How to Successfully Negotiate with a Used Car Salesman

I can't tell you how much I hate talking to used car salesmen (or women). I've had a lot of experience and am a bit wiser now, but when I was buying my first used car, I got totally taken. I ended up paying more than I wanted at a higher financing rate (APR) than I wanted. So, here's a few tips so that you don't fall into the same trap.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Time
• Patience

1. Before visiting a used car lot, do your homework and figure out what type (or types) of car you would be looking for. Also, check on various websites to figure out the used car values (Kelly values, etc.). Sites like Nadaguides.com, kbb.com, and carmax.com provide good information. Get a sense for what the car cost and how much you would be willing to pay. Also, make sure you've figure out a reasonable financing rate (APR) as well. You'll need to check with a bank or two to determine a good ARP. This way, if the salesguy tries to lay a slightly higher rate on your, you'll be able to quote a site where you found a lower rate.
2. When looking over each used car, try to spot any blemishes including underneath. Look underneath the hood to spot any problems. If you live in a cold climate, chances are there may be some wear and tear on the bottom due to the salt on the roads (salt used to melt the snow/ice). These will give you ammunition for any haggling you may have to do. Usually, if the price tag says somthing like 15,500, you might be able to negotiate to somewhere between 14,500 and 15,000. Use any of the blemishes as ammunition in your haggling.
3. If you are not an automotive wiz, I highly recommend that you bring a friend who is. This will help to prevent the salesguy from snowballing you and taking advantage of your ignorance.
4. Do not give any indications that you are in immediate need of a car. ALWAYS act as if you are just window shopping. This will give less ammunition to the salesguy.
5. If you decide to buy a car, and have haggled a little, give the salesguy a figure that you feel is reasonable based on your background work. If he disagrees, simply tell him "OK fine," and indicate to him that if he changes his mind, he should give you a call. Leave your number with him. If you've really given him a reasonable offer, it's more than likely he'll give you a call, especially if he doesn't have too many other prospective buyers.