How To Negotiate a Used Car

When it's time to negotiate the price of a used car, you'll want to be as knowledgeable as possible. Doing your homework and researching car prices, consumer reports, CarFax reports and financing rates will give you an edge in negotiations. Always be prepared to walk away from the car if the negotiation does not go in your favor.

1. Select the type of car you want before walking into a dealership. Knowing the make, model and year of the car in advance allows you to gather the information you'll need to carry on a successful negotiation.


2. Look up the Kelley Blue Book value of the car. You'll want to have an idea of the approximate price range of the car before walking into a deal. While this price range is to be used only as a general guide, it can prevent you from paying an exorbitant amount for a used car.


3. Read consumer reports. If the type of car you have selected is prone to particular weaknesses, knowing this information will assist you during the used car negotiation.


4. Pull a CarFax report. Find out information about the specific car of interest. Details such as whether the car was used by a rental company, driven in a flood zone or involved in a car accident will give you leverage during negotiations.


5. Limit the amount of information you give the seller. Whether dealing with a car dealership or a private seller, avoid answering extensive questions about your price range and financing options. Let the seller do more of the talking about pricing and options.


6. Be direct about your expectations. Car dealerships generally need to make a certain percentage above the amount they paid for the car. Explain that you understand their need to make a profit and that you want to make a deal that allows them to do so while staying within a price range that is acceptable and affordable to you.


7. Avoid becoming attached to the car. Prepare yourself for walking away. Tell yourself that a better deal can be found elsewhere. An overly eager demeanor may prevent you from negotiating the best price possible for a used car.