Buying Tips

10 Steps to Buying a Used Car

Whether you are buying a used car from a dealer or a private party, let them know you have the cash in hand (or financing arranged) to make a deal on the spot. Preface your offer with a statement like, "I'm ready to make a deal now. I can give you cash (or a cashier's check) now. But we need to talk about the price."

At this point, you need to have a persuasive argument about why the price is too high. So let's talk about pricing. The foundation of successful negotiation is information. This is particularly true when buying a used car. And yet, the condition of used cars means prices will vary widely.

Edmunds.com has removed much of the guesswork in used car pricing by developing True Market Value pricing. After you have gathered information about a car you are considering, look it up on the Edmunds.com used car pages. When you're finished, print out the three TMV prices: Trade-In, Private Party and Dealer Retail.

Dealers have lots of experience negotiating. Most private parties do not. Therefore, buying a used car from a dealer or a private party will be two very different experiences. But there is one overriding similarity — they both want to sell the car. In fact, the incentive to sell the car might be greater to the dealer than to the private party owner.

You should, however, follow these guidelines when negotiating:

• Only enter into negotiations with a salesperson you feel comfortable with
• Make an opening offer that is low, but in the ballpark
• Decide ahead of time how high you will go and leave when your limit's reached
• Walk out — this is your strongest negotiating tool
• Be patient — plan to spend an hour or more negotiating
• Leave the dealership if you get tired or hungry
• Don't be distracted by pitches for related items such as extended warranties or anti-theft devices
• Expect a "closer" (another salesman you've haven't previously dealt with) to try to improve the deal before you reach a final price