Anna Posted March 25, 2009 Share Posted March 25, 2009 (edited) I'm out of practice. When you find a used car at a dealership that you're interested in buying and say their asking $6,000 for the car, at what amount would you begin making offers? How low can you reasonably go with your offers and still expect the dealership to seriously haggle with you? Is there a formula you use when haggling over used cars? Edited March 25, 2009 by Anna Quote Link to comment Share on other sites More sharing options...
JFSinIL Posted March 25, 2009 Share Posted March 25, 2009 I think there is something called a "blue book" with prices/values in it you can research first, so you know if the dealer is asking waaay too much. Quote Link to comment Share on other sites More sharing options...
Anna Posted March 25, 2009 Author Share Posted March 25, 2009 Yes, and I have already been looking at the blue book prices. I'm wanting info to learn how to haggle when starting at the blue book value or whatever price the dealership is asking for the car... like I explained in my OP. Quote Link to comment Share on other sites More sharing options...
MamaT Posted March 25, 2009 Share Posted March 25, 2009 My dh always just tells them what he is willing to pay for the car. They usually come back with something in between that you can either accept, or stick to your guns with your original offer. We have had them come back and accept our offer after they saw we were serious about that amount being what we would pay. Quote Link to comment Share on other sites More sharing options...
Anna Posted March 25, 2009 Author Share Posted March 25, 2009 My dh always just tells them what he is willing to pay for the car. They usually come back with something in between that you can either accept, or stick to your guns with your original offer. We have had them come back and accept our offer after they saw we were serious about that amount being what we would pay. OK, but how do you know what is a reasonable dollar amount to offer? Again, going back to my OP example-- like if they're asking $6,000 for a car, what would be a reasonable starting offer to give them? Quote Link to comment Share on other sites More sharing options...
Suzanne in ABQ Posted March 25, 2009 Share Posted March 25, 2009 What everyone is trying to say, is that you can't start with a price, and execute a program to get an offering price. You need to know the actual value of the car. You can't just assume the dealer is asking 10% more than it's worth, or 12 1/2 %, or anything like that. You need to do your homework, and find out what a comparable car is worth in today's market. You can do that online, at bluebook.com (I believe) or similar websites. (more than one is better). Then, when it comes time to haggle, you go to the dealer, and tell him "I have researched similar cars in Bluebook and 'whatever', and, based on the condition of this car (the number of miles, options, etc), I believe this car is worth $such-and-such." If he believes he can sell to someone else for a higher price, he'll turn you down. If he believes that your price is as good as he's gonna get, he'll sell it to you. If you make him really mad, or show that you don't know what you're doing, he'll either blow you off, or try to manipulate you. Many factors go into his pricing, primarily the price he paid for the car. If you offer him less than he paid, he's gonna turn you down flat. There are no formulas, sorry. Quote Link to comment Share on other sites More sharing options...
Anna Posted March 25, 2009 Author Share Posted March 25, 2009 (edited) You need to know the actual value of the car. You can't just assume the dealer is asking 10% more than it's worth, or 12 1/2 %, or anything like that. Right. I guess I'm not explaining myself too well. Let me try again. Many of the used cars we're seeing are priced right at or close to blue book value. If a dealership is asking $6,000 for a car and blue book has its retail value at $6,000, where is the bargaining room? Would they possibly still take an offer? Can we assume that they'd consider an offer lower than blue book value and if so, what would be an example of a reasonable offer in this case? Edited March 25, 2009 by Anna Quote Link to comment Share on other sites More sharing options...
elegantlion Posted March 25, 2009 Share Posted March 25, 2009 Right. I guess I'm not explaining myself too well. Let me try again. Many of the used cars we're seeing are priced right at or close to blue book value. If a dealership is asking $6,000 for a car and blue book has it valued at $6,000, where is the bargaining room? Can we assume that they'd consider an offer lower than blue book value and if so, what would be an example of a reasonable offer in this case? It might depend on if you have a trade, how much down payment, or if you are paying cash. Is 6k the blue book for retail or buying from an individual? If it's retail, I figure the individual price and use that number for negotiation, maybe start a little lower. Quote Link to comment Share on other sites More sharing options...
Anna Posted March 25, 2009 Author Share Posted March 25, 2009 It might depend on if you have a trade, how much down payment, or if you are paying cash. paying cash, no trade Is 6k the blue book for retail or buying from an individual? $6,000 is blue book's retail value Quote Link to comment Share on other sites More sharing options...
elise1mds Posted March 25, 2009 Share Posted March 25, 2009 A humorous take: Forget blue book. Here's what we did when we bought our van. It was NOT supposed to work out this way, but it did work well. DH goes to the car lot. You sit at home, oblivious to the fact that DH is at the car lot. DH calls you and says, "There's X car here that's priced at Y amount. Should we get it?" You say, "WHY are you at the car lot?? And I'm not paying more than Z for a car, I don't care what it is." DH goes back to the dealer and you wind up paying Z. Also, go at the end of the month when all the dealers are desperate to make their commissions. Seriously, now... If a car is priced at $6K retail, you probably have about $700 worth of wiggle room (I'm guessing) from their perspective. Ask for a little more than you THINK you can knock off the price. They can always meet you in the middle. You can also always walk away from any of their counter-offers and tell them you'll think about it. Also, feel free to let them you are paying cash and make sure they don't try to hassle you with any fees. Some places charge fees for everything, and that can add back up in the end. Best of luck! Quote Link to comment Share on other sites More sharing options...
lynn Posted March 25, 2009 Share Posted March 25, 2009 Some banks carry the blue books for you to look up the info you need if you can't find it on line. Be sure to check the milage and Carfax report. Quote Link to comment Share on other sites More sharing options...
