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Negotiating the purchase of a used car can seem like a real challenge, but it’s also an opportunity to snag a great deal! Whether you’re looking to lower the purchase price or ensure the vehicle’s condition is perfect, a good negotiation strategy during private sales is key. In this guide, we share tips to help you negotiate like a pro, spot what to watch out for, and ensure you drive away with the best possible used car without breaking the bank.
Why buy a used vehicle rather than a new car?
Buying a used vehicle rather than a new car from a dealership offers several advantages, including a reduced cost. The average price range of a used car is generally much lower than that of new cars, allowing for significant savings on the prices of cars.
Here are some key benefits of buying a used car:
- Lower cost: Used vehicles are generally priced lower than new ones, offering potential buyers the chance to secure a fair price quote, avoiding the maximum price of brand-new cars.
- Avoid common dealer fees: Purchasing a used car helps you skip dealer add-ons like delivery or processing fees, common in new car deals, ensuring you secure a reasonable price.
- Vehicle history report: Access to a vehicle history report provides transparency, allowing buyers to make informed decisions about a car’s condition before finalizing the buying deal. It can also help boost negotiation efforts.
- Easier dealer negotiations: Used cars often have more room for negotiation, making it easier for buyers to secure a better price during dealer negotiations. This is the perfect time to demonstrate your bargaining skills.
11 tips for negotiating the price of a used vehicle with a private seller
When negotiating the price of a used vehicle with a private seller, understanding the biggest factors that affect cost can greatly impact the outcome of the car-buying process. From assessing the current vehicle’s condition and service records to discussing payment options, these 11 negotiating tips will help you get the lowest price and ensure a fair transaction with a private buyer.
1. Research the actual (current market) price of the used car
To negotiate the price of a used car, you must take the time to do your research! You can go to Kijiji or Facebook Marketplace and search for the make, model, and year of the vehicle you have in mind. If there are cars similar to the one you’re looking for, or better yet, the exact vehicle, this can give you an idea of the true value of the car you’re about to buy. This allows you to understand the average sale price of your preferred car, giving you a good estimate of how much you should be offering.
If the costs are too high, you could ask the seller why it’s so expensive; perhaps they haven’t done their research before setting the starting price. You can use this as a baseline for negotiation, lowering the price, or for the car to come with winter tires or a second set of rims. Then, if the vehicle is cheaper than the average retail price, still ask questions. Perhaps the car is damaged, has excessive mileage given its year, etc. Researching gives you negotiating leverage and the confidence that you are getting a fair deal.
2. Carefully examine the maintenance record and vehicle history
Checking the maintenance log is essential to understand the condition of a used vehicle, but requesting a Carfax report can provide even more details. Carfax offers complete history reports, including accidents, major repairs, ongoing recalls, and correct mileage, helping to assess the vehicle’s reliability.
These reports include information collected from dealers, repair shops, and public records, providing a complete view of the vehicle’s history for informed negotiations. This vehicle identification and background check ensures that you do not have to splash extra cash on the car later on due to historical issues with the car.
3. Conduct a thorough pre-purchase inspection
Before finalizing the purchase process, it is recommended to have the vehicle inspected by a professional from CarInspect. CarInspect offers comprehensive mechanical inspections performed by certified mechanics who assess the vehicle’s overall condition, detect necessary repairs, and identify signs of excessive wear. The service includes a detailed 170-point report, often delivered within 24 hours, which can be used as a powerful negotiation tool to justify a reduction in the purchase price in the event of defects found.
4. Use the vehicle’s condition as a negotiation tool
If the inspection reveals defects or certain parts are nearing the end of their life, use these points to negotiate. Items such as worn tires, damaged paint, or mechanical issues are opportunities to ask for a reduction in the purchase price. Effective negotiation relies on using this information to strengthen your arguments. You don’t need to have extensive knowledge of cars to feel confident. Simply use the information provided by CarInspect and Carfax as your own personal appraisal tool, and set what you think is a competitive price.
5. Request certificates and verify documentation
Make sure the seller has all the necessary documents, such as the current vehicle registration certificate and vehicle titles, outstanding liens, proof of sales tax, proof of insurance, transfer certificate, and repair history. This information is essential to verify the seller’s legitimacy and protect yourself from disputes throughout the entire process. Irregularities in the documents can also be used to negotiate a better price.
6. Inquire about previous owners
Knowing the previous driving record and the number of previous owners and how they maintained the vehicle can provide additional arguments. A vehicle with a wide range of owners in a short time may indicate recurring problems, giving you a better position in the negotiation process and potentially saving you from costly repairs further down the line.
7. Consider insurance and possible warranties
Some used cars may still be covered by a manufacturer’s warranty or an extended warranty, adding value to the vehicle. If no warranty is available, you can argue that it is a bad deal and use it as an argument to negotiate a price reduction due to potential risks.
8. Test the car before negotiating
Taking a test drive is essential to assess the comfort, handling, and performance of the vehicle on the road. Unusual noises, warning lights, imprecise steering, or questionable road handling are points to raise to justify a price reduction.
9. Be confident, but not too much!
A tip that could very well apply to life in general also applies to your negotiation skills. When negotiating a car, you must be confident. Use online tools to ensure you know the selling price and set a price that aligns with your personal finances. For example, suppose the owner tells you it’s selling for $9,500 and you want it at $9,000. You could start by offering $9,000. The seller might then reply by saying $9,300, no less.
Knowing that you could find a similar car for cheaper, you might respond by saying $9,200. For savings of “only” $100, the seller might think you’re being too pushy, and you could lose the sale. In short, negotiating is a challenging situation, and you should always be confident but always know the limit of the person you’re negotiating with. This can take practice!
10. Build trust
One of the most important things during negotiation is empathy. Show respect and tell the seller why and for what use you plan to buy their car. Simply discussing the vehicle with the seller, how they used it, and complimenting the car will set the stage for negotiation.
You can also mention that you’ve seen several ads similar to theirs, but that this car interests you more for specific reasons (price, appearance, color, etc.). If you don’t want to handle it yourself or don’t have the extra time to take on negotiations, our network of inspectors can take care of negotiating the vehicle you found and check that it’s in good condition.
11. Don’t be afraid to decline an offer
After a while when the negotiation leads to nothing, you should end it. Going back to the previous point, either you must accept the $9,300 offer or withdraw from the purchase. You can explain that you would love to buy the car, but the asking price exceeds your budget.
After making a counteroffer, sellers often tend to become firm. If you see that the seller no longer wants to negotiate and seems firm regarding the price, remember that there are plenty of other similar and cheaper models for sale waiting for their new owner!
- Top tip: We also warn you about ads that have been online for a while! If they are from three months ago, for example, it could put you in a good position to negotiate by mentioning that their car hasn’t sold. However, ask yourself why it hasn’t sold. An old listing can be a bad sign!
Pre-purchase inspection services in Canada
CarInspect‘s mobile inspection services offer many benefits for used car buyers. A thorough inspection is performed on-site by certified mechanics, ensuring an accurate and reliable vehicle assessment. This approach allows you to check every technical aspect of the vehicle, from the engine to the bodywork, providing excellent value for money. Additionally, the rigorous technical inspection helps identify potential defects before purchase, giving you the necessary negotiation arguments to make a good deal!
