Cars are expensive and, in certain parts of the country, an absolute necessity. And the modern used car market is an absolute jungle.
It’s easier to find used cars than ever before, but there’s also more competition among buyers than ever before as well.
This concise guide will focus on how to negotiate car price when paying cash. Haggling for a better price can be challenging and it may require some research on your part.
And if you happen to be a bit of an introvert, you may feel less confident in your ability to take a stand for yourself and look out for your own best interest. After all, negotiations aren’t the most relaxed social experience.
But when it’s successful, you stand to save hundreds or even thousands of dollars, relative to the original price.
And if you’re looking to negotiate via email, then this guide will be a big help.
Even if you don’t really know what you’re talking about when it comes to cars, you need to act like you do.
This will keep the seller on their toes, making them less likely to try to omit important information.
Or, even better, you could read up on the specific traits and qualities you should look for in a used car.
This usually involves checking the suspension, noting how worn the tires are, and taking the car for a test drive, during which you can test many different functions to make sure they’re working.
When you make an offer, don’t be shy. It’s also sometimes a good idea to start with an offer that’s lower than your actual budget.
For example, if the asking price is $2,500 and your budget is $2,200, you could start by offering $2,100. That way, if your negotiations creep toward the original asking price, it may still fall within your budget.
And if the negotiations are going nowhere, it might not be a bad idea to be honest about your budget. Be clear about how much you could possibly spend.
If the seller is desperate, they may match your desired price just to get the car off their hands.
Don’t Be Mean or Overly Aggressive
And while confidence can help prevent being taken advantage of, going too far in the other direction can also cause problems.
Acting mean or overly aggressive and intimidating while negotiating the price of a used car can make the seller like you a little bit less. They may decide not to offer the car to you at all, at any price.
It’s also just a dangerous way to go through social interaction of any kind. No matter who the seller is, they don’t deserve to be treated unfairly.
Pretend you’re speaking with a relative rather than a stranger.
Give Specific Reasons for Lowering the Price
So let’s say you make an offer that’s $300 below the original asking price. It shouldn’t be seen as low-balling, but it also represents a big loss from the perspective of the seller.
If you simply make the offer without giving any reasons for lowering the price, the seller will be less likely to accept it.
That’s why you should try to provide reasons that justify your offer.
Look for imperfection in the car, whether they’re purely cosmetic or represent a larger mechanical problem.
Chances are the seller was already aware of these imperfections, and was hoping you wouldn’t notice them.
Pointing them out to justify your offer may make the seller more likely to close the deal, or at least reduce the original asking price.
Reference Established Prices
Before meeting with a seller, you should try to find the exact model online and review websites that list common selling prices for that model and year.
The Kelley Blue Book site has a helpful calculator tool that can calculate the approximate fair market value of a particular car based on its year of manufacture, engine type, and even color.
Both professional salespeople and independent sellers will most likely already be familiar with Kelley Blue Book, and they’ll at least consider matching an established price.
You can also search for other sales of similar car models. That way, you’ll be able to present an established precedent.
It’s ultimately another way to leverage facts and information in your favor, hopefully encouraging the seller to let you have the car for a slightly lower price.
Keep Your Options Open
When buying a used car, it can be tempting to get attached to a specific car, especially if it ticks a lot of your boxes.
This is especially true for gearheads the world over, who may only be shopping for a car to secure a specific make, model, and year for themselves.
But even if you’ve found a car that seems absolutely perfect for you, you may just be unable to work out a price cut that puts the car within your pre-established budget.
Keep your options open. Anything could happen, and a seller may even decide at the last moment that they don’t want to sell the car at all.
When something like this happens, you’ll be understandably disappointed and perhaps even less motivated to go looking for different cars, now that the one you want is no longer available.
Try to keep yourself from becoming too attached to any used car. Don’t just settle on a specific model and hope to find that exact car sometime in the near future. Look for alternatives and ask others for their recommendations.
Cash is King
The fact that you’re paying with cash at all can work to your advantage when haggling for a lower price.
Keep this in mind when dealing with either a dealer or a private seller. You have the ability to pay the seller immediately, with no fuss over payment plans or clearing checks with your bank.
But it’s also to follow some simple safety measures when paying cash, especially when working out a deal in the private sellers’ market.
Always bring someone with you when negotiating a car price or paying for a car. Your friend or family member will also be able to give their opinions and even help you try to lower the price.