How to negotiate the best price on a used car?

Looking for your next car but don’t know where to start? The most daunting part of buying a car is the price! But for many first-time car buyers how do you know what the best price is?

In many cases the price is the most important part of buying a car but without researching the market you could risk paying overs.

Shop for Cars has put together a few tips on how you can negotiate the best price on a used car.

1. Research

The biggest mistake many car buyers make is not researching. Often this can result in car buyers paying overs. Car buyers should spend time researching what vehicles are selling for, and how long it is taking for them to sell.

The number one tip is to not go off the advertised price. Many people overvalue cars online, so it is so important to understand the price of what vehicles are selling for. 

Apart from the price, car buyers should research the different models available on the market. Know what car you want and the intended use of the car. You should understand the fuel type, ongoing costs and service/registration costs. It is good to remember that larger cars have much greater on-going costs than smaller cars.

2. Get pre-approved

The second biggest mistake made by car buyers is starting to shop for a car and later realising that they do not have the borrowing capacity needed to make the purchase. This can be heart-breaking but is avoidable. Prior to beginning your search, you should consider applying for pre-approval.

Pre-approval is so beneficial as it gives you a complete understanding on how much you can borrow prior to undertaking your search. This also gives you an advantage when negotiating with a dealer as you can let them know your total budget. If it is under the advertised price, you could get some great discounts.

Car Finance

3. Determine what you want

Before you attend a dealership, know what type of car you want to buy. You should look into the specifications of the car, how you are going to use it and the maximum price you want to pay. There’s nothing worse then walking around dealership after dealership not knowing what you want.

4.Tell the dealer your cut off early

Tell the dealer right away your price cut-off. This avoids getting into a back and forth negotiation.

5. Shop around

The biggest tip for car buyers is to shop around. If a particular dealership isn’t giving you the deal you want, walk away and find another dealership. Competition continues to grow in the car sales industry and letting dealers know that you are walking away to the competition could entice them to give you a better deal.

6. Where to Shop

For Australian Car buyers there is an abundance of places where you can shop for used cars. There are many dealerships available and due to the high competition between sales yards, you could get some great deals and extra add ons.

If you don’t want to go down the dealership path there is also many online classifieds like Shop for Cars that allow you to search for vehicles online. 

Sell My Car

How to negotiate the best price online?

To put it simply, you can use the same tips mentioned above. As the online car sales includes private sellers, there will always be an abundance of choice. Individuals don’t carry the overheads dealerships do so they may be more willing to part with the car for a cheaper price depending on their individual circumstances.

Do your research online and see what other cars are selling for. Talk to the individual and find out what they can offer. Some buyers want quick sales, so it is always best to enquire.

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.