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| Auto Articles |
| How to negotiate the best price for
your used car |
| 10 Ways to lower your cost of
driving your car |
| How to inspect a car before buying |
| The pricing maze |
| Tailpipe smoke signals |
| 8 Questions to ask before buying a
used car |
| Best and worst used cars to buy |
| How to inspect a used car before you
buy |
| How to sell your used car for the
best price |
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| By ConsumerReports.org |
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Finding the right price
Every used car has several "prices," depending on who is doing the
buying and selling. The wholesale price is what dealers pay
when they buy a car from an auction or another dealer. That's also
likely to be the trade-in price they offer for a customer's car
when that person buys a new car. The higher retail price is
what dealers charge when they sell the same car. In private sales
between individuals, the price can be anything, but is usually
somewhere between the wholesale and retail prices.
Major factors that affect the price of an individual car include
the car's condition, its mileage, optional equipment, and even its
location in the country. That's why pricing for used cars—even of
the same make, model, and year—can vary across a wide range.
There are many sources of used-car price information. Consumer
Reports Used Car Price Reports, available for individual models,
provide up-to-date price ranges for buying, selling, or trade-ins.
Each report also includes exclusive reliability ratings on the
model, broken down into 14 different problem areas, as well as
advice for buying, selling, or trading in a used car.
You can also check out prices online, or consult printed price
guides such as the Kelley Blue Book, Edmund's, or the National
Automobile Dealers Association Official Used Car Guide. Price
guides are often available at bookstores, newsstands, or
libraries. Car dealers and bank loan officers keep them on hand as
well.
One of the best ways to figure out what a used car is worth in
your area is to check out local publications with classified ads.
Scanning ads for cars like the one you are interested in will give
you an idea of the prices being asked by private parties and by
local dealers.
If you have a trade-in, particularly a late-model car, you can
also canvass the used-car department of local new-car dealers. Ask
what they'd give you for the car in a straight-out sale. Whatever
figure you come up with in that way is the minimum you can expect
to get for the car. You should gather all that information before
you actually negotiate a trade-in with a dealer.
Selling a car privately is probably the best way to get top
dollar. But this also usually involves the most time and effort.
How to negotiate
Always assume that any advertised price is negotiable, even if an
ad says the price is firm. In general, negotiating to buy a used
car is less complicated than buying a new car. If you're buying
from a car dealer, there are fewer opportunities for the salesman
to load up the deal with extra-cost items and nonobvious charges.
If you're buying from a private party, that person is unlikely to
have the experience and resources to play all the games a salesman
might try.
The best way to negotiate is to say as little as possible for as
long as possible. Begin by making an offer that is realistic but
still somewhat lower than what you are willing to pay. If you've
found legitimate things wrong with the car, you might start by
itemizing these. If you've had a mechanic look at the car (which
you should do if you're serious about buying) and he's found
things that need to be fixed, you can use this information as a
bargaining chip, indicating how much money it will cost to bring
the car up to what you consider an acceptable level. Be polite
about it. Then name your offer and say no more until the person
you're negotiating with responds.
Whatever counteroffer you receive, respond that your original
figure is fair and as much as you're prepared to pay today. Say
nothing more and see what happens. Be courteous and businesslike.
If you must move your offer up, do it in small increments. If the
gap between the two sides is, say, $1,000 or less, move your bid
$100 at a time. When you get close to your target price, make it
clear that the game is almost over. State clearly when you have
reached the highest price you have budgeted. Once you've made your
last offer, stick to it. Don't be afraid to say that your offer is
firm and final, and good for the next 24 hours only. If the other
person does the same, walk away. With luck, nobody walks away and
the actual negotiation will be over within a few minutes.
Subscribers to ConsumerReports.org have access to Consumer
Reports' expert reviews and ratings, exclusive reliability data,
and information on safety features and ratings. Additional
information and advice on buying and selling a used car is
available in the Consumer Reports Used Car Yearbook and
Used Car Buying Guide. Both contain expert reviews on all
major 1993 through 2000 models, as well as exclusive reliability
ratings. |
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