In the US, 72% of potential car buyers who tried to negotiate were successful, according to recent research by Auto Trader. This statistic illustrates that when buying a second-hand car, you can save a lot of money just by negotiating for a discount. To achieve this, you need to conduct thorough research of the vehicle you plan to buy, including its selling points, downsides and price lists for different dealers. Once you have settled on the one that you can comfortably afford, follow these tips when bargaining, regardless of whether you intend to use cash, finance plan or trade-in.
Understand how dealers make their money
When approaching a dealer, it is essential to know that they look to make money in more than one way. Besides the profit from selling, they can make money by selling you things such as extended warranties, financing, and add-ons such as fabric protection. Also, in the case of trade in, they can make a lot of income on the difference between the value they give your vehicle and what they fetch upon selling it. As a potential buyer, you need to take into account such factors when doing your calculations. Also, remember to check the features of all the options you have and use them to compare the prices.
Talking to the salesperson
The way you approach and handle the sales representative matters a lot in terms of how the deal will close. You should always be polite, friendly and seemingly soft without allowing the person to capture your top limit. Additionally, you should commence negotiation by stating an amount that is lower than what you are prepared to pay, and you can gradually raise it if need be. Also, remember that dealing with a private seller is slightly different from a dealership; they can sometimes offer incredible discounts as they are often in a hurry to sell. As such, always analyze the seller to see how desperate they are and take advantage of that.
Negotiating for a used car can bear good fruits if you make a strong case and are aware of the seller’s moves. If you find that you are struggling too much to get a discount, but you really want the car, you may close the deal if the price is within your range. However, never be afraid to walk out of a deal if the salesperson is too rigid and unwilling to bring the price down. Also, never forget to bring with you a reputable mechanic, preferably a friend.