Quick Answer: Can You Negotiate A Used Car Price?

How much should I negotiate off a used car?

When you start negotiating, give a low but fair target price and offer the salesperson to pay right there if they can hit it.

Your target price should be based off the true value of a car, which you can find on a site like Truecar or Kelley Blue Book, and is usually less than the sticker price..

Is it better to buy a car online or at the dealership?

Turnaround time. Buying a car online is often faster. While you might be able to drive away the car from the dealership the same day, it typically takes at least an hour to get a deal. Negotiating at a dealership is more of a performance and there can be a lot of back and forth between the salesperson and their manager …

How much do dealers mark up used cars?

It’s typically 1% or 2% of either the invoice or the sticker price of the car. On a $20,000 car, a holdback represents $200 to $400. The holdback allows dealers to sell a car at invoice price, or even below invoice, but still receive money to cover the costs of doing business (advertising, sales commissions, etc.).

How do you haggle for a used car?

How to Negotiate for a Used CarBuy cars that are at least two years old. Why two years old? … Read Consumer Reports annual auto issue. … Get the big picture value. … Fine tune your estimate. … Check the dealerships to see if they have the car. … CarFax. … Research financing rates before you walk into the dealer. … Take care of the trade-in.More items…•

Can you negotiate Internet used car prices?

You can easily contact the dealership and talk to the Internet Sales Manager to ask if they can do better than their posted price. Chances are, he or she will tell you that this is the rock bottom price or they’ll tell you that you can come in and talk to them.

What should you not say to a car salesman?

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”More items…•

Will car dealers take less for cash?

Paying cash 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.

What is a good mileage for a used car?

Mileage will vary between vehicles, but a decent rule of thumb to follow is that people drive an average of about 12,000 miles a year. Therefore, 120,000 miles would be a good mileage for a used car that’s about 10 years old. Of course, some cars will have less or more miles on the odometer.

What should you pay for a used car?

The frugal rule: 10% of income. For many people, I think that will be between 10–15% of your income. So if you earn $25,000 a year, that’s going to be a high-mileage used car for $2,500–$3,000. If you earn $80,000, that’s a used car for around $10,000 or $12,000.

Why you should never pay cash for a car?

That is because credit card debt is unsecured, and a car loan is secured with the product that you drive off the lot. … A person who bought cash for their car, may be using their MasterCard for grocery shopping and bleeding money in interest rates each month, even if it’s paid on time.

Why do dealerships say call for price?

Often “call for price” is just a hook for you to pick up the phone and give them an opportunity to invite you to the dealership.

What is a car dealer Internet price?

Car dealership internet departments focus on selling a higher volume of cars rather than zeroing in on getting on maximum profit on each individual deal. Therefore, the initial price quote from an internet sales manager is often very close to the absolute lowest selling price for a given vehicle.

How old of a used car should I buy?

Target Cars that have Passed the First Drop in Depreciation So for used car shoppers, purchasing a car that’s two to three years old and driving it for three years results in some of the lowest costs for recent model cars.

Are used car prices negotiable?

When you buy a used car, you expect to go in and negotiate: to drive the price down and walk out with a bigger deal than you anticipated. In fact, in many cases, the dealer may turn you down flat when you attempt to negotiate over the price of a car. …

Do dealers like cash buyers?

Dealers prefer buyers who finance because they can make a profit on the loan – therefore, you should never tell them you’re paying cash. You should aim to get pricing from at least 10 dealerships. Since each dealer is selling a commodity, you want to get them in a bidding war.

Why is it a bad idea to tell a car salesman that you are not paying cash?

1) “I’m Going to Pay Cash!” However, dealerships now make a tremendous amount of their profit off of new and used car financing, so telling them that you won’t be borrowing money will cause them to jack up the price of the car to make up for the profit that they won’t be making on the financing.

How do you talk down a car price?

How to Negotiate a New Car Price EffectivelySet 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.