The demand for used cars is surging. In 2019, about 40.8 million used vehicles were sold in the US. Compared to only 17 million new vehicles sold in the same year. Used vehicles can be bought in several ways, including online and visiting a used car dealer.
Before purchasing a used vehicle, there are many factors you need to consider. Some of which can help you negotiate a better deal. To that end, you need to know how to negotiate a used car to get the best value for your money when you meet with the seller. This post covers some tips on how to negotiate used car prices, including how much you should expect to pay.
Tips on Negotiating the Best Used Car Price
The advantages of purchasing a used car are simply too many, which is why more Americans prefer to buy them. Not only are used cars much cheaper, but they also have lower insurance rates. They have a lower depreciation rate and no hidden fees. With a wide range of options and selections to pick from. Understanding how to negotiate will help you get value for your money.
Below is some used car how to negotiate price tips:
Regardless of whether you are buying a new or used car, it is always advisable to sort out your finances through a pre-approved financing offer before you even start shopping for the vehicle. People are always looking for a financing option that works for them best. While a dealership can help arrange your financing, they have no incentive to help clients find affordable solutions unless they have a counteroffer to beat.
Additionally, for most used car purchases, it would be best to avoid the trap of extending the loan’s length beyond five years. Once you have an auto loan from your lender, you can start talking to sellers. The deal can move more quickly after you decide on the right car for you.
Look for Private Used Car Sales
There are plenty of options available in the current used car market. You can cast your net wide to include car websites and local forums, spanning a wider geographical area. If you are looking for the lowest possible prices, consider looking at private car sale listings.
Essentially, when you purchase a used car through a dealership, you pay a premium for their sales and marketing efforts, employee salaries, the dealership’s rent, and their post-sale service. These costs add up, resulting in a higher price than a similar vehicle from a private seller. Platforms such as eBay and newspapers, and vehicle magazines are a great source of great deals on used cars. However, you need to know precisely what you are looking for and be able to separate a good deal from a bad one if you are looking to purchase a used car from a private seller.
Check the MOT Status and History Online
The fear that drives most people to purchase a new car is that you can spend a significant amount of money on what seems to be a fantastic vehicle, only to find it full of issues that were not visible at first sight. Fortunately, you can solve this issue easily by searching for the car’s MOT history online to spot defects and issues that could affect its reliability. To find a car’s MOT history, you need to have its registration number or mark in conjunction with its V5C registration reference number and the MOT test number. The MOT has a database starting from 2005 up to date.
Check the Car’s Valuation Online
An important negotiating factor is knowing how much the car is expected to cost for either a new or used purchase. This information can come in handy, especially if you meet a salesperson who tries to maximize profit. You can check a car’s valuation on platforms like WhatCar? and Parkers have information on the valuation of almost every make of vehicle. Some of these platforms allow you to download the valuation report, which you can take to the seller as a negotiation tool.
Inspect the Car for Negotiation Points
Some consider negotiation to be both a science and an art. It is usually easy to bring down the cost of a used car by showing the dealer similar listings, but it can be extremely difficult to reduce the price if you have no extra negotiating room. While inspecting the vehicle, look for scratches, dents, or any other imperfections on the bodywork, which you can use to request a discount, especially if they are obvious. You can also check for effects on the vehicle’s chassis, engine, electronics, suspension, and other components. Regardless of size, any defect you notice in a car can be used as a powerful negotiating tool.
How Much Is a Used Car?
As of 2020, there were about 280 million operational vehicles in the United States, representing an increase of about 1.6% from 2010. The rise in car demand has led to a shortage since most used vehicle inventories are declining. As an aftereffect of the pandemic, you can expect to pay an average of $30,000 for a used vehicle. However, remember, prices will vary depending on the type of vehicle, its year of manufacture, trim level, among others, so the figure could be higher or lower.
Most people who prefer to buy a used car don’t have tons of cash lying around, which means they will mostly take out a loan to finance the purchase. Currently, you will have to clear over $530 every month at a favorable rate of 4%- and a five-year deadline. The monthly payment does not include fees, tax, and premium insurance, which is often a requirement when taking out long-term loans and maintenance costs for the next five years.
Get Quality Used Cars at a Great Price
At AutoSwiftly, we provide our clients with quality used car vehicles at competitive prices. You can find the right car for you from us in just five easy steps. Apply online, choose vehicle type, we negotiate the deal, financing, and delivery. Contact us today to learn how to negotiate used car prices.
Recommended reading: How to Finance a Car Through a Bank or Dealership – Choosing the Best Option