I’m new to buying used - I’ve always did well with new car prices, checking guides etc. But with used car prices there seems to be less room for haggling. How much can I ask for under “dealer price” in general? I use NADA and Edmunds price guides. Any experience, suggestions to offer.
Kelly Blue Book:
There’s a lot more room to negotiate on used cars than new cars. At the dealers I’ve been at it’s not unusual to pay $6000 for a used car and sell it for $10,000. Go to KBB.com and look up the trade-in value. I guarantee you that 90% of the time the dealer did not offer someone more than trade-in for a car in excellent condition. Not lots of margin of profit on many new cars and sometimes it’s hardly worth their time (Volkswagen Rabbit). In summary expect big savings if you’re a shrewd negotiator.
On used, I think there is more room for haggling. I would start somewhere near a private sale or trade in price and be prepared to go up. Dealer price is a starting negotiating price that I think the dealer knows he has to go down from, so I ignore it. I have also noticed that some dealers in my area will start at an asking price $1000 or more above NADA dealer book, just so they can knock off $1000 and look like they are providing a good deal to unknowledgeable customers.
Offer half what they are asking. They will refuse. Give them your phone number and say “call me if you change your mind”. They will call within 24 hours and will then negotiate seriously with you. Sometimes, the serious negotiating will begin without the second trip back to the lot…
For your part, YOU need to have your cash or financing lined up and be ready to close the deal when the price suits you…Don’t play games with them…
I’ve found the Edmunds prices to be reasonable, but that migh be different in your area.