Helpful Dos and Don'ts of Negotiating Used Car Prices

DO know that negotiating used car prices is always an option that is open to you. Despite the fact that some sellers will attached a "price is firm" quote along with their listing, most are open to negotiating if you start to haggle. Their goal in saying price is firm is to create a strong impression that they will not negotiate, but a good percentage will actually lower their selling price if presented with a decent offer.

DON'T outright say "$5,000 is all I can spend," unless you know for a fact that the car value is a lot more. Let's say that you look up a vehicle's estimated value on the Kelley Blue Book website. You then determine the vehicle is worth $7,000 on a private sale. It is okay to toss around an exact figure when you know for certain the vehicle is worth a sizable amount more. It is too risky to outright offer $5,000 for a vehicle worth $5,500, as the seller might have accepted even less.

DO haggle or negotiate for a better deal on a used car in person, as negotiations tend to go better when done in person. It is much easier for a seller to refuse a lower offer via phone or email because they haven't met you. Once they meet you, they can then associate a face with the person; the face of a real human who is ready to make a purchase right then and there. Basically, you are standing in front of them ready to buy the used car right then; the money is almost in their hands and this gives you a lot of power when haggling.

DON'T forget to check the value on the Kelley Blue Book website of all vehicles that you are interested in before negotiating for a better price. Most sellers will set their asking price slightly higher than the recommended resell value through a private sale. They do this to make money. With that said, some sellers do actually set their asking price lower than the Kelley Blue Book value, as they know this increases the chances of them making a sale. The Kelley Blue Book value will work in your favor as a negotiating tactic only if the selling price is higher.

DO print the value check you did from the Kelley Blue Book website or have your smart phone ready to access this information. So lets say that the seller is asking $10,000 for a vehicle valued at $8,000. Inform them of the price difference and state that the Kelley Blue Book website is accurate and comes highly rated and recommended. But wait! What if they don't believe you? Whip out this printed document or the phone; show them right then and there that the car is worth much less than being sold as.

DON'T show your excitement about a vehicle too soon. Lets say that you have been searching for a quality used minivan within your budget for weeks, you finally found it! It is only natural to be excited upon first glance, but too big of a show of excitement can hinder your ability to negotiate. By showing too much excitement, you pretty much show that you will buy the car. If you are likely to buy the car anyways, the seller isn't going to negotiate with you as there is no reason for them to do so.