Negotiating the price of a used car...

[classy freshman]

I want to pay cash for a used car. Lets say the price is 10k. I want to purchase from a dealer.

What would be a realistic offer that a dealer would accept if I wanted to pay cash?

Any negotiating tips?

Thank you.

 

[phen0m]

Depends on the model, depends on the dealership. Without intimate knowledge, if youre really interested, i'd ask for 9k out of the door.. Personally, I always shoot for a few thousand off, so id offer 7.5 or 8.. then let then meet me in the middle somewhere

 

[ag 47]

Yeah, exactly...establish the line you'd be comfortable paying for starters. If the car is 10k and you can afford 9k, keep that in mind. My conversation with the dealer will start the negotiating around 7 or 8k and if I can, I'd bring up flaws in that automobile to justify my stance. Of course, the dealer probably won't bite on the 7k, but the plan is to keep the price below 9k ultimately. Also, if the dealer suggests you pay for xyz because it's only so much money, I love responding with "then, why don't you pay it"? For example, dealer says it's only $5 a month to pay for blah blah blah, then your response should be, "If it's so affordable, then why don't you pay it"?

Also, it's good to understand the dynamics of a car dealership and the pressure they are under to get rid of older models while bringing in newer ones. This could provide you more leverage, but of course you need to do your research. Lastly, don't feel pressured into a decision. You hold the ultimate trump card. You can always get up and walk out (don't play this card too early though

)

*disclaimer: I've never negotiated for a car, but this is the strategy I use in negotiations in general. Good luck and keep us updated. We can all learn from your experience.

 

[mases apprentice]

depends on how strict the dealer is.

drive it, point out anything and everything wrong. Tell him... it doesnt feel like a 10k dollar car. more like a 9k dollar car and see what he says lmao

but you can always throw out offers and walk out.

 

[oidreez]

why a dealer though?

 

[703 hwy]

If it's 10k tell him you'll give him $8800 out the door. And put the duffle on the table and tell him you want dealer plates.

 

[classy freshman]

I would prefer not to buy from a dealer, but all of the private party cars have looked at are basically charging deqler prices with no warranty. I figure I might as well pay a little more for some security

 

[nyc game]

I hear that bro, I'm looking for a used seabring, but the dealers trying to get 9 to 10K with some dirty interiors and over 100 thousand miles on it -_-

 

[wizards23]

My boy works at a car dealer so I have some "inside" info lol...

First off, most used cars have a huge profit margin for dealers. They usually get them from auto auctions where they pay less than your would think

Example, they got a 2008 Audi R8 from auction for 42k. They are going 80-90k on autotrader.

I hear stories from him where they get cars for <5k and sell them for 15k+.

On a 10k car they may have paid 3k-5k. I would offer 7k cash to start. I think it's important that you throw out the first number. This is an anchor point from which to negotiate from.

Remember there is tax, title, warranty (if you want that) fees on top of the vehicle price.

I would say something like this "listen I like this car and I want you to make money but I want to pay a fair price for it. I think 10k is a little too much. I will give you 7k cash for it right now"

Then don't say anything. Let it brew in their mind.

Another tip, don't say too much. Silence can be priceless in negotiating.

Don't be afraid to walk out and don't ever say you need a certain car.

Good luck OP. Let us know how it goes.

 

[stack bundless]

^ good tips!

 

[classy freshman]

Thanks for the info. I am going car shopping in a few weeks. I will update the thread and let you guys know how it went

 

[rawex5]

May the lemon be without you.

 

[picknroll24]

Do not tell them you are paying cash until you have agreed on the price. Make them think you will be financing the car and drive the price down, once you reach the agreement tell them you will pay cash.

Another technique is to walk in with the business card from another dealer with some figures written on the back  and tell them that was the best the other dealer could do, obviously the figures should be reasonable otherwise they will catch on.

 

[throwback1718]

First option is try to find someone in your area to take you to a dealer auction if possible.

These are people who only have access to these auctions because they have a dealer license.
Most will take you and a bunch of others for free unless you leave with a car. Then they will ask for some cash. Maybe around $200-$300 (in my experiences)

You can find some people who do this on craigslist. Just keep your eyes open and stay safe.
You can definitely come up nicely at a dealer auction.

Secondly, if you choose to go private, you can definitely beat someone down on the price.

Remember just the same way you would low ball them on a price, they are actually looking for less than they advertised. They overpriced their car to cover themselves.
Lowball, and then thats it. You must make sure you find all the flaws of the car first before making an offer.

Its basically the same method of if you were to walk into a dealership... Just more paper work and taxes. So make sure to factor those fees in before you settle on a price.

For example, If you have $9K to spend, and taxes and plates and registration fees tally up to $800, then try to get the car for $8000. $8800 Total.

I am a firm believer in not spending all my $$ so I would feel good to have that $200 extra to put gas in my car and all the little accessories.

Thats 9 racks right there my %*+#$ in budget

 

[rareair45]

Originally Posted by wizards23

My boy works at a car dealer so I have some "inside" info lol...

First off, most used cars have a huge profit margin for dealers. They usually get them from auto auctions where they pay less than your would think

Example, they got a 2008 Audi R8 from auction for 42k. They are going 80-90k on autotrader.

I hear stories from him where they get cars for <5k and sell them for 15k+.

On a 10k car they may have paid 3k-5k. I would offer 7k cash to start. I think it's important that you throw out the first number. This is an anchor point from which to negotiate from.

Remember there is tax, title, warranty (if you want that) fees on top of the vehicle price.

I would say something like this "listen I like this car and I want you to make money but I want to pay a fair price for it. I think 10k is a little too much. I will give you 7k cash for it right now"

Then don't say anything. Let it brew in their mind.

Another tip, don't say too much. Silence can be priceless in negotiating.

Don't be afraid to walk out and don't ever say you need a certain car.

Good luck OP. Let us know how it goes.

The days of getting STEALS at auctions are gone. With Manheim online EVERY car dealer in the country has access to be able to bid on them without being there. The numbers you have given for cars are just not true. No r8s have gone for 42K. Not even a wrecked salvage one would go for 42k....