- 1). Research all the prices. Used car values are determined by established guides such as Kelley Blue Book and Edmunds. There are numerous estimated values for a car, including dealer price, private party price and trade-in value. You can negotiate a better price by estimating what the dealer paid for the vehicle. Calculate what his profit would be by subtracting the trade-in value from the sticker price of the car. If the dealer is asking for a lot more than the private party price, make sure you are getting dealer premiums such as a limited warranty and a detailed engine inspection from the dealer mechanic.
- 2). Get a report on the car's history. Don't automatically trust the dealer when he tells you the car has a clean history. Get a CARFAX or AutoCheck report on the car. Verify that it hasn't been in any accidents or failed any smog inspections. If there are any problems on the report, use this to negotiate for a lower price or insist that the dealer fix the problems at his expense.
- 3). Insist you are ready to buy. A car salesman is always looking to close the deal. He doesn't want to waste time with someone who is just browsing the lot. Tell him you are ready to make a purchase and it is just a matter of price. If you will be getting an auto loan, pre-qualify yourself with a third-party lender so the dealer knows you have the money ready. If the dealer lowers the price a few hundred dollars, you know that there is probably more room to negotiate.
- 4). Find price-lowering flaws. Any used car is probably going to have some wear and tear. Inspect the car for anything that you can use as a reason why the price should be lower. These include high mileage, nicks on the paint, excess wear on the interior and missed servicing visits.
- 5). Take your time and wait for the best price. A dealer doesn't want to spend an hour with you only for you to walk away without making a purchase. Use this to your advantage. Occupy his attention so he can't be selling to anyone else. To find his rock-bottom price, leave the lot and wait for a phone call.
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