Are you wondering how to negotiate car price on second hand cars? Do you want to negotiate used car price but are unsure of the research and information you'd need to do so? If so, then you need to learn about how to put more leverage in your corner.
Learning how to negotiate used car price isn't difficult! You can get a better car price by merely performing a thorough check on the car's history, model information, average asking price (also known as a car price check), and so on.
See below for more information on how to negotiate a car price that's fair to both you and the seller. That way, everybody wins!
1. Check the VIN
Not enough people use the car's history when trying to negotiate a lower price. Doing so can help you purchase the car you have your eyes on at a price that's lower than the sticker price.
If you're looking for leverage when you go to negotiate car price, then the vehicle history report is the number one way to get it!
Start by checking the VIN (Vehicle Identification Number) from a credible source such as EpicVIN.com. As you can see by one of our sample vehicle history reports, we can offer you a plethora of helpful information when buying a used car and getting a fair sales price.
Our vehicle history reports offer you information on things such as:
- Accident history
- Open safety recalls
- Odometer
- Mileage check
- Owner history
- Vehicle details
- Mileage/Year dependence
- Junk/Salvage/Insurance records
- Title history & more
Using this information, you can ensure that you have more confidence during the negotiations process. If all checks out, then you can negotiate car price knowing that the car is in great shape with a strong history behind it. All that's left is to find a good deal on it.
2. Factor in the Entire Payment
Far too many car owners end up with a monthly payment they're unhappy with for one reason: they don't factor in the entire payment. That includes thinking about things such as your auto loan and its interest rate, the loan term, car insurance, and so forth.
You have to think about these things because the private seller or car dealer won't. They don't care what it costs you to afford the car once you shake their hand.
Before you go to purchase a car, be sure to consider all your options for an auto loan. For example, you might consider the American Express Auto Purchasing Program.
This program allows you to search for the car you want, see the actual price you'll pay (including fees and incentives) then use your AMEX towards the purchase.
Even if you don't go that route, it's always wise to get pre-approved for an auto loan. That way, when you go to negotiate second-hand cars, you know your limit. It will keep you accountable for finding a car that's in your price range.
It can also help give you more leverage in negotiations. If the dealer doesn't meet your budget, then you should be ready to walk. Odds are, they won't let you walk!
3. Schedule a Test Drive
You should never purchase a car without taking it for a test drive. Even if you've driven the same year, make, model, and trim level at a different dealer, you need to always take it for a test drive.
If the drive doesn't live up to your expectations, then don't be afraid to walk away. There will be other cars in that make and model that pop up for sale, even if it isn't for a few weeks.
Scheduling a test drive puts you in control. When learning how to negotiate a used car price, be sure to pay attention to how the car handles, the car's interior quality, exterior quality, tires, make sure all lights are working, and so forth.
The idealogy behind how to negotiate new car price works the same way. Take it for a spin, pay attention to the feel and look of the car, then go from there!
4. Research the Car's Value
Contrary to popular belief, negotiations don't start at the sticker price that the car dealer or private seller has listed. They can put any price they want, but that doesn't mean they'll get it.
The negotiations actually start at the second-hand car's Kelley Blue Book value. For those of you that don't know, KBB is a price advisor tool that educates consumers (such as yourself) on what the car's price is worth based on numerous factors.
Once you have that in place, you can start negotiations right away. This will almost guarantee that you get a better price during your talks with the dealer. Just make sure to stay respectful.
5. Improve Your Credit Score
The only way this doesn't apply to you is if you already have an excellent credit score (800 or above). If your score is anything else, then it can be improved.
A good credit score (750 or higher) can help you get the cream of the crop in terms of rates and price points. Dealers are happy to give you any price (within reason) because you have a proven track record of repaying your debt.
Make sure to research different ways to improve credit scores. Look up your score before you visit the dealership so that you know what to expect.
Negotiate the Best Deals on Second Hand Cars
Now that you have seen the best ways to get great deals on second hand cars, be sure to use this information to your advantage.
If you'd like, be sure to visit our VIN check by state page so that you can unlock your free vehicle history report.
No matter where you are in negotiations for your next car, be sure to use our services to your advantage. Best of luck!
