However if you can find a single owner car and you can see that good maintenance of the car has been done than you might find some very good deals with the private party. You should check the price of the vehicle with a rough estimate of 100,000 miles and then increment the mileage by 20000 and more and see the variation in the price. This will give you a good idea of the price of the car you are looking at. Also as a general advice I heard from an expert car salesman "Never make the first offer". Whether you are buying or selling it is always advantageous if you are able to get the other person to come up with a price first. Although it might not be possible to apply this strictly in all the cases but you should always try to follow this rule. By asking the other person to come up with a price you come to know of how good the other person has done the research about the product and then you can act accordingly. Even after the negotiations it is very important to go through the paperwork for a used car properly as minor negligence could cause lot of time and money wasted in the future.
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1. Dealing with individual sellers 2. Asking price 3. The Offer 4. Lower Offer 5. Remain in Control 6. Be prepared for the Closer 7. Closing the Deal |
1. Dealing with individual sellers: If you are purchasing at a lower range you would have to go with an individual seller. You can get information of individual sellers from these links online. However it is also required to prevent from online frauds which occur nowadays. Once to go to the sell and the seller mentions the price ask him what he would really need to get out of the car. They always have a figure in their mind about their car. Once I was looking for an old classic car. The seller was selling the 1967 oldsmobile for $14k. After looking at the car I did not think it would be worth that much and I mentioned what he would really need to get from this car. The answer came as $8,000! after waiting for 15 seconds I shook his hands and closed the deal.
If you have ready cash this can be further advantage if the person is in urgent need of cash and you might be able to lower the price a few hundred dollar more. If the seller knows this business and is an experienced one he might come up with the question: how much are you offering for this and so escape from the question. Generally you would not be able to make a great deal with this person. The answer to this question could be: how could I quote a price without looking and inspecting the car first. You can then make an appointment or if he sticks on having a range for the price you can move to the next one.
2. Asking price: Many buyers do not realize that the prize generally quoted is only- The Asking Price- just that and nothing more. It is upto you how much you are able to negotiate for the vehicle and are able to bring the price to a price which truly reflects the quality and condition of the vehicle. The experienced salesperson will look at your reactions to the car the first time you are viewing the car and will instantly determine how negotiable the price will be for you.
During this time make sure you do not let the other person know much you like the vehicle like the color, the vehicle condition, etc. Before the test drive of the vehicle look at all the options both inside and outside and mention all the faults you see in the vehicle. Finally during the test drive look for any loud noise and mention it. If you find the vehicle to be good and worth purchasing move to the next part – The Offer.
3. The offer: Even if you like the vehicle very much and do not have any other cars as an option still do not let the seller know about this. Quote a price at least 15% less than the asking price and commit to the deal only if you get a reasonable price. Cash can be a great motivator and if you make a reasonable cash offer chances are high that it would be accepted. If the seller does not like your initial offer, you can either make another offer or wait for a counter offer by him. One of the most important things is to keep quiet after you make your initial offer.
Do not justify your lower offer just keep quiet till the other person speaks. This moment would be very awkward but it does have a lot of positive effect. Ex:- If the asking price of the car is $4500 you should make an offer at least $500-$750 less than that. All experienced sellers inflate the price by a few hundred dollars before advertising to keep a room for negotiating with knowledgeable customers. If you do not negotiate with the seller than essentially you are leaving the money on the table.
4. Lower offers: Most of us have seen real low offers and have been offended by it however we shouldn't be. Someone is always trying to make a gain out of this and in the used cars this is more so. If you are buying from a dealership and he is selling for lets say $10,000 you can give a low ball offer of $8,000, cash instantly. Either take it or leave it. If the dealer is selling for $10k he would have got it for at least few thousand less. By giving cash instantly you are able to give him an idea of instant profit he might make and not what he would have after few days. Or you might get a deal somewhere in middle.
5. Remain in control: If after you have made the offer the salesperson goes to speak with his manager get up and go somewhere else. Either to get a glass of water or to see some other car. This would show to him that you are in control of the process.
6. Be prepared for the Closer: If the salesperson is not able to get a deal sometimes a Closer is sent. The closer is not a scary person but rather a more skilled salesperson who has been in this business for a longer time. They come with different market figures to justify their price. Also there are other add-ons they might like to sell to you however be sure what you want before entering the dealership.
7. Closing the Deal: It is very much possible that in the middle of the negotiations the salesperson or the closer would finally say that "we have a deal". However remember at that moment nothing is fixed until it is finally signed in the contract. The insurance papers required by the state would need to be signed and several other related documents will be brought.
After the deal you will see some similar breakdown of fees:
sale price of car: $9,700
Documentation fee:$42
the smog fee paid to the seller:$40.50
Smog fee certification:$9.25
Sales tax:$891.25
License fee:$198
Total: $10881
As a final piece of advice check the insurance rates BEFORE you purchase the car. you can use these tips to reduce your insurance bill. Many times people are shocked to find that their insurance premium on mustang gt is 3 times of what they had originally thought of. Once you have purchased the vehicle it is good to go through some basic maintenance tips to make sure the vehicle lasts a longer time.
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