Buying a Used Car - How to Get a Good Deal on a Used Automobile?
Most people find buying a used automobile to be a hugely stressful experience, but it should not be so. Truth be told, we do not blame you if you're feeling overwhelmed â€“ especially if, like most people, you want to make sure you get the best deal possible. And you can take the pain out of negotiating the price of new vehicle purchase or lease and catch a good deal by following a few simple rules.
While avoiding the anxiety of buying a used car always starts with preparation, you should see negotiation of the price as one last step in the process. It starts with knowing the car, SUV truck you want, right down the trim level, color, and options. Learn how to better finance your purchase, make the buying versus leasing decision, and avoid common traps. Here are some negotiation strategies for you to use, and even those used by the finance managers and the salesperson.
Knowledge is Power
So, how do you make sure you get a good deal? In the negotiation game, knowledge is everything. Meaning that you should do everything you can before physically going to purchase a car. You can start researching what make and model you are interested in and how much they sell for in your region. By looking for specific models that have the mileage and features you need, you introduce competition to the car-buying process. As you probably know, a dealer might not match the lowest price you find, but it cannot hurt to ask. The thing is, a car salesperson will always have the most information, and you should be aware of that. Just think about it. When the typical shopper enters the store, he will instantly reveal to the dealer which car he needs, what's the amount he can pay per month, and which automobile he's trading in.
But seldom do we see a salesman to give way information that actually helps the customer. So, what do you think is going to get the better bid in this scenario? The person with more information. Thus, to reduce the amount you pay for an automobile, you need to do two things; not telling the dealer exactly what you want and what you're looking for and finding out as much as possible about the car you want to buy before you enter the shop.
Research Financing Rates Before You Negotiate
Paying on the spot might seem ideal, but sometimes you just don't have ten grand lying around to get your best bid. That's why you should consider auto financing â€“ it will come in handy, and car sellers would love to help you finance your used car. Don't forget that car dealers make a profit on the back end by convincing you to sign up for dealership financing. However, that doesn't mean you should finance your car with the dealer.
You may use any bank that you like, and to avoid the hassle of inking a car loan at the dealership, look for different auto loan rates at your bank. If the seller starts pushing to the tiny finance office, you can tell them that you've already been granted a car loan and even what the interest rate is on that loan.
Certainly, the seller will want to receive that commission from their bank, so they'll start discussing auto loan rates with you. There's a great chance to even get a better deal going with the dealer- but you still need to have your financing ready before you enter the car shop.
How Much Can You Talk a Seller Down on a Used Car?Â
So, you've found the bestÂ Ford dealershipÂ in your region and decided to go for it. But how convincing can you be? This is the most important question that you should be thinking about when you're planning to purchase a used vehicle, and there's no one-size-fits-all answer. The amount you can bring down eventually depends on what the vehicle is worth, how strong your budget and financing position is, and how long the car has been on the lot.
Here are a few things to consider as you open negotiations. Having a strong idea of the automobile's value can help you decide how much you can actually pay. If the car sealer is requesting $18,000, for instance, you think it's only worth $15,000 based on your reach, you can decide to meet in the middle and offer $16,500. A crucial thing to remember is to determine your max buying price before trying to negotiate so you won't end up paying more than you intended for a car.
Be strategic and Persistent.Â
Knowledge is and will be your best resource for getting a good deal. Knowing what other automobiles like the one you're negotiating for is key to talking down a price. But what else? Here's where your negotiating know-how comes into play. Simply receiving the dealer's sticker price as the lowest price, you got, is a good strategy to give yourself a case buyer's guilt.
What's more, when a lower price is the goal, you don't want to make a mistake and start with the wrong move. Come off as too insistent and demanding, and the seller may not be willing to make any discounts in your favour. Be too relaxed, and they may see you as a softy.
When you enter the dealership and present your offer, try to be firm but polite and try to take the chance to clearly make your case as to why the seller should accept a lower price. For instance, you've seen the same vehicle sitting on the lot for weeks, reminding the dealer that cutting your bid would help to free up space for another one. If none of your strategies seems to work, be ready to walk out â€“ there's no need to get too attached to one vehicle.