Follow these five essential tips, you’ll learn how to negotiate on a used car and beat the dealers at their own game!
1. Do Your Homework
If you want to know how to negotiate on a used car, you need to do your homework before setting out.
You must have an idea of the make and model of car you’re after. If you’re unsure of the exact car you’re after, prepare a shortlist of a few alternatives.
Check the prices of each car on your shortlist by searching several online used car websites. Classifieds sections of newspapers are also great sources of information.
If trading in your current car, knowing the value of your trade-in is essential. Check the value online so you don’t get ripped off.
Learning some persuasive techniques will greatly assist your negotiation. You can be sure the used car salesmen will know them all, so give yourself the best chance to success by reading up on the top persuasion tips.
When coming armed with knowledge, it’ll be much harder for the used car salesman to trick or mislead you.
2. Be Prepared to Walk Away
Used car salesmen are expert persuaders and some of the most forceful sellers you’ll encounter. Learning how to negotiate on a used car can be tricky, and dealers will only ever highlight the positives of a car.
Highlight any issues you find with the car. If there’s a paint chip or a scratch somewhere, use this to your advantage. Push down the price, or alternately get the salesman to agree to repair these issues before signing the contract.
If the salesman becomes too forceful, ignore him! It’s important to stay calm and composed. If the used car salesman sees that you’re agitated or stressed, he will press even harder to get a sale.
False scarcity tactics are often used, such as “we’ve had a lot of interest in this car, it might not be here if you come back later.” Simply ignore this. If you’re not 100% sure, just walk away.
When it comes to bargaining, this is where you really must know how to negotiate on a used car. The sticker price on every used car is always much higher than the dealer will be happy to get.
This is where your research comes in. By knowing the real value of the car, you can start negotiating hard. Start at the low end of the fair value, moving up in small increments. Don’t move up quickly, and remain firm.
3. Ask for Extras and Freebies
Knowing how to negotiate on a used car involves more than price alone. Sometimes the dealer may refuse to haggle.
If this is a car you really like, try to negotiate some freebies or extras to be “thrown in.”
If buying from a manufacturer’s dealer such as Toyota, Holden, Ford, BMW, etc, ask for a free service voucher to be included. Other options include asking for a fuel voucher, car wash coupons or some accessories for your car, such as floor mats, detailing products or car parts.
This is a very important step on how to negotiate on a used car. Some people feel uncomfortable asking for freebies. However, you need to remember that all used cars are priced far above their true value.
So you’re not asking to get something for nothing, you’re merely bridging the gap between asking price and fair value. Don’t be embarrassed to ask for freebies!
Finally, if nothing else works, always ask for a free tank of fuel to be included. Be firm and tell the salesman, “I will buy now, but I want a full tank of fuel included.” Remember the law of reciprocity and use it to your advantage. By making a sale, the used car salesman will get a commission. In order for you to buy, he must throw in a little something extra to sweeten the deal!
4. Timing is Everything
Knowing how to negotiate on a used car involves knowing when to buy. Saturdays are the busiest day of the week for used car sales.
Dealers often want to get off to a good start. Be the first customer through their doors on a Saturday morning, they’ll be more flexible and open to negotiation!
The last weekend of each month (or very last day even) is best. They’ll want to close the month on a high and will be more flexible in order to get “one more sale.”
If you’re not in a hurry, you’ll get the best deals at the end of the financial year. It’s like end of month on steroids! Used car salesmen will be like a pack of wolves, salivating at any opportunity to make an extra sale. Come in during the last week of a financial year and bargain fiercely, they’ll be mad not to make the sale!
5. Stay Confident
By projecting your voice (not shouting) and speaking confidently, you will assert authority and confidence. If the used car salesman sees you speaking in a quiet whimper, you’ll become easy prey for him!
Download your free copy of the Top 7 Persuasive Secrets Most People Will Never Know and give yourself the best chance possible of driving away with a great bargain by knowing how to negotiate on a used car.