My wife and I are in the process of purchasing a used car:

What is the best way to go about this?

We have a very set budget and do not want to take out another loan, so we will be paying cash.

When at a dealer is it best to state a lower price than we are willing to spend to hopefully end up at the price we want?

I.E. say we want to spend $10,000 and offer $8,500 would most dealerships not want to deal with us?

I'm just looking for some guidance or suggestions- we are willing to play the waiting game to get something we want- but at the same time she is struggling in the North Carolina heat without AC!

Thanks for any suggestions...Greatly appreciate it!

If you're paying cash you should be able to get a pretty good deal.

Say you look at a $10,000 vehicle like you said. I'd offer $7500 cash. If they don't take it, tell them you'll go to another dealership.

Tell the guy at the dealership what your bottom line is. Tell them you will not negotiate and that you will spend your money somewhere. If they don't understand that find somewhere that will.

Have some ammo going in. Average values you can find online. Don't try to steal a car off the lot. Be reasonable and find a dealer who is willing to do the same.

Be confident and willing to walk away from any deal you can't live with and tell them up front you will not play games. They will respect you for not wasting their time and you will end up with a good deal.

I go with a friend of mine to dealer auctions quite often. They sell at or around trade in value. This is something you can look up on a certian vehicle and make a cash offer. Keep in mind they do have some expense in transportation, detailing and maybe service. Most do not service the auto (oil change etc...) Hope this helps.
Good luck.

DO NOT GIVE DEALERS A "PRICE"...

Look around and ask prices on certain vehicles that you know is in your range. If you give them a "budget" to work with, they may show you some vehicles that look the part, but aren't worth it if you know what I mean.

Stand your ground, you're not there to make them happy, you're the customer and you have the ability to take your $$$ elsewhere, remind them of that.

I just got a '06 Fusion SE with low mileage for 11 grand. Asking price was 13,750.

Try to find ANY small scratches or faults with the car and bring it up in conversation. Every minor detail can help you barter the price lower.

Not only did I get the 2,750 off, but I also ended up getting a year 50/50 warranty thrown on to it as well, which is very nice.. Of course, my deal came from a legit Ford dealer and I don't know if you're messing with an actual name dealership or some corner used car lot...

You should never reveal your reservation point in any bargaining situation.

wubdg;449950 wrote:What is the best way to go about this?

Become informed. Use NADA (not KBB) to find a base line value for retail and trade in values of the car you want. You should be able to purchase an auto privately slightly above the trade in value and from a dealer just above about midway between the two prices. I.E. Retail $10,000, Trade in $7,000. Private $7,500, Dealer $8,700. Good luck.

Learn about the general price for the vehicle you want. Find similar vehicles with similar mileage at a number of area dealerships. E-mail or call to find out price and let them know that you're interested. Use the advice above to figure out the dealer's likely reservation price--the price below which they are not willing to sell the car. Then do the same for yourself--figure out the most you'd be willing to pay, and keep in mind your best alternative to a negotiated agreement (i.e., what are you going to do if there is no overlap between their reservation price and your reservation price).

Usually, the prices will overlap. The money in the middle is up for grabs, and it's up to you to win as much of it as you can.

Despite what was said previously, you absolutely should make the first offer. It's a common negotiating ploy known as "anchoring." As long as you've done your research and know what to offer, by throwing out the first offer you set the stage for the negotiation. Set it on the low end of reasonable. If you offer too low, it can be insulting, and the dealer will either cut you off or re-anchor at a much higher price. But if your price is in the zone of reasonableness, it sets the stage for the negotiating.

If the dealer tells you, "this is my lowest offer, and I can't do any better," two things you can do: (1) either reveal your reservation point and say, "this is my highest offer, and I can't do any better." Put the ball in their court. Or, (2) negotiate non-price details (extended warranty, additional features, dealer pays tax or transfer fees, something like that). You can pick up additional value other than on the price of the car.

Good luck!

