Navigating negotiations when buying a used vehicle can be a bit intimidating. Especially if it’s not something you do regularly. When money comes into play, everyone wants to win. With our recent car purchase, we learned a few tips and tricks that I thought I’d pass along to you!
We recently purchased our new-to-us minivan. It’s the perfect family vehicle and makes our life so much easier! You can read our Guide to Buying a Used Minivan here.
Please note, I/we are in no way car buying experts. These are tips that I thought would be helpful insight from our recent experience.
Here are 7 tips for navigating negotiations when buying a used car:
1. Know Who You’re Dealing With
Sales professionals are just that – professionals! They do this day-in and day-out. Be prepared to play some mind games. Keep a poker face as you’re looking at the car. Don’t be scared or intimidated by the salesperson. Keep your end goal in mind, not theirs. Ask a ton of questions.
We thought it was helpful to have this Car Buying Guide on-hand throughout the process to keep our goals in mind for this purchase. You can get yours for FREE here.
2. Keep Your Lips Sealed
Do not discuss anything about financials until you’re sitting down in negotiations. If the salesman asks you if you’ll be financing, tell them it’ll depend on the final price or that you don’t know yet. If they ask you how much you’ll be putting down, the same thing.
They make a lot of money on financing, so they’re going to be phishing for information like this to make a sales pitch that will make them the most money.
3. Know the Numbers
There will be a sales price listed. For a used vehicle, I would assume there are a few thousand dollars of wiggle room. If you find a car, say “the one”, but it is a bit outside your price range, I’d keep this in mind.
When it comes to the negotiations, I’d start a thousand or so less than where you want to end. Basically, start as low as you think is fair (not an insult). Also, keep in mind the extra costs of buying a car – taxes, fees, registration.
We added all of these figures into our budget and consider it our “out-the-door” cost. This will likely be a couple of thousand dollars more than the sticker price, all said and done. Remember this when you are negotiating, and use your out-the-door budget number for figuring, not just the sticker price.
In our experience, there will be a bit of back and forth to get to the final number. Hold your ground, but be prepared to give a little. It’s okay to negotiate a few times back and forth, the worst that will happen is they will come back with the same number. You’ll then know that’s about where you’re going to end up. Both parties should walk away feeling like they “won”.
4. Research Comparable Vehicles before negotiating
Once you believe you’ve found “the one”, go try to find a couple of other vehicles that are exactly the same (or as close to it) – same color, trim package, miles, etc, but have a lower price than the car you’d like to buy. Take your search out a few hundred miles if you have to.
I did this the night before going to see the van we purchased. I found two other minivans that were the exact same, but a much lower price, and saved them on my cars.com app. I had this information in our arsenal, and it was how we started our negotiations.
While they didn’t ask for much more information about the comparable vans, what we were able to tell them off the cuff was enough to start a conversation. It is basically like price matching for the car world. This worked very well for us.
5. Understand the Sales Strategy
As I mentioned in my post about our car-buying journey, we went to look at a van at a dealership that had no-haggle pricing. This meant that the sticker price is exactly what they were selling it for, no room for negotiating.
We didn’t know this going in. It ended up being a disappointing experience because we were in the mindset to pull the trigger and were faced with a stone wall when we went to discuss financials. We ended up walking away, and that was the best move for us in the end.
I’d recommend asking this question early on when you’re looking at vehicles. Especially if you’re driving a bit to see it, I’d ask on the phone when you call to check availability and set up an appointment for viewing the vehicle. It’ll set the expectation right out of the gate for all parties.
6. Don’t be Afraid to Walk Away
Don’t be afraid to walk away! It might be a competitive market, but if they aren’t willing to work with you on price, it might not be the right fit, and you have to get okay with this. I definitely understand a no-haggle pricing strategy, but we were much more comfortable with how our final negotiations went and glad we walked away from a previous car that had no-haggle pricing.
If you do walk away, and you’re still feeling strongly about it a day or two later, you can always go back (if the car is still available). They may even reach back out to you! The gal that we worked with on the Limited text me a couple of days later to see how things were coming along for us.
7. Say No to Warranties
Unless there are existing warranties that come with the vehicle you are purchasing, I wouldn’t worry about adding any others at the time of sale. Most anything you’d want to have can be added at a later time.
This is another area where dealerships can make more money, so we just give a hard pass when they begin to discuss those with us. It’ll also jack up your monthly payment. This is just our mentality with warranties in general, so if you feel strongly about having one, do what you feel is best.
I hope this was insightful and helpful for you! I understand how intimidating buying a new vehicle can be, so hopefully, you feel a bit more confident in knowing what to expect. I know I always feel better going into a new experience when I understand more about the process. I wish you the best of luck in finding your new vehicle!
To the Chaos!
-MG
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