How to negotiate car price when you buy it
The purchase of a secondhand car is a stepbystep process; it pays to spend a moment going overt hese steps to make sure the transaction goes the way you’d like it to go. The last step is price negotiation; by some, it might seem embarrassing to even try and ask about a discount. Is it really an embarrassment, though? How to negotiate car price to make it effective?
How to negotiate car price – does it have to be embarrassing?
Do not compare secondhand car purchase to a purchase of, say, a piece of furniture. Why argue over a price while buying a car if in any other case you just pay whatever is written on the tag, you might ask. The reason is, you will find it much harder to assess the real value of something that has already been used, as opposed to a brand new thing. If we’re talking about cars, the case is even trickier. A given car model is sold in different salons in a couple of versions, it is then driven by different drivers on different roads and does different distances, and finally, it is serviced by different – better or worse – service stations. As a result, two identical models bought in the same salon will have a totally different value after just a couple of years.
The real value of a secondhand car.
Since you can’t use a simple factor to determine the real value of a secondhand car, it is, in fact, the market that does this job. In simple terms, the car is worth as much as you can get for it. The seller has provided a price that he or she would be happy with; you are more interested in your own satisfaction than theirs, though. Not only this; since professional dealers are used to customers negotiating prices, they will often propose an increased initial price precisely because they expect you to try and have it reduced. This is one of the reasons why you should definitely put some effort in making them let you pay less; there is nothing embarrassing in such negotiations if you’re buying secondhand.
How to prepare to bargain
Before you even begin the discussion, make a list of as many arguments for price reduction as possible. It is best to start by learning about the model you’d like to buy. Check its typical faults, what mileage they appear at and what costs they bring about; this will enable you to ask for a discount in view of the incoming repair costs when you’ve already been through the technical examination and reading of the service books. Make yourself familiar with similar offers; this may be the easiest way to convince the seller. In his or her mind, it will probably be better to give a discount and sell the car then let you run to any of the competitors.
While at the spot, always ask for a test drive and make sure you can examine the car in detail. There always are some faults, minor or major, to be found and used to get a discount.
Once you have prepared the list of arguments to be used while negotiating the price, ask yourself the two final questions: “Am I sure I want to buy this car?” and “What is the maximum I’m prepared to pay for it?”.
Knowing the answers is the key to success here. Remember: before you start bargaining, you need to know precisely what it is you want to achieve. This will make it far easier for you to succeed.
How to bargain
Before you start bargaining, get rid of all the aggression and negative feelings you might have gathered on the way. It may sound like cheap philosophy but never mind; it is one of the most important pieces of advice you can get on negotiating anything. Put yourself in the shoes of the seller: who would you rather work with, a wellmannered buyer or an aggressive one? Remember about your manners and make sure you use tothepoint arguments instead of demands or even invectives.
It is a good idea to start bargaining by saying, “I’m interested in buying this car. It has certain faults, though, so the price I can pay for it is XYZ.” From the very beginning the seller will know that you do want the car, in other words, that he or she has a chance to sell it. This, together with a good list of arguments, should convince him or her to reduce the price for you. Remember that there is no point using all the arguments you have gathered in one go: it is best to keep a couple of aces up your sleeve so you have a counterargument for whatever the seller says.
As a result, even if he or she is wellprepared to discuss the price, just as you are, and will have a smart answer for every argument you provide, the length of the whole discussion itself will suggest that the car is, in fact, quite faulty and not worth the initial price.
It is crucial that your proposed maximum is still lower than the price you’re actually willing to pay.
No seller in the world has ever accepted the price proposed by the buyer; it’s just one of the rules of bargaining. In the end, when you have achieved the price that you wanted (namely, not more than the maximum you were willing to pay), ask the seller for a couple more minutes to think about it anyway. Use this time well and try to figure out what else you might get at this price: an accessory, such as GPS, or perhaps a longer warranty? Remember: you are not the only one who’s happy the whole bargaining is finally over. The seller will already have started thinking of what he or she’s going to use your money for and is more than likely to agree to a free additional extra just to make sure you don’t change your mind last minute. After your “time” has passed, start the next round of bargaining by saying something like, “I’m ready to accept the price of XYZ provided that you add … (the optional extra) to the car.”
What NOT to say while bargaining
First of all, the seller cannot know you really want to buy the car. An experienced dealer will
always see that you’ve found the car of your dreams and are ready to pay whatever is proposed.
Forget about a discount, then. Secondly, make sure you don’t mention that you’ve spent a long time looking for that model, or that you really like it; be interested but in a moderate way. Never mention that you’re not sure whether you want the car or not, either: if the seller notices that, you won’t be proposed any discount as, after all, you may not be worth the effort if you don’t buy the car. You will most likely be proposed another model, perhaps even cheaper, on which the seller will earn anyway because every price has some margin. Do not tell the seller how much money you have; it’s one of the most popular mistakes made by car buyers. Say, you enter a car dealer’s and say “I’m after a car for up to 20,000.” What are the chances that if you find a car worth 18,900, the seller will still give you a discount? None, because you will already have said how much you can afford, and this price is less anyway. If your budget really is 20,000, tell the dealer that you can pay 1517,000. If you then find a car priced 19,500 and want it for 17,000, chances are you will be able to make it.
Dealer tricks vs. buyer tricks
One of the most widely used dealer tricks is extending the negotiations. The seller agrees to the price you have proposed, or a little bit more, but asks for a day so he or she can check with the boss (or wife, or whoever it is that owns the car.) You get an extra day of imagining yourself in the newlybought car, and the what you will do with the money saved, but in the end you get a phone call from the seller who says they’re sorry but the boss or wife are only agreeing for half the discount you have negotiated. After 24 hours of dreaming what your new car will look like when parked in front of your workplace or home, you are likely to accept the higher price and thus only save half as much as you had agreed.
A popular trick used by buyers is showing cash; this works best when you’re buying from a private seller, not a professional dealer. When you’re 100% sure this is the car you wanted, you take cash with you to the next meeting with the seller and while bargaining, you show it to them, saying, “I am buying the car, but the price I’m paying is XYZ because – as I’ve said – it does have certain faults. I am a serious buyer and do have cash prepared, look.” The seller (who also knows about these faults) may be willing to just take the money (that you’ve already shown them) knowing that even though you’re paying less, you can do it straightaway.
Will bargaining always work? Of course not. There’s more possible scenarios – and more types of people – than you can possibly imagine. One seller will turn back at the very suggestion of a tiny discount on a car worth 50,000 but another one may let you pay 21,000 for a car priced 25,000 when you have proposed 20,000. The uncertainty is just a feature of bargaining, though; do not resign from it just because you’re not sure, as the money you can save if all goes well is really worth the effort.
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