My family owed a used car lot for over 30 years. I will give you the dealers point of view. The way your going to get the best deal is going to be to tell them straight up that you are going to pay cash and you are going to buy today if you find something there. You should also go at the end of the month when dealers are trying to get their books as high as they can before they close them for the month. (Maybe 2 or 3 days before the end of the month is best). If you know your budget ie. 8,000$ look at cars priced at around 8-10.5k. Just because a car is higher priced doesn't mean it a better car for you. Make sure you find something you are comfortable driving and has the features you need. Take the car on a test drive make sure to drive in on city street and on the interstate. Differing Speeds might show different problems. When you sit down maybe offer 7200 cash out the door and see what they counter with. If they counter with something higher then your budget then just straight up tell them 8000$ is the most I can go and this is really the only car your interested in. If they say no move on theres plenty of dealerships out there.

Thanks for all the suggestions!

Go in around the middle of the month and wait until the end of the month to purchase. Often times, the salespeople has monthly goals, and if they are a sale or two away, they will cut the price dramatically to meet their goals.

When I was car shopping, dude would call me every few days, and I kept telling him I was still shopping. He kept coming down, threw in some Blue Jackets tickets and I kept saying I was still shopping. Day before last day of the month he called and basically told me he had to sell one more car to meet his monthly goal and came way down on asking price.

fan_from_texas;450181 wrote:Learn about the general price for the vehicle you want. Find similar vehicles with similar mileage at a number of area dealerships. E-mail or call to find out price and let them know that you're interested. Use the advice above to figure out the dealer's likely reservation price--the price below which they are not willing to sell the car. Then do the same for yourself--figure out the most you'd be willing to pay, and keep in mind your best alternative to a negotiated agreement (i.e., what are you going to do if there is no overlap between their reservation price and your reservation price).

Usually, the prices will overlap. The money in the middle is up for grabs, and it's up to you to win as much of it as you can.

Despite what was said previously, you absolutely should make the first offer. It's a common negotiating ploy known as "anchoring." As long as you've done your research and know what to offer, by throwing out the first offer you set the stage for the negotiation. Set it on the low end of reasonable. If you offer too low, it can be insulting, and the dealer will either cut you off or re-anchor at a much higher price. But if your price is in the zone of reasonableness, it sets the stage for the negotiating.

If the dealer tells you, "this is my lowest offer, and I can't do any better," two things you can do: (1) either reveal your reservation point and say, "this is my highest offer, and I can't do any better." Put the ball in their court. Or, (2) negotiate non-price details (extended warranty, additional features, dealer pays tax or transfer fees, something like that). You can pick up additional value other than on the price of the car.

Good luck!

Did you go to Northwestern?

FFT's advice is good. If you can't budge on price, and he also refuses to, before you quit the negotiation try to make the "pie" bigger. Add ons, warranties, floor mats, etc. Don't just think of it as a price battle.

TBone14;450406 wrote:Did you go to Northwestern?

I did my undergrad at Rice, but went to law school at Northwestern.

if you go in the middle of the month and get quoted a price on a car they are very unlikly to go much lower then the quoted price at the end of the month because they figure you were interested enough to come back after shopping around ( they figure youve looked around int hose two weeks and this is your best option.) This is just what the dealer thinks. Just because a salesperson needs to make a quota doesnt mean he has the power to lower the price there is usually a set amount they can go it just reducing inventory at the end of the month might make that price less.

fan_from_texas;450555 wrote:I did my undergrad at Rice, but went to law school at Northwestern.

Your post sounded similar to some of the research done by Leigh Thompson, who I have studied and read while doing Conflict Management and Negotiation research. I know she teaches at Northwestern, I didn't know if you had the opportunity to have her in any classes. Her book, The Mind and Heart of the Negotiator, is an absolute must read for everyone, even if you don't think you negotiate very often, you do.

TBone14;450753 wrote:Your post sounded similar to some of the research done by Leigh Thompson, who I have studied and read while doing Conflict Management and Negotiation research. I know she teaches at Northwestern, I didn't know if you had the opportunity to have her in any classes. Her book, The Mind and Heart of the Negotiator, is an absolute must read for everyone, even if you don't think you negotiate very often, you do.

The law school is in Chicago, while the undergrad is in Evanston, so I didn't get a chance to take any classes with her. We did study her book, though, and the research is pretty sound. That, along with "Getting to Yes," are two great books for everyone.