How Much Can You Negotiate on a Used Car in Australia?

Have you found a Used Car that you would like to buy but it is slightly outside of your price range? Don’t worry, there are things you can do.

One of the best things when it comes to buying a used car over a new car is there is room for negotiation. Depending on the sellers motivations, you may be able to negotiate a much lower price for the car than what is being advertised.

That brings us to the million-dollar question…

How much can you negotiate on a Used Car in Australia?

Well, that question has many different answers. The most logical answer to that question is it differs.

To understand how much you may be able to negotiate you need to learn about the seller, their motivations and demand. If a seller is under a strict timeline, you may be able to negotiate thousands off the advertised price.

On the flip side if a seller is not looking for an urgent sale, they may be reluctant to drop the price at all.

Demand will play a huge role in determining how much you can negotiate off the price of a car. If a car is in massive demand, the chances are you won’t be able to negotiate a whole lot off the advertised price. But on the opposite side of the spectrum, if a buyer is receiving little to no interest on their vehicle, they may be willing to drop several thousand off the selling price.

The last thing that you need to be aware of when it comes to negotiating the price of a used car is what type of seller you are looking to buy from. If you are looking to negotiate with a Dealership you need to understand that they carry overheads and are unable to drop prices as low as a private seller may. Private sellers generally carry no overheads other than potentially a remaining vehicle finance amount.

Research has found that there is two different negotiating price averages for used cars in Australia.

For dealerships it has found the average discount, if applied is under $2,500.

For private sellers the average discount has been found to be slightly higher at $2,900.

Please keep in mind that this is an industry average, negotiation price will differ based on each individual seller.

Shop for Cars has put together 5 tips to help prepare you for the negotiation process.

1. Understand the Cars Current Value

First things first, to position yourself to negotiate a cheaper price, you first need to understand the vehicles current market value. You can’t go into a negotiation unprepared, if you do, a seller will see straight past you and will send you on your way.

Find out what the industry standard pricing for the vehicle that you are interested in is. Once you understand that try to base your negotiation around that figure. A mistake that so many car buyers make is starting negotiations so far outside the vehicles value. Most sellers won’t proceed any further with negotiations with unrealistic buyers.

2. Don’t Show Emotion

This is arguably the most important tip. The key to negotiating a lower price on a Used Vehicle is not showing emotion. You love a car? Great, but don’t show the seller that. If they see how emotionally attached you are to the vehicle, they will be more reluctant to discount the price as they may know you will eventually give in.

It is important that you keep yourself centered and focused. The less emotion you show, the better!

3. Know Your Limits

When it comes to buying anything, it is important to know your limits, you never want to exceed your limits because it may put you in a difficult situation. Prior to beginning negotiations, it is important to know your spending limits. This could actually work in your favor.

If your spending limit is a thousand or so off the vehicles price, tell the seller that, it will effectively stop back and forth negotiations as you are unable to access or spend any more money. However, this could also work against you, if your limit is way too far off the vehicles price some sellers may turn you away. It is important that you tread carefully when it comes to expressing your spending limits.

4. Ask about Trade in Options

If you are thinking about buying your car from a dealership, a great way to negotiate a cheaper price is by trading in your current vehicle. Ask the dealer what they may take if you trade in your current vehicle.

Used Cars are in hot demand, dealers are literally fighting to get their hands on used cars to sell. If you show them that you are willing to trade in your vehicle with them, they may provide you with a better sales price just to get you to sell your current car to them.

5. Don’t Be Afraid to Walk Away

When it comes to negotiating the best price for a used vehicle, don’t ever be afraid to walk away. If the seller is unwilling to budge or negotiate, walk away. The best thing about used cars is there are always going to be options on the market.

Final Word,

The best thing about buying a used car is you have the ability to negotiate a better price. Whilst the average negotiation price will differ from seller to seller, there are ways you can increase discount potential. The 5 tips presented are a few ways you can prepare yourself for the negotiation process.

We hope you enjoyed reading this article. To read more articles like this, please visit the Shop for Cars latest news page here.

About Shop for Cars,

Shop for Cars is Australia’s first car dealership-only online classified. Shop for Cars brings you the best quality new and used vehicles from trusted motor dealers Australia wide. Shop for Cars currently has over 12,500 cars listed for sale all from licensed Motor Vehicle Dealers ONLY.

Click here to begin your search.

DISCLAIMER: This is all based on opinion please research and consult with all relevant parties to make the best buying decision.