Used Cars: Used Car, honda dealership, blue book value

Question
Hi Robert,

Due to short notice I was have about a week to purchase a car.  This is the first car I am purchasing which I know will be a used one.  I just graduated from college and started working so my budget is fairly limited, about 11,000.  I am almost positive I am purchasing a Honda Civic because of the gas mileage.  I was thinking about purchasing from CarMax.  Also important to note is that I am able to pay off the car completely, will that give me additional bargaining power?  Any advice will be greatly appreciated!

Regards,

Mike

Answer
Hello,
I assume by "pay off the car completely" you mean paying in cash?  If this is the case, i'd suggest checking smaller used car dealerships, or shopping around in the local classifieds... Smaller dealerships will usually go lower at the idea of getting fast cash, larger dealerships it doesn't make much difference as they get income from payments as well... A civic is a good choice, and you should be able to get a really nice one for that price.  I don't know anything about CarMax... so i cannot comment on that company.. I can suggest smaller dealerships (or used branches of larger ones) and local sellers, but it will be well worth it for your cause to search for a certified pre-owned from a honda dealership... the warranty could be VERY helpful.. some other smaller dealerships also offer (not AS good) warranties so spend the extra, it will save you a headache later.  If you go with a private party, get the car checked out before purchasing it, if they wont let you then something is obviously wrong.  As for bargaining, research, research, research... find out the blue book value, what similar ones are going for locally, and use those values as good price reducers, also.. set a max price, and dont be afraid to leave if you can't get them to go that low... Offer a low-ball price if you feel up to it, make them work up from there.. Look for an 11,000 listed car, and offer 9,500.. or 10,000 out the door, if the dont bite, they will atleast end up selling at lower than your max at 11,000 - and thats after tax,tag, etc... They wont be super flexible with a civic, because resale is really good on these cars, but you should be able to knock off 1-3 thousand... other than that.. research, warranty, and if its a private party get it inspected.. thats about all the advice i can give... If you want more bargaining advice, let me know when you find the car you want, I can tend to the exact situation much better.  Hope this helps and good luck!
-Robert