Being able to negotiate a used car’s price is something that can save you thousands of dollars when buying a car, but it isn’t always easy. Kelley Blue Book is a free resource that almost every car buyer should know about. It will tell you the fair market value of your used vehicle and how much money to offer the dealer in order to get the best deal.
Research Before Negotiating
The very first thing you want to do before negotiating a used car’s price is research. Research the Blue Book value of the vehicle you’re interested in buying, along with any competitors’ cars and gray market vehicles for sale (cars that were never sold as new). Ultimately, this research will help you understand what someone is willing to pay for a car in its current condition.
You should also spend time researching your own finances and credit history before you start looking at used cars in pawtucket ri. Determine exactly how much money you can afford to spend and where it’s coming from so that you can avoid wasting time looking at cars that are out of your budget range. Check your credit reports with all three credit bureaus. If there are any errors, dispute them immediately.
Know The Dealer’s Margin
The dealer’s margin takes into account the dealer’s overhead expenses, such as employee expenses and dealership fees. While it is possible to negotiate a lower price with a dealer, it isn’t likely that you can get them down to zero or even below their dealership fee. However, if the salesperson is willing to go down on the price but not too far, consider offering to pay some of the dealership fees for them in order to get a better deal. Or offer to buy your car from a different location that doesn’t have as high of fees.
Know Your Credit, Credits And Consequences
You may have already made a payment on your vehicle or you may be planning to in the near future. Either way, if you’re financing a car, you need to know exactly what your interest rates are and what your monthly payments will look like. If you can’t afford as low a payment as the dealer is offering, it’s better to know this than negotiate down to an amount that’s just not possible.
If there are any credit issues with the vehicle being sold, speak with your lender immediately. The lender may be able to negotiate a lower price or even cancel out the financing altogether if they want out of that deal too.