I’m thinking about paying cash for a used car, but I’m not sure I should divulge this to the dealer. Are dealers more likely to give you a better price on a used car if they know you are financing with them, or does it not make a difference?
Also, how much off the listed price should I expect on a $30,000 car if the car was previously on lease? Any thoughts on the dealer mark-up?
Also, how much off the listed price should I expect on a
$30,000 car if the car was previously on lease?
That depends on several variables, (like supply and demand), but it depends heavily on how well you do your homework.
The dealer is professionally trained to get the most money from you and still have you walk away with a smile thinking you got a good deal.
If you don’t do your homework, it’s like going to war with a water pistol, and the other side has guns.
Dealers really don’t care where you get the financing from. I NEVER talk about method of payment until AFTER I negotiate a deal. Many dealers will try to get you tell them how much of a payment you can afford to play…I tell them…“That’s none of your business.”
You need to go to web sites that can give you current used car values, KBB, Edmunds, and NADA all give current pricing info. These web sites will approximate the value, if you go to several you’ll see they don’t give the same exact numbers.
It is hard to say what the dealer has invested in the car they are selling with a used car. You know it is a lot less than the 30K asking price. Generally there is more profit per car in used cars than new ones. For a 30K asking price they likely have 20K invested in it. There is a lot of room to negotiate. They’ll show you “papers” to justify their price, but who knows where those numbers come from?
The only way to get a good deal on a used car is to be willing to let the car go. The more you want it, the more you’ll pay for it.
Even from a dealer you need to get the car inspected by an independant mechanic. Dealer inspections won’t help you when whatever warranty they are offering ends. After the independant inspection you will likely find issues with the vehicle that can help in your negotiation on price.