How to Negotiate a Price and Buy a Used Car

Don't offer too little to start out, but don't take the seller's first offer either. Remember: You get what you pay for.

Difficulty: Easy

Instructions

Things You'll Need:

• Car loans
• Car insurance
• Kelley Blue Book
• Cars

1. Check the Kelley Blue Book value for the model and year of the car and compare it with the asking price. The Blue Book is a catalog of car values, available at most libraries, banks and online (see Resources).

2. Make a fair offer that fits your budget. Avoid a figure that greatly undervalues the car.

3. If the offer is not accepted, ask for a counteroffer. If it is too high, point out any problems you noticed about the car.

4. Make a second offer. This should be the counteroffer minus the cost of fixing any problems with the car.

5. Continue until you reach an agreement or a stalemate.

6. Pay with a money order or a cashier's check.

7. Ask the seller to sign the title to transfer ownership to you. Federal law requires the seller to provide you with two documents: the title certificate of the vehicle and an odometer statement showing the car's mileage. Certain states may require smog certificates and other forms. Call your department of motor vehicles to determine exactly what you'll need.

8. Note that in many states the seller is required to contact the motor vehicles department to inform it of the transfer of ownership. It's your responsibility to change the registration.

Tips & Warnings

• Try to pay a fair price but not be hard-nosed. It's sometimes a fine line.
• If the seller agrees to supply a warranty for the car (which is not required by federal law), make sure it is in writing.
• Offering cash often brings the price down. For example, you might say, "I can pay you $1,500 by check or give you $1,200 cash right now."
• Make sure any liens (financial claims) against the car, such as bank loans, are marked as "satisfied" before your purchase.
• If the seller agrees to supply a warranty for the car (which is not required by federal law), make sure it is in writing.

[omghow]

on 6/10/2009 Thanks for sharing.

[DTN5971]

on 10/28/2008 If you really want to save money when buying a car, I recommend you check out this website and buy the manual; it shows a lot of helpful tips and it actually was written by an insider of car financing business. My dad and I saved alot when we bought our car.
www.theautoloaninsider.com GOOD LUCK YOU GUYS!!!

[raif]

on 10/14/2008 Or you can hire Carsala to buy your car. Carsala will find the car you want and negotiate with the dealers on your behalf. Carsala customers have saved $5000 on average off Kelly Blue Book value of their cars. Check it out at http://www.carsala.com

[cardealer]

on 7/9/2008 FYI - offering cash does NOT lower the price. That is the last thing car dealers want. They make their money on financing and they want you to finance - not buy cash. I am a wholesale auto broker and am SICK of dealing with other dishonest car dealers. We just opened our cars up to the public. If you want to pay what dealers pay checkl out www.dxmotoring.com

[lemonproof]

on 2/8/2007 Hi, my name is Tadeo Sanchez, a class A technician, and I have recently set up a business that helps reduce the chances of purchasing a 'lemon'.

My business is called Lemon Proof and for more information check out my website: www.LemonProof.com

Be sure to also check out the my blog for some pictures on some of the nightmares my clients have been fortunate to avoid...enjoy!!

Cheers,

Tadeo Sanchez