Most of the new cars lose as much as 60 per cent of their value in the first year of their ownership. When this is coupled with a low down payment and a long-term loan, it leaves a lot of people disheartened when it is time to trade-off.
One way to escape this situation is to purchase a used car instead of a new one. But be well aware that buying a used car is a very different experience than buying a new one.
There are several different factors that would influence the price of a used car. Here are a few tips that you should know when negotiating with a used car dealer to get the best deal.
Be Prepared
One of the biggest mistakes that people make while shopping and negotiating for a used car is buying on impulse. This problem can be avoided by using the internet and looking up for cars that fall within your budget and are as per your requirements. The best way to get started is to look for local used car dealer websites.
What You Need To Know About Used Cars
Another common way during the process of negotiating is to make a visit to the local car lots physically. This helps car buyers to get a feel for what is available without the hassle of talking to a salesperson.
Once you have decided on the car’s make and model, the next is to figure out whether it is worth the price. There are two different types of car pricing you need to know retail and wholesale. The retail price is the anticipated price a dealer is going to charge.
The trade-in price, also known as a wholesale price is the price the dealer likely paid for the car in question. It is essential to know both of these as you would want to negotiate for a fair price which will be somewhere in between them.
Stand Your Ground
The other most common blunder people make is by compromising too much when purchasing a car. For example, by focusing on monthly payments rather than the purchase price.
Never disclose to the dealer what your current payments are and what you think you can afford. The financing shall be conferred only after the final price has been agreed upon. Before you confirm the deal, you should know the worth of the car and what you want to pay.
Buying a used car? Here’s a full checklist for you to use
When it is time to negotiate the price, don’t back off. Once the sales representative gets you to agree on one thing, they know they can get you to agree on more. Always remember you are the one paying them, therefore you are in charge.
Be Prepared to Walk Away
Be very clear about what your spending limits are before you go to purchase a used car. If something is not within your limits, don’t hesitate to go elsewhere. This hints to the salesperson that you are very serious about your price range.
If they want your money, they need to match your terms. Leave them your contact and wait for a couple of days for them to get in touch. If they don’t, then purchase from another car dealer. Do not let the salesperson drag you into a deal you cannot afford.
Therefore, purchasing a used car should not be an intimidating experience. By using these important tips and tricks, you should be able to negotiate a good deal from any used car dealer.