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Haggling down on a used car in CA.

Haggling down on a used car in CA.

Old Aug 19th 2012, 1:06 pm
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Default Haggling down on a used car in CA.

Hi guys,

How much would you expect to haggle down on the window price on a used car from a dealer or a private seller? 5%? 20%? Do you need to site issues with the car (tyres, undisclosed trim damage) to get a discount?

Thanks all
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Old Aug 19th 2012, 2:05 pm
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Default Re: Haggling down on a used car in CA.

Originally Posted by joylove View Post
How much would you expect to haggle down on the window price on a used car from a dealer or a private seller? 5%? 20%? Do you need to site issues with the car (tyres, undisclosed trim damage) to get a discount?
First, I'd check with Kelley Blue Book (kbb.com) and go from there. In the end, if you feel you're getting a fair price for the car, go with it.

Ian
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Old Aug 19th 2012, 3:00 pm
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Default Re: Haggling down on a used car in CA.

Originally Posted by joylove View Post
Hi guys,

How much would you expect to haggle down on the window price on a used car from a dealer or a private seller? 5%? 20%? Do you need to site issues with the car (tyres, undisclosed trim damage) to get a discount?

Thanks all
Offer what you feel the car is worth to you. If that's 20% less than they're asking they'll either laugh at you or come back with a counter. If they come back with a counter then you know you are close. If they laugh, you are far away.

You could get it checked out by a mechanic. That way you'll know if the vehicle needs any work.

Use CarFax: http://www.carfax.com/entry.cfx
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Old Aug 19th 2012, 3:04 pm
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Default Re: Haggling down on a used car in CA.

You don't need to give any reasons. Figure out what you want to pay and then tell them that's what you want to pay. If they don't go for it, walk away. If you don't want to walk away then your original value wasn't what you really thought was a fair price. Always be prepared to walk away but leave your contact details and let them know that you will still be interested at that price. There is a good chance that at the end of the month when they need sales you'll get a call agreeing to the price.
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Old Aug 19th 2012, 4:30 pm
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Default Re: Haggling down on a used car in CA.

Originally Posted by Duncan Roberts View Post
You don't need to give any reasons. Figure out what you want to pay and then tell them that's what you want to pay. If they don't go for it, walk away. If you don't want to walk away then your original value wasn't what you really thought was a fair price. Always be prepared to walk away but leave your contact details and let them know that you will still be interested at that price. There is a good chance that at the end of the month when they need sales you'll get a call agreeing to the price.
+1.

In addition to KBB, check Edmunds and NADA as well. IME, if you can't come to a price agreement within a few minutes, walk away. It's just not worth getting bogged down into an extended discussion. And to help you, be aware that they may not be willing to sell for a fair price. You can use google to get into the details, but the bottom line is that you work out a fair price from your end with a little research, and either they are truly willing to deal with you on a given day, or they are not.
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Old Aug 19th 2012, 6:43 pm
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Default Re: Haggling down on a used car in CA.

And don't get bogged down by the silly games of the monthly payment options that they rather talk about than total price...helps if you've got your own finance or cash options, but don't let on till you've agreed a price because they get good commission from their own finance so that's why they're sometime willing to drop the original price to look better about the deal.
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Old Aug 20th 2012, 3:56 am
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Default Re: Haggling down on a used car in CA.

KBB and/or Edmunds give you the "invoice" price, at which the dealer allegedly gets the car from the manufacturer. That is usually about the lowest you can go (the dealer gets other kickbacks, it's not really the dealer's cost).
But also check for rebates on offer from mfr (also online sites give this).

This time of year and next couple of months are good for bigger discounts on 'last year's model', as dealers are now clearing out showrooms for 2013 model cars. If you are not so fussy with colors and trim, you can get a great deal on the last few cars they need to clear out.

now I see you mentioned used cars... oh well!
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Old Aug 20th 2012, 5:19 am
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Default Re: Haggling down on a used car in CA.

