Starting point for used car negotiations?

gusmahler · #1 12-21-2006, 03:11 PM

I know that, with respect to new cars, you should start negotiations based on invoice (though the dealers want you to start at retail.) But what about used cars?

I know you can go to Kelly Blue Book and obtain three prices for a car.

Let's take, as a hypothetical, a 2004 Mazda RX-8.

The Retail price is $22,970
The Private price is $20,370
The Trade in price is $17,875

If you're buying from a dealer, where do you start? And what's your goal?

Shoe · #2 12-22-2006, 12:47 AM

Disclosure: I have never bought a used car in my life.

However, I have bought new cars, and have never paid above invoice for one. I believe the used car equivlant of "invoice" to be the private party price, but I think you have a little more lead way with used cars, as the dealership has usually paid well below the trade in price on average.

I would look to negotiate something between the trade in price and the private price, as the retail price would be a straight up rip off for 99% of the cars out there.

tom10167 · #3 12-29-2006, 01:09 PM

KBB is completely worthless. I've spoken with a few people that own dealerships and depending how long the car has been there they're almost willing to give it away. I'd start at 50% off firm, and if they're not willing to do 30% less, walk away and call back in a few days and try again with 50% off.

Buying a used car from the dealership ... [img]/images/graemlins/frown.gif[/img] Private party's my personal choice.

Jimbo · #4 01-01-2007, 12:27 AM

[ QUOTE ]
KBB is completely worthless. I've spoken with a few people that own dealerships and depending how long the car has been there they're almost willing to give it away. I'd start at 50% off firm, and if they're not willing to do 30% less, walk away and call back in a few days and try again with 50% off.

[/ QUOTE ]

50% off? LMAO You haven't spoken to a "real" automobile dealer I promise you.

Jimbo

tom10167 · #5 01-01-2007, 05:07 AM

All right.

phiphika1453 · #6 01-03-2007, 05:02 AM

[ QUOTE ]
KBB is completely worthless. I've spoken with a few people that own dealerships and depending how long the car has been there they're almost willing to give it away. I'd start at 50% off firm, and if they're not willing to do 30% less, walk away and call back in a few days and try again with 50% off.

Buying a used car from the dealership ... [img]/images/graemlins/frown.gif[/img] Private party's my personal choice.

[/ QUOTE ]

LOL, you have no clue.

tom10167 · #7 01-03-2007, 05:39 AM

I concede.

Ray Zee · #8 01-04-2007, 03:21 AM

dont ever buy a used car from a dealer. it got there for a reason you probably wouldnt like. and they sell it for alot more than if you found one yourself in the paper. it just looks nicer as they prep them.

carguy · #9 01-04-2007, 04:45 AM

Uhh, yeah they wanted a new one.

So they went back to the Dealer that sold and serviced it. That's not exactly sinister.

'Chair · #10 01-05-2007, 01:50 PM

[ QUOTE ]
dont ever buy a used car from a dealer. it got there for a reason you probably wouldnt like. and they sell it for alot more than if you found one yourself in the paper. it just looks nicer as they prep them.

[/ QUOTE ]

I think that's some pretty good advice.

A lot of private sellers are selling privately because the dealership low-balled them on the trade-in value. So it makes sense that a good place to start negotiations with a private seller is with the Edmunds trade-in value or something just north of that figure.