Master The Art of Negotiation While Buying a Used Car

Used Cars Market

Depreciation is one of the major reasons why people opt to buy a pre-owned car over a new one. A new car will depreciate around 10% as soon as it leaves the car showroom! Another 20% depreciation happens in the first year. After say about 3 years, an average car is worth about 60% of its original price.

This is a screaming deal for those who are looking to buy a used car. Cars that are one to three years old should still have some time under the manufacturer’s warranty. Unless it has been utilized, it should be good to go for many more years of service. This creates buying opportunities for savvy car buyers who know how to negotiate pre-owned car prices.

What To Keep in Mind While Buying a Pre-Owned Car?

• Research and identify the model of the car you are looking to buy.
• Decide your budget.
• Always stick to the maximum price you are willing to spend.
• It is always better to close a deal with a car dealer than to buy from private parties.
• "Certified pre-owned" vehicles are more expensive. Choose wisely.

How to Negotiate While Buying Used Cars

Have a friendly approach

Make sure you create a friendly rapport with the car seller while buying a used car. If you have a more cheerful and happy approach, the car seller will be more easy-going with you.

Research price in advance

Make sure you know full well about the car you are looking to buy and what the price range could be for the particular model. Check online, find out from peers, visit a couple of dealers, and understand the market well before making your move.

Describe your dream car

You must describe to the car dealer what exactly you are looking for. From the type of car, you are looking to buy to the specification you would like the car to have, describe what you are looking for clearly so that the car dealer will help you make an informed and the right decision.

View the invoice

Always make sure to ask for the original invoice of the car. In the invoice, you will see the original price and the mileage of the car. With this information, you can decide on a price for the car.

Increase the price gradually

Do not say yes to the price quoted by the dealer or seller immediately. Quote, a price you feel is the best fit for the car you are planning to buy. Make sure you know the market well and have done your research. Quote a reasonable price and see what the seller has to say. Gradually increase the price as you discuss the faults or defects that you have caught while taking the car for a test drive or while checking the car with a mechanic.

Communication is key

Communication is key when it comes to bargaining or negotiating – especially in cases of buying big things like cars. There is nothing wrong with quoting a low price. However, if the price you have quoted is very low, the seller might not show interest. However, the best thing to do is to tell the seller your budget and then begin the deal so that it will save both your time.

The Bottom Line

Always understand that buying and selling a car must benefit both the buyer and the seller. It is therefore wise to close a deal that stands advantageous for both parties. Not all sellers will settle for a negotiation. Not all sellers may even negotiate in the first place. Therefore, know your seller first and understand what their stand is before you move further into the proceedings of the deal. The idea must be to buy a used car within your budget. Even if the deal you took forward did not work with a specific seller, leave the place in peace. Make sure you follow proper decorum while dealing in such instances.