I didnt know anything about buying a used car before I got my first one, so I did a lot of research. I used to be a sticker price kind of guy. Anyways here are some tips I learned. Bought a $21,000 car for $16,800 which isn't bad considering how bad I was at haggling.
  1. Buy at the end of the month, last 3 or 4 days. They have quotas they need to hit and are more likely to give you a better deal
  2. Do your research first! Find two or three cars that you're happy with and find the exact options you want on it.
  3. Buy a month long unlimited subscription to carfax and print out as many reports as you can.
  4. Find a few reputable mechanic near the car shop. When you're close to buying, tell them you want to have it looked over by a mechanic. When he reccomends one, make sure you dont go to that one. Should only cost $10-$20. I learned SO much about my car as he described every little issue that might come up in the future.
  5. Don't show immediate interest in the car you are favoring. Look at 3 or 4 cars. Dont let the salesman/woman get you excited. The more you show you want it, the more they know youre less likely to walk away without it.
  6. Do an official credit report and print it out. Take it to a few banks and secure a loan and ask them what kind of rates that score will get you BEFORE they run your credit. This will keep the hits down to only one and your score wont suffer from shopping around. Have the loan secured before you purchase.
  7. Verify that you are getting OUT THE DOOR PRICE. They will tack on all sorts of extra fees otherwise.
  8. When you get in the car, test EVERY little thing inside. Every seatbelt, every button, the cd player, the lighter, the headlights, turninglights, hazzards, wipers, even the wiper fluid. I thought I tested them all only to find out there was a kink in the windshield wiper hose.
  9. Inspect the paint closely. Look for recent touchups.
  10. Something I did which may have helped. I printed out carfax reports and listings for 15 different cars at multiple dealerships. I numbered them with a sharpie noticeably at the top. My top car was at like #9 or something and when I went to ask him questions about it, i flipped though and pulled that out of my binder. Giving the impression I had a bunch of cars to check out.
  11. If there were any accidents on the car, dont let him know that you have a carfax yet. Ask him if there were any. If he lies, call him out on it and use that as leverage. Otherwise you can get a more detailed history on the accident.
  12. If you are using a tradein, try and settle on a price before you mention that you have a tradein
  13. Use the bluebook to determing the exact price that car should be at before you go in. You'll know better if youre getting a good deal, you're being screwed, or if youre being unreasonable with the guy.
  14. Sometimes if the guy wont budge any lower on the price, you can convince him to throw in brand new tires

See if some of these tips I learned help at all. Again I'm by no means an expert, so if someone knows better, jump in.
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Old Aug 20th 2012, 7:14 am
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Default Re: Haggling down on a used car in CA.

Wow, some great responses. I will try to reply to you all.
Originally Posted by ian-mstm View Post
First, I'd check with Kelley Blue Book (kbb.com) and go from there. In the end, if you feel you're getting a fair price for the car, go with it.

Ian
Good idea, I hadn't thought of going as simple as that for the negotiation. Thanks.

Originally Posted by markwm View Post
Offer what you feel the car is worth to you. If that's 20% less than they're asking they'll either laugh at you or come back with a counter. If they come back with a counter then you know you are close. If they laugh, you are far away.

You could get it checked out by a mechanic. That way you'll know if the vehicle needs any work.

Use CarFax: http://www.carfax.com/entry.cfx
Gotcha thank you.

Originally Posted by Duncan Roberts View Post
You don't need to give any reasons. Figure out what you want to pay and then tell them that's what you want to pay. If they don't go for it, walk away. If you don't want to walk away then your original value wasn't what you really thought was a fair price. Always be prepared to walk away but leave your contact details and let them know that you will still be interested at that price. There is a good chance that at the end of the month when they need sales you'll get a call agreeing to the price.
Good tips on leaving the contact details, thanks.

Originally Posted by AdobePinon View Post
+1.

In addition to KBB, check Edmunds and NADA as well. IME, if you can't come to a price agreement within a few minutes, walk away. It's just not worth getting bogged down into an extended discussion. And to help you, be aware that they may not be willing to sell for a fair price. You can use google to get into the details, but the bottom line is that you work out a fair price from your end with a little research, and either they are truly willing to deal with you on a given day, or they are not.
Cool thank you, I've always bought private, so learning to leave is something new. I think that will save me a lot of hot air and time.

Originally Posted by Bob View Post
And don't get bogged down by the silly games of the monthly payment options that they rather talk about than total price...helps if you've got your own finance or cash options, but don't let on till you've agreed a price because they get good commission from their own finance so that's why they're sometime willing to drop the original price to look better about the deal.
Yep I should have mentioned will be paying cash I think (unless the loan helps boost my credit score and is at a reasonable rate) so I will remember this thanks.

Originally Posted by davidtheprof View Post
KBB and/or Edmunds give you the "invoice" price, at which the dealer allegedly gets the car from the manufacturer. That is usually about the lowest you can go (the dealer gets other kickbacks, it's not really the dealer's cost).
But also check for rebates on offer from mfr (also online sites give this).

This time of year and next couple of months are good for bigger discounts on 'last year's model', as dealers are now clearing out showrooms for 2013 model cars. If you are not so fussy with colors and trim, you can get a great deal on the last few cars they need to clear out.

now I see you mentioned used cars... oh well!
Lol, well that still may be useful one day, thanks.

