One of the advantages of buying a used car is that it often allows the driver a little wiggle room in terms of negotiating. Drivers can attempt to haggle over a new vehicle, but most of the time those prices are dictated by the automaker. But when shopping used, buyers with some negotiating skills can often get themselves a great deal.
ABC News recently teamed up with Philip Reed, the senior consumer advice editor for Edmunds.com in order to learn some top negotiation strategies. The auto website buys quite a few cars for research and testing purposes, and Reed is usually the one doing the purchasing. Reed has also seen both sides of the negotiating table, even working as a car salesman as part of an undercover experiment.
The website was in the market for a used Honda Odyssey EXL from 2007. They gave Reed a budget of $25,000 and wishes for a low mileage, well-maintained vehicle with a sunroof for easier photographing. Reed allowed the news source to tag along as he went to several dealerships in an effort to snag the best price.
Many buyers assume that the negotiation process doesn't start until drivers are brought into an office and start going over paperwork. But according to the news source, the first number talked about is often the most important. A good salesman will try to get the buyer to name their price first. That way, they can work from there and hopefully raise the eventual price of the vehicle. But if the buyer gets the dealership to name the price first, they can work down from there.
A good strategy to compliment this is to use a pricing guide. A buyer should go in with a price in mind, but resist revealing it to the salesperson. It's easier to slowly work a salesperson down from their price than get them to stick to the buyer's.
Another tactic is to make sure to always leave the dealership. Even if it seems like a great deal, leaving the dealership and shopping some other car lots can't hurt. In fact, it can be beneficial to quote another dealer's price in order to get another to come down in price.
Using these and other tactics, Reed was able to negotiate the price of the used Honda down from $25,000 to $21,500 – a savings of $3,500. With a little research, drivers can do the same and get a great deal on a used car today.