The most stressful part of shopping at used cars dealerships is negotiating with your salesperson. By doing some research before visiting the dealership and preparing yourself for the haggling you may face, you can feel confident while you negotiate a good deal for a used car.
Thanks to online car buying services like CarsDirect, you can often find a great used vehicle that meets your needs without leaving home. By requesting a no-haggle quote on the Internet, you will be put in touch with a specially trained Internet sales manager who provides up front pricing and a lower-stress environment than a traditional salesperson on the showroom floor. Even if you don't find the perfect vehicle online, you can complete helpful preliminary research by researching makes, models, trim levels and optional equipment. By using vehicle valuation tools, you can also determine the fair retail value for your preferred vehicle and determine what the trade-in value is. Used car dealerships try to purchase vehicles for their inventory at prices close to the trade-in value. These tools will give you more negotiating power when you visit the dealership.
Anytime you have to rely on the salesperson for all of the pertinent information on such a big purchase, you are putting yourself at a great disadvantage. For instance, if you haven't really considered your purchase requirements before you arrive at a used car lot, you could easily fall prey to a sales pitch that convinces you to buy more car than you actually need. Furthermore, you can't expect a used car salesperson to be an expert on all of the automotive brands on their parking lot; nor can you expect to receive unbiased information from the salesperson. If you ask well-informed, substantive questions during the sales process, you'll be a much more effective negotiator.
Before you arrive at the used car lot, you should consider the power that you actually do wield: your purchasing power, along with your well-informed status, makes you a force to be reckoned with. Unfortunately, many shoppers cede far too much power to their salesperson and are thus much more likely to be manipulated or swindled. For example, most used car salespeople are adept at getting shoppers to disclose their monthly salary, their credit status, and especially their ideal monthly payment early on in the sales process. If you excitedly provide all of this information, it can actually be used against you by a salesperson who can make it seem as though they will be doing you a favor by selling you a car. In reality, it is the salesperson who depends on you for their livelihood.
When you arrive at the dealership, be calm. Some used car buyers recommend having a meal before visiting the dealership in order to keep you from getting hungry and agreeing on a deal that may be less than perfect. Inform the salesperson that you're not planning on purchasing today, but that you would consider buying if the deal was right. Your salesperson may want to ask you a few quick questions in his or her office before going on a test drive. It is a good idea to take advantage of this opportunity, as it will also let you learn more about how trustworthy your salesperson is. If you'd like to go on a test drive, the salesperson will try to get you to fall in love with the vehicle, so that your desire for the car becomes greater than your desire for a good price.
During their pitch, a used car salesperson may try to rush you into an impulsive purchase decision. However, if you clearly indicate that you are in no rush to buy, and that you plan to visit other facilities before making your decision, you will be in a much stronger negotiating position. Furthermore, once you have compiled additional information from other sources, you'll be able to talk much more intelligently with the salesperson upon your return visit.
After your test drive, the salesperson will invite you back into the dealership to negotiate. This is when your skills can save you thousands. Focus on negotiating a cash price before taxes or fees. This will allow you to compare the offers from the dealership with the trade-in pricing and retail pricing you found online ahead of time. Negotiate a price within 10 percent of the trade-in/wholesale value of the vehicle. If needed, inform the salesperson that you will leave if the process takes too long because of their trips to and from their manager.
Once a cash selling price is agreed upon, have the dealership include all taxes and fees. Be wary of excessive fees that are not mandated by your state Department of Motor Vehicles. Once this amount is settled, you can proceed to completing a finance application. As you finalize your transaction with the finance manager, remember that they too are a commissioned salesperson. They will also attempt to sell you warranties and insurance policies that you may not need, or that may be available elsewhere for a lower price.
