3 Tips for Negotiating When Purchasing a Used Car

When you need to purchase a used car, you want to make sure that you are able to purchase a car that fits your budget. In order to purchase a car that fits your budget, you need to understand the art of negotiating or haggling.

1. Ask About Rebates

Dealerships may advertise certain rebates, such as those offered via a manufacturer, to get people to their lots. However, many dealerships often have a host of rebates that they don't advertise. Many dealerships have unadvertised rebates that they will only offer you if you ask for them.

The great thing about rebates is that they don't cost the dealership anything; the rebate isn't coming from the dealership, it is coming from the company offering the rebate. At the same time, a rebate helps lower the cost you are paying for the vehicle.

For example, dealerships may be able to offer rebates to senior citizens, military personnel, college students, or even someone who is buying the same brand of car they previously owned.

Rebates are an often overlooked way to save on the cost of a new vehicle, so be sure to ask the dealership what type of rebates you may qualify for. Keep in mind that many rebates are not connected to a particular type of car.

2. Sell Your Old Vehicle Yourself

If you have a vehicle that you want to trade in, you may want to consider selling the vehicle yourself on the private market. Oftentimes, the amount you will get for a trade-in is far less than you will get on the private market. The price is lower because the dealership will have to clean up your vehicle and resell it, and they will need to make a profit. If your vehicle is really rundown, they will have to pay to have the vehicle recycled. Either way, dealerships generally offer you less than you can get on the private market because they are going to try to make a profit on your trade-in. If you have the time to meet with sellers, try selling your older vehicle yourself. This will give you more money to put towards a down payment, or more money you can apply to your car loan to pay it off at a faster rate.

3. Ask to Talk to a Manager

If you are ready to make a final deal and you want the deal done quickly, talk to the manager. The manager is the one who has final say-so on the price that the car is sold at. If you don't feel like you are getting anywhere with your salesperson, ask for the manager to come over and join the conversation. This can speed up and expedite the process.

When it is time to purchase a used vehicle, be sure to find out if there are any rebates the dealership can offer you. Sell your old vehicle on the private market and apply that money towards a down payment or towards your loan balance. When it comes time to close the deal, ask for the manager to join the conversation, as they will have final say-so on the price you pay for the vehicle. The manager may also have a little more flexibility to negotiate the price in order to hit their monthly sales quota.

Armed with these new tips, start looking for cars for sale today.