Negotiating a used car price with a private seller is typically easier and more hassle-free than negotiating with a professional dealer. However, you need to do your research and show up with a strategy that you can stick to when it comes time to talk price.
Prior to contacting the seller, research the value of the used car based on its mileage and description. The Kelley Blue Book and NADA Guides are popular options for looking up private party and retail values. As you research, look at low and medium values in the general book, but also research what similar cars are selling for you in your area, according to NADA Guides. Knowing what the book value is of the vehicle and what the seller is likely to get in your area sets the stage for an effective negotiation.
Private sellers often prefer the simplest and safest deal possible with a serious buyer. Lining up financing before making the initial call helps you project the image of a serious buyer. When you contact the seller, let him know that you have already lined up financing and are just waiting for the right deal to come along. This stance also alerts him to the fact that you aren't desperate. Getting locked in to one car contributes to a propensity to get emotional or impulsive in negotiations, which takes away from your disciplined approach.
After you test drive the vehicle and decide you have interest, make an offer 15 to 25 percent below what you are actually willing to pay. In some cases, private party sellers are so anxious to get the cash or get out from under the vehicle loan that they jump at the first offer. When engaged in a negotiation, increase your offer in small increments until the seller accepts or you reach your maximum price point.
One way to avoid getting consumed with one car is to identify two or three cars of interest before you make your calls. Knowing you have other options gives you leverage in the negotiation process and helps you stay disciplined. Be willing to leave without the vehicle if the seller won't hit your price point. Leave a phone number or email address and invite the seller to contact you if he changes his mind. If he sits on the car for a while or realizes a dealer pays much less, he may call you. By that time, you may have already negotiated a better deal with someone else.
