only worth £2,600 because their friend said it is, then I’d be like “it’s £3,000”,’ said Casper. For a used car… It’s handy to know what a car dealer would say to you before you walked into their dealership and here we’ve shared their top tips to help you get the best price for your next used car. He also suggests if you’re ‘pleasant and straightforward’ about your needs and you like the service you get, go back again in the future. We do have the luxury of being able to juggle one car for a while, but I can't sit it out forever. To help you work out how much the car will cost to run, try using our Car costs calculator. Start the negotiations with your precalculated low offer. ‘There is nothing worse than a customer trying to make up faults to get money off the car they’re looking at.’. How much the dealer will give the buyer for a trade-in towards the used car. You can also use Car Guide to find out the market value of the car. If you can, get your credit report before buying a car. I prefer the way things are done nowadays. Feels like I did pretty well, all considered. Background: Wife was rear-ended last week, and we were surprised to learn the car was deemed a total loss. They will be pleased to see you and will do favours if you need them.’. Owen CEO Ken Choo and lots more, Investigation: Meet the hyper-specialist car dealers making their money from weird and wonderful motors, Car Dealer Top 100 – The list in full of the most profitable car dealers in the UK, Multi franchising: Premium brands rule out selling cars alongside rivals in same dealer – as others remain tight-lipped. What tends to happen is a buyer sees the car at the top of the list for just under $35,000. How much can you negotiate on a used car? Car Dealerships Locations List 2021 revealed, Who won what at the Used Car Awards 2020? Use your first time at the negotiation rodeo as a rehearsal, even if it means test-driving a car you're not even interested in. Why do they hate it? Good luck in your search! Car buyers want to make sure they’re getting the best deal, while car dealers will always be happy to negotiate. Offering a dealer cash will absolutely not get you a better deal. Kind of irks me. Between everything when I sat down to negotiate their grand total was just over $16,000 for the car. First of all, it is not so easy to find all sorts of offers and information about cars that can help you get the upper hand. These ads can be used to show them that there are better offers elsewhere, so that they will be more willing to give a more competitive price. But cheekily, our used car dealer adds: ‘But do not do any of this – just pay full price.’ He is, of course, joking. The cars available from rental companies are typically 1 to 2 years old. Thanks for the insight. I just know what I'm paying and the accounting is their issue. The only make up was to get things I wanted (new floormats, tires, etc..) The only thing thing that kept me to buy the car was walking out. ‘The part exchange car isn’t worth what’s owed to the finance company. “Know all the small things about your car, especially if you want an extra $500 for it compared to other cars in your area–maybe your car has a warranty or has had only one owner.” Understand Local Supply and Demand You can get a sense of the demand for your make and model by checking ads for similar vehicles over a period of a few weeks. Maybe the dealer will counter with a new offer that’s under $9,000. 1. Forum member Highline8 recommends the best way to get a decent used car price is to pick up the phone rather than email. ‘A buyer is as much selected by us, the seller, as them selecting our car. When you buy from a car dealership, the buying process is mostly on the lot. ‘If someones comes in and says the £3,000 car I’m selling is only worth £2,600 because their friend said it is, then I’d be like “it’s £3,000”,’ said Casper. That can stretch a bit to include taxes/fees but I'd like to keep my all in around there. There are some general rules to follow, says Car Dealer forum user Jimmy Glen, when visiting a used car dealer that he believes everyone should follow. However, you can use the guideline of 2 or 3% on less expensive brands, and 5 to 10% on luxury brands as a rule of thumb. This allows you to compare used cars for sale on multiple car search sites such as Autotrader and Motors. By week four, the online car search firm says, the price of a used car costing $18,000 could easily fall to $16,800, saving you $1,200 in the bargain. For a new car, it may be the manufacturer’s suggested retail price (MSRP), or sticker price. Zero. Here, we’ve asked members of the Car Dealer Magazine Forum for the advice they’d give customers before they stepped into their showrooms. More importantly, the more you know about the car, the more leverage you will have to negotiate. Dealers will prefer you’re honest about how much you’ve got to spend on the car you’re looking to buy instead of making up excuses as to why you think it’s worth less. When you’re negotiating for a car, the worst thing you can do … Your negative equity isn’t our problem – we aren’t here to pay your shortfall. Things have changed so much these days. Hits the nail on the head. I was in a similar situation for some posters. We use cookies on our websites for a number of purposes, including analytics and performance, functionality and advertising. recommends the best way to get a decent used car price is to pick up the phone rather than email. Once you know how much you have to spend, research the car’s advertised price. If you do it right, you'll often find there’s a little wiggle room on the sticker price, even if it's just a couple hundred dollars. I tend to ignore long email enquiries as experience has proved most of them to be time wasters.’