Tips for Negotiating Used Car Prices

As previously stated, we recently bought a mini-van. The seller had mentioned "PRICE IS FIRM" in the online listing. Still, we were able to knock $500 off the asking price all because we tried. In fact, we didn't have to negotiate at all. Our request for a lower price was automatically accepted!

Point of the story is that you should attempt to negotiate a lower price with everyone - private sellers, used car dealers, and even "price is firm" sellers.

Always remember that the worst that will happen is they say no.

Performing an estimated value check on used cars you like arms you with valuable car buying information. You are able to set a realistic expectation and you are giving a negotiation tool should the seller ask for more than the vehicle's estimated value.

There are two ways that you should perform an estimated value check.

Car Search Locally: Use an application, such as the Cars for Sale Android app to find similar makes, models, and years for sale in your area. You see how much other similar vehicles are selling for.

Kelley Blue Book: The Kelley Blue Book website is an amazing resource and it is free to use! You can mark extra features (such as an alarm system or GPS) and it is a must-have, as all of these features can raise a car's estimated value up.

It is easy to perform an estimated value check on new or used vehicles. You can visit the Kelley Blue Book website to perform a free search. However, here are some helpful tips.

* Get as much information about the car as possible; the most up-to-date mileage, the extra features, and so forth

* Make sure you select the right option. For example, you will find that the same makes and models have different estimated values for private sales, dealer sales, and trade-ins. If attempting to buy and negotiate with a private seller, you want the accurate estimated value.

* Choose an accurate description. Marking a vehicle in good condition will result in a lower price, but if the used car really is in excellent condition, you obtained this estimated value with inaccurate information.

* Value check all vehicles you are interested in buying. Lets say a little bit of research online has narrowed down your choice to 5 vehicles (1 of which you REALLY want). Still value check all 5 vehicles, as you always want to have back-up plans in place.

* Don't forget to print your results. If a car seller is charging above the Kelley Blue Book's estimated value, you can whip out this piece of paper as a negotiation tool.

We just bought a mini-van a few months ago. As much as we would have liked a newer 2009+ model, our budget was only $5,000. All the best negotiations in the world would not have helped.

It is important that you have a realistic goal in mind when attempting to negotiate used car prices. Car sellers (both private sellers and dealers) are willing to negotiate when presented with a semi-realistic offer. Automatically expecting the seller to take $3,000 off the car's estimated resale value isn't going to work.

A key to negotiating used car prices down is to have proof that backups your request for a reduced price. What tools should you have on hand?

Cars for Sale Android App
Print Out of Kelley Blue Book's Estimated Value

The Cars for Sale Android App enables you to search 1000s of car sites at once. You can search with a make and model. The goal is to find other similar makes, models, and mileage in the area. Whip out this app and show the seller that you can get a better deal elsewhere. By being ready to buy right then and there, but by also being ready to head for the better deal, most sellers will compromise or agree to your negotiations.

A print out of the Kelley Blue Book's estimated value is nice as this is a common tool used. It provides accurate and up-to-date information. Your print out will include an estimated value for cars in excellent, good, and fair condition. So lets say the seller lied and their good car is actually in fair shape. If you are still interested, use the estimated value for "fair" condition as a starting point in your negotiations.

NOTE: Keep in mind that as great as the Kelley Blue Book is, it is just a resource guide. Sellers can charge whatever they want for a vehicle and most do. That is why using a Android app, like Cars for Sale, is advised. You physically show them that you have a better alternative possibly right down the street.

As mentioned above, it is a good idea to value check the vehicle or vehicles you are interested in buying. This gives you realistic expectations and a good guide to follow when determining if you are getting a good deal.

When negotiating used car prices, always start your negotiations at less than the estimated resale value.

For example:

The estimated resale value is $6,000.
The seller is asking for $6,700.
You toss out the offer of $5,500.
Your offer is refused.
Start working your way up towards the estimated value of $6,000.
If the seller still refuses to budge, then whip out the estimated value print out explaining why you refuse to pay their asking price.

After a little bit of car searching online, you come across your dream car. It has low mileage, is your favorite make and model, it is even the perfect color! Of course you can't help to get excited. But STOP! This excitement can ruin your chances of being able to success negotiate the price.

They key is to meet somewhere in the middle.

Always express interested in the vehicle. Show that you are willing to buy IF the price is right. Sellers are more likely to accept negotiations when they know a sale is likely.