Anna Posted March 25, 2009 Author Share Posted March 25, 2009 Thanks for the info, ladies. Quote Link to comment Share on other sites More sharing options...
StaceyinLA Posted March 26, 2009 Share Posted March 26, 2009 I DID just buy a used vehicle last week (that I LOVE by the way). NADA is the value that most dealerships use because it is what most banks use. So, for starters, make sure you are looking at the NADA values and not KBB or something else. What you need to do is look at the TRADE-IN value of the car you want to buy. This is more than likely the amount that the dealership has put into the car (when they gave the credit to the person who traded it in on a new one). That is where you can get your bargaining room. If the vehicle is worth 6 retail, but only 4 on trade-in, you know you probably have a couple thousand gap to work with. Right now I would NOT pay retail for anything. We just purchased an '03 Toyota Highlander in nearly perfect condition (inside is like brand new, outside has a few minor dings, mechanical condition is very sound) and only gave a few hundred over trade-in (which I didn't mind because they put 4 brand new tires on it). I would NOT expect to go in and pay them retail. So check the trade-in value on the vehicle. That is where I'd start with my offers. Quote Link to comment Share on other sites More sharing options...
Anna Posted March 26, 2009 Author Share Posted March 26, 2009 Thank you, Stacey. You gave me something that I can put to practical use. Quote Link to comment Share on other sites More sharing options...
hillfarm Posted March 26, 2009 Share Posted March 26, 2009 I am not sure whether NADA is the same as this figure, but a dealer friend of ours used what he referred to as the Black Book price, which was the price a dealer would expect to pay for the vehicle. If you can get that price, you would know what it would cost the dealer to get another of the same vehicle. Then plan to pay somewhere between Black and Blue book prices. Quote Link to comment Share on other sites More sharing options...
Alessandra Posted March 26, 2009 Share Posted March 26, 2009 My recent experience was in buying a new car. I did all the research, but I am not a haggler. What worked amazingly well -- dropping prices far below what Consumer reports said was the best price -- was going to multiple dealers. The prices from all the dealers dropped dramatically, but were all within $100 or so from each other. It didn't hurt that I went at the end of the month either. I should think that a similar strategy could apply to used cars from dealerships also. There is a book, Buying a Car for Dummies -- not meaning to say anyone here is a dummy, just that there is book... Quote Link to comment Share on other sites More sharing options...
alpidarkomama Posted March 27, 2009 Share Posted March 27, 2009 You could fax a few car dealers and say the first person who can sell me this car at this price has a sale. It worked for a friend of mine. She had a new-to-her car in one hour!!! Quote Link to comment Share on other sites More sharing options...
MommyJo Posted March 30, 2009 Share Posted March 30, 2009 I'm very bad at haggling anything. I usually start too low and end up insulting someone ;). I'm a heavy penny incher though and try to save when I can. The good thing is that I get some really great deals sometimes, other times not so great. I was at a yard sale once and found a Henry Renard painting. I didn't know who he was at the time. Anyways, I told them I would give them $5 and they took it! This painting was so big that it wouldn't fit in our trunk! It was very elaborate and the frame was appraised at $350 alone! Quote Link to comment Share on other sites More sharing options...
Highereducation Posted March 30, 2009 Share Posted March 30, 2009 OK, but how do you know what is a reasonable dollar amount to offer? Again, going back to my OP example-- like if they're asking $6,000 for a car, what would be a reasonable starting offer to give them? My dh is great at this! Every time he's bought a used car from a dealer, he shoots for $300 over whatever the dealer's cost was. And we've always been able to make a deal for that amount. Quote Link to comment Share on other sites More sharing options...
Heather in OK Posted March 30, 2009 Share Posted March 30, 2009 :lurk5: I SO needed this thread! We're looking to replace our van that is on its death bed. lol We don't have a lot of money to play with and need to stick to our guns when we go shopping. Thanks so much for the tips!!!! :) Quote Link to comment Share on other sites More sharing options...
Hapax Legomena Posted March 30, 2009 Share Posted March 30, 2009 When you compare prices make sure you are adding $ for extras and subtracting $ as appropriate for features that are not comparable. In other words, make sure you are comparing like vehicles. Some credit union lenders have consumer oriented services that will help you (although other credit unions have indirect lending relationships with dealers and are less likely to help you negotiate with the dealer). You may want to check with a local credit union to get some help on vehicle valuation. One adavantage of buying from a reputable dealer is that the dealer has probably checked out the vehicle and made various repairs to it before putting it on the lot. Also, if you buy from a dealer you are better able to get resolution of problems you may later find than if you buy from an independent seller. Depending on your personality and risk profile you may prefer dealing with an organization rather than an independent seller. Having said those things, I have never purchased a used car from a dealer. I have bought two used cars from independent sellers without a problem. In one case, I got the maintenance records and talked to the mechanic who had serviced the vehicle. I also had my own mechanic check the car. He gave it very high marks, so I bought it. Quote Link to comment Share on other sites More sharing options...
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