. You can assess the value of the car you want by plugging in its information into a website that tracks and appraises car values, like Kelley Blue Book or Edmunds. In many cases, the dealer will advertise a price below asking. You can get a better deal near the end of the month if the dealer so happens to be a few cars short from their quota. Negotiation by email or phone keeps you in control. This. 2. Everyone knows you can negotiate on a new car's price, but they look at the wrong price to start. Buying a used car can be a confusing, complex, and anxiety-inducing process. Go to dealership, car sticker shows 14.3. Between everything when I sat down to negotiate their grand total was just over $16,000 for the car. Current pricing information, from these impartial sources, will give you confidence and show you how much to negotiate on a used car. They'll also be touching up some minor cosmetic issues (paint scratch, problem with the sun visor, etc). Nice, normal, polite people get much further with us (buying or even when a car has issues). Buying a used car from a dealer is less risky than buying privately because you have more consumer rights if the car shows serious faults later. Especially considering a future relationship with a service center, all things being equal, if your shop isnt losing money it would seem the incentive is to do the deal. Research Your Target Price. I found a 2012 RAV-4 with about 69k miles on it. IE is it a safe rule of thumb to expect there should be 10% or so of wiggle room on the "internet price" of a listing if I'm ready to hold fast with my offer? Trade Vet adds: ‘If you are happy with the service, it makes sense to stay loyal to the same dealer especially if the same sales guy remains. Around 2k under msrp on the average car would be a decent deal. The average used car on a car dealership lot is 4 years old. Once you have a better idea of cost, you can set your ideal target price for the car you’re shopping for. What is happening to used car prices? Maybe $27,300 if it's gold and if it's Pearl White over Black maybe I can ask for $28,500 but that's it. Make sure you screen shot or have email confirmation of the “internet price.” Dealership wouldn’t budge until I showed them emails from the internet sales manager. Car dealers are experts at negotiation, and if you do not know how to play along, then you will not be able to get the best price for your dream auto. I am a dealer. Either way, you win. By the following January, its value will likely have dropped by at least 20%—making your one-year-old car, probably still in beautiful condition if you have been taking care of it, worth only $28,000. There's a fair amount you can negotiate. Mike Brewer reveals our winning car dealers, Used Car Awards 2021 will be back in all their glory on November 29 hosted by Mike Brewer, Out now: Car Dealer issue 156 features our Used Car Awards, H.R. If not, that’s okay. This can get confusing for shoppers. Curious about how much you might spend on a new or used car? He also agreed with Casper that you need to be realistic on budget. Nothing gets a car dealer’s back up like a mechanic friend who insists everything is wrong with the car when it isn’t. This can help you figure out an estimated average price range in your area. They would pop up online from time to time and he took personal offense that none of the used dealers would drop the price by more than $500 off asking. Ask them about the ad on the internet. No telling what their dealer fees are, but if they didn't have any beyond the $300 which is standard in my state, I would have been in the $15,500 range ($14k car + $300 dealer fee * 6% taxes, then + $320 tag fees). While forum member Noacross adds: ‘Biggest one for me is BE NICE. Feels like I did pretty well, all considered. Join our community, read the PF Wiki, and get on top of your finances! If you negotiate up from you number you have a much better chance of getting a good deal. If I price it at $29,995 and think "Ahh, these buyers all want to haggle" then the phone just won't ring and 60 days comes up and I am in trouble. Each used vehicle is different in one way or another, and the price will be a direct result of that. That means your new $35,000 car you bought in January will be worth about $31,500 come February. That could be the invoice price, minus incentives, plus, say, $100. Yep bought a used car maybe 5 years ago and most dealerships didn’t budge on price especially with corollas (what I bought). Looking at listing sites I see other RAVs with similar age/mileage in my area posted in the $14,000 range. It's like okay, we are doing KBB prices, then let's do KBB prices. This is how most clever dealers work these days. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. Used car shopping in the age of the internet is awesome. You made an interesting point about competitor prices - it seems like there should still be some power in saying a cash buyer can walk out and drive 20 minutes to a competitor with a similarly priced car. Every one of the used car dealers we spoke to for this feature said rather than give you a better deal for cash they’d be more inclined to avoid it. Therefore doing a full check is a wise decision. Many of our top tips above apply when negotiating with dealers over used … I'm comfortable spending to that amount in order to get a car that doesn't add years or miles to what my wife was driving. It’s a post by a professional car buyer that explains used car pricing flexibility. The lower you negotiate the price, the less depreciation you may have to pay for over the life of the lease if all other terms remain the same. You can save for a few months before you get into the market or you can increase the amount of money you get for your trade-in by selling the car yourself.