Don't give the impression you must have the car. By doing so, you create the impression that you want it no matter what. You are basically a guaranteed buyer at this point in time; the seller has no reason to lower their price.

We often assume that one of the best ways to go about negotiating used car prices is to say "My budget is $5,000; I can't spend more." Your limited budget can be used as a tool for negotiating used car prices, but you want to save it for the end.

As mentioned above, we were able to knock $500 off the asking price of our new-to-us mini-van. Our budget was $5,000, the car was priced at $2,500. If we had said upfront what our budget was, the private seller would not have knocked $500 off the price.

So NEVER state how much you are willing to pay until you notice your negotiations are falling. Some sellers will automatically accept your reduced offer without any negotiations. Mentioning your budget upfront can ruin a good deal you MIGHT have gotten.

Surprisingly, I have personally encountered sellers who were offended by my lower offer. I have gotten:

Do you think I am stupid?
Do I look crazy?
If I thought the car was valued at X price, I would have set it there to start with."
And so forth.

It is only natural to want to avoid these types of confrontations. Keep in mind, they are rare. Most sellers will understand your need to negotiate (as they too have been a car buyer looking to save money).

I am not advocating fist-fights or verbal brawls, but hold your ground asking for a lower price as long as possible. Do not worry about offending anyone (private seller or dealer). Why? Chances are, you'll never see them again after this exchange.

As mentioned above, a lower offer is likely to be accepted or a compromise will be reached when you offer support for that low-price. So focus on the "bads" of all vehicles.

Car buyers often make the mistake of not figuring in the cost of repairs. These estimated repairs should be included in your purchase price.

So let's say that during the test drive you notice the breaks need to be replaced, the oil is low, and you notice the car has bald tires. These are repairs you need to do right away. So estimate their cost at $300 and figure that into your offer.

So if you offer is $500 less than the selling price, state "I estimate the cost of replacing just the tires, brakes, and oil at $300; therefore..."

By making their good vehicle seem not so good, you are more likely to walk away a winner.

If you are buying an affordably priced used car, be prepared to pay and in cash. Speaking from experience, cash talks!

So you test drive the used car, look under the hood, and like what you see. Mention you are ready and willing to buy the car right then! In fact, you happen to have the cash with you. Are you ready to exchange cash for car now?

BUT (and this is a big but), you don't want to pay $5,000 like asked. You only want to pay $4,500. And, it so happens that is the amount you have.

At this point in time, the seller is thisclose to making a sale. Most will accept your offer right then and there (provided it is somewhat reasonable) just to walk away with the money!

NOTE: As you likely know, carrying around large amounts of cash can be risky. Never advertise upfront that you have the cash. Instead, do the test drive, start your negotiations, and then breakout the fact you are carrying.

Although rare, there are fake listings on classified websites that are nothing but disguises for robberies in waiting. Until you know the person and car for sale is legitimate, don't mention any money. Moreover, always tell a close friend or family member where you are going, whom you are meeting with, and when you will be back.

Hands down, the most important tip of all for negotiating used car prices involves being ready, willing, and able to walk away.

For example, a seller has a 2006 Ford Focus listed at $7,000, but you'd rather pay $6,000. They aren't budging on their price. Express interest in the vehicle, show other similar vehicles for sale in the area with the Cars for Sale app, whip out the estimated value from the Kelley Blue Book website, have your checkbook in hand, and let the chips fall where they do.

As previously stated, you want to express interest in the vehicle, but you don't want to make it seem like you MUST have this car. If you are going to buy anyways, the seller has no real incentive to offer you a deal.

Always revert back to the fact that you have other buying options with even better deals. You hold a lot of power by being interested, but willing to walk away.

If the seller is so close to a sale that they can touch see (or see it - cash or checkbook) most will fold like a deck of bad stacked cards.

Above, you got some great tips on negotiating used car prices covered in detail. Ready for a short recap?

* Value check all interested vehicles on the Kelley Blue Book website.
* Install the Cars for Sale Android app to research cars AND use as a negotiation tool.
* Have realistic expectations when tossing out a lower offer.
* Be prepared to walk away; be ready to head for a better deal.
* Show interest in the car, but don't get too excited.
* Cash talks = faster sale and faster money for the seller.
* Negotiate with anyone selling a car - private seller or dealer.