> How to Negotiate a Used Car Sale
How to Negotiate a Used Car Sale
As it turns out, it's just as the old saying goes - knowledge is power.
This is especially true when you’re selling a car. To make sure you’re always negotiating from a position of strength, it’s important to arm yourself with as much information as you can. Selling your car can be a rewarding experience when you transform your knowledge into negotiating power.
Be prepared to haggle.
"You have to take all emotions out of it so you don't rush into something," says Keely Funkhouser, Autotrader.com Selling Adviser. "You can leave a lot of money on the table that you could have used to pay off your loan. There's always going to be another buyer, so don't undercut yourself."
Remember, your number one goal is to sell your vehicle for the best price that is fair to you and the buyer. Be objective and ready to explain why you priced the car the way you did.
Know the Value of Your Vehicle
There are lots of great tools to help. Autotrader.com's pricing tool shows you the average price for similar vehicles in your area. You can also check out NADAguides.com, Kelley Blue Book or Edmunds.com. If you haven't already determined your vehicle's value, read our pricing article to find out more.
When you know your car's real value, you’re less likely to be influenced by aggressive buyer negotiation tactics that try to whittle down the price by nitpicking at minor problems. Explaining that you've already factored those
"You have to stick to what your price is by sticking to the facts," says Tye Frazier, Autotrader.com Consumer Adviser. "Know all the small things about your car, especially if you want an extra $500 for it compared to other cars in your area--maybe your car has a warranty or has had only one owner."
Understand Local Supply and Demand
Conversely, if there are 10 other cars like yours and you see the same ads for them several weeks in a row, buyers have more options so this may affect how you negotiate. If you want to sell the vehicle quickly, you may have to stick to the lower end of your range.
Get Your Own Inspection
If the buyer’s mechanic identifies problems with your vehicle that you think are reasonable, reduce the price appropriately. However, never allow yourself to be intimidated by the buyer or his mechanic. If certain requests seem unreasonable, it may be best to walk away from the deal rather than proceed if you believe you’re being taken advantage of.
With the power of knowledge, the negotiating process can go smoothly, and the buyer and seller can walk away knowing they both got a good deal.
Nneka Logan is a freelance writer living in Atlanta.
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