According to iSeeCars.com, used car dealers cut the price on the average vehicle between one and six times over that 31.5 day listing period. The first price drop is significant — the firm says that the price drops, on average, by 5% the first time the dealer rips the old sticker off the car and pops a new on.
Based on your pricing homework, you should have a good idea of how much you’re willing to pay. Begin by making an offer that is realistic but 15 to 25 percent lower than this figure. Name your offer and wait until the person you’re negotiating with responds.
Focus any negotiation on that dealer cost. For an average car, 2% above the dealer’s invoice price is a reasonably good deal. A hot-selling car may have little room for negotiation, while you may be able to go even lower with a slow-selling model. Salespeople will usually try to negotiate based on the MSRP.
Haggling is crucial to getting a good deal on a used car. If that sounds obvious to you, you ‘re in the minority; more than half of all car owners say they didn’t haggle on their last purchase. But most cars are priced up with a margin in mind for negotiation. So if you don’t negotiate, you ‘re paying over the odds.
10 Things You Should Never Say to a Car Salesman “I really love this car ” “I don’t know that much about cars ” “My trade-in is outside” “I don’t want to get taken to the cleaners” “My credit isn’t that good” “I’m paying cash” “I need to buy a car today” “I need a monthly payment under $350”
How to Negotiate a New Car Price Effectively Set the Ground Rules. Rather than be drawn into a discussion on the salesperson’s terms, let him or her know: Down to Brass Tacks. Start the negotiations with your precalculated low offer. Hold Your Ground. A salesperson’s initial reaction might be dismissive. Know When to Walk. Know When to Say Yes. Time to Talk Trade-In.
The mark up on a used vehicle is the difference between what it is sold for and what the dealer paid for it. A typical mark up is between 25 and 45 percent, which may or may not include repairs and processing fees.
20 Ways Every American Can Outsmart Their Car Salesman 1 Show up with a good attitude. 2 Don’t engage in the waiting game. 3 Consider leasing before you buy. 4 Shop for a less popular model. 5 Try to use your banking rewards programs. 6 Be sure to check the manufacturer’s website. 7 It’s better to pay in cash.
January is the best month to buy a used car, according to a study from car search engine and automotive research firm iSeeCars. For those hunting for a good deal, late fall and early winter are the best times to buy a used car, while late spring and early summer are the worst times.
It’s not a gimmick, but mainly to get rid of cars at the very end of the model year. It’s great savings if nothing much has changed in the new model year. Don’t forget, 20 % off MSRP also ruins your resale value if you ever get rid of it. Not a big deal for some, if you drive it til the wheels fall off.
An offer of 3-5% over a dealer’s true new car cost is a very acceptable offer when purchasing a new car. Although it’s not a huge profit, a dealer will sell a new vehicle for a 3-5% margin any day of the week.
When dealers sense hesitation, they’ll sometimes try to force buyers off the fence by telling them that the deal they offered is only good for that day, or that another buyer is interested in the same car. This is their attempt to force you into an emotion-based decision. There are always more cars and other dealers.
Paying cash for your car will reduce your time spent in a dealership, and you can avoid interest charges if the car you are buying does not offer 0% APR financing. However, paying cash will not necessarily guarantee you a better price, and in fact, it might cause you to pay a higher price.
13 Questions to Ask When Buying a Used Car Why are they selling the car? How old is the car? What’s the car’s mileage? How long have they owned the car? Are they selling the car as is, or is it under warranty? Is there any damage to the exterior of the car? What does the interior of the car look like? Are there any mechanical problems?
Keep your expectations real as the price you want to pay for the car may be too far out of the dealership’s bottom line or lowest price. If you can successfully negotiate a price you have enough cash for plus or minus a small amount you know you can afford, take it.