How to negotiate the price of a used car (without the games)
You do not need to be pushy or clever to get a fair price on a used car. You need to know what the car is worth, know your limit and stay calm. Most of the work happens before you ever speak to the seller.
Do your homework first
- Look up what similar cars, with similar mileage and condition, are listed for in your area.
- Note the car's history report and any issues it shows, since they affect value.
- Know the out-the-door price, not just the sticker price. See what out-the-door price means.
- Get a loan pre-approval so you know your financing options before you talk price.
Decide your number
Before you go, decide the most you are willing to pay out-the-door, and write it down. If the deal cannot reach that number, you walk away. Having a limit decided in advance, when you are calm, protects you from deciding under pressure.
Start with a reasonable offer
An offer that is a little under what you are willing to pay, backed by what you found in your research, is taken more seriously than a very low number. Explain your reasoning briefly: "Similar cars are listed for a bit less, and this one has had a repair that shows on the report."
Negotiate one thing at a time
- Agree on the price of the car, in out-the-door terms.
- Then talk about your trade-in, if you have one, as a separate item.
- Then talk about financing.
- Decline add-ons you do not want.
Mixing them lets one number hide inside another. A big trade-in allowance can disguise a high price, and a low payment can disguise a long loan.
Use what you found
Problems from the inspection or test drive, such as worn tires or a repair needed soon, are fair reasons to ask for a lower price. Get an estimate for the repair and use it.
Be polite and ready to walk away
You can be friendly and firm at the same time. If the price does not reach your number, thank the seller, leave your phone number and go. Many deals are made after someone has walked away, and if not, there are other cars.
Private sellers and dealers
A private seller often has more room to move on price, because they have no overhead, but they also may not know the car's value. A dealer has costs to cover and usually works from a floor price. In both cases, a fair offer backed by facts works best.
Common questions
How much can I negotiate off a used car?
It depends on how the car is priced against the market. A car priced fairly has little room; a car priced above similar cars has more. Research is what tells you which.
Should I tell the dealer I have financing arranged?
Many buyers keep that quiet until the price is agreed, so the price discussion is not mixed with financing. Either way, agree on the out-the-door price first.
Is it rude to walk away?
No. It is a normal, polite part of buying a car.
Keep reading
General information, not legal, tax or financial advice. Rules and prices change and differ by state; check with the right professional or your state agency before you act.