Originally Posted by Insomniac View Post
I didnt know anything about buying a used car before I got my first one, so I did a lot of research. I used to be a sticker price kind of guy. Anyways here are some tips I learned. Bought a $21,000 car for $16,800 which isn't bad considering how bad I was at haggling.
  1. Buy at the end of the month, last 3 or 4 days. They have quotas they need to hit and are more likely to give you a better deal
  2. Do your research first! Find two or three cars that you're happy with and find the exact options you want on it.
  3. Buy a month long unlimited subscription to carfax and print out as many reports as you can.
  4. Find a few reputable mechanic near the car shop. When you're close to buying, tell them you want to have it looked over by a mechanic. When he reccomends one, make sure you dont go to that one. Should only cost $10-$20. I learned SO much about my car as he described every little issue that might come up in the future.
  5. Don't show immediate interest in the car you are favoring. Look at 3 or 4 cars. Dont let the salesman/woman get you excited. The more you show you want it, the more they know youre less likely to walk away without it.
  6. Do an official credit report and print it out. Take it to a few banks and secure a loan and ask them what kind of rates that score will get you BEFORE they run your credit. This will keep the hits down to only one and your score wont suffer from shopping around. Have the loan secured before you purchase.
  7. Verify that you are getting OUT THE DOOR PRICE. They will tack on all sorts of extra fees otherwise.
  8. When you get in the car, test EVERY little thing inside. Every seatbelt, every button, the cd player, the lighter, the headlights, turninglights, hazzards, wipers, even the wiper fluid. I thought I tested them all only to find out there was a kink in the windshield wiper hose.
  9. Inspect the paint closely. Look for recent touchups.
  10. Something I did which may have helped. I printed out carfax reports and listings for 15 different cars at multiple dealerships. I numbered them with a sharpie noticeably at the top. My top car was at like #9 or something and when I went to ask him questions about it, i flipped though and pulled that out of my binder. Giving the impression I had a bunch of cars to check out.
  11. If there were any accidents on the car, dont let him know that you have a carfax yet. Ask him if there were any. If he lies, call him out on it and use that as leverage. Otherwise you can get a more detailed history on the accident.
  12. If you are using a tradein, try and settle on a price before you mention that you have a tradein
  13. Use the bluebook to determing the exact price that car should be at before you go in. You'll know better if youre getting a good deal, you're being screwed, or if youre being unreasonable with the guy.
  14. Sometimes if the guy wont budge any lower on the price, you can convince him to throw in brand new tires

See if some of these tips I learned help at all. Again I'm by no means an expert, so if someone knows better, jump in.
Brilliant thanks. The tips on the OOTD price, credit report and the folder are especially excellent.

Can I ask, did the price you paid for your vehicle come in below the KBB value? Are they interested in values much below KBB?

Also, when you took it to the mechanic, is that because you didn't know cars or because you want the underside of the vehicle and the emissions inspected?

And when you went to the mechanic, do they just give you the keys and wave you off with a cheery smile or do you need to arrange a deposit and insurance?
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Old Aug 20th 2012, 10:21 am
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Default Re: Haggling down on a used car in CA.

Originally Posted by joylove View Post
Can I ask, did the price you paid for your vehicle come in below the KBB value? Are they interested in values much below KBB?
The bluebook price for the car I was getting was a hair under $21,000. That was with the proper mileage and condition entered. It was a 2007 Dodge Charger R/T AWD purchased in 2009 with 17,000 miles on it. I had to look all over the net to find it and ended up driving 3 hours away to get it, as there are not many AWD versions of that car(im in the snow). The dealership wanted $18,500 for it and thats not counting out the door fees, and as I said I was able to get him down to $16,800. Basically look at what they are selling it for, then look at the bluebook. In my case, I knew they weren't going to be making much money off that car as it was, so I wasn't expecting to be able to haggle him down too far.

Originally Posted by joylove View Post
Also, when you took it to the mechanic, is that because you didn't know cars or because you want the underside of the vehicle and the emissions inspected?

And when you went to the mechanic, do they just give you the keys and wave you off with a cheery smile or do you need to arrange a deposit and insurance?
I dont know cars too well(I know enough to get by), but I brought my father along who knows them very well. Still, it's not like we had a pocket lift with us. The mechanic charged us $10 dollars and went over it with a fine-toothed comb. He showed us that the paint job looked like it had been fixed and wasn't high quality. He showed us exactly how the accident the car had had, happened by pointing out very small changes in paint I would not have noticed. He pointed out a few spots that I should keep an eye on in the future to maintain.
The place I went to though, I just told them I wanted to take it somewhere to check before I bought it. They were fine with it, I think I may have given them my credit card or they ran it beforehand. I was given a temporary plate and told them I'd be back in half an hour. But yah, It gave me a lot of peace of mind having the mechanic go over it. My father is an engineer and his father worked at the Ford plant. So they know cars pretty well...but even he said he never would have spotted most of the stuff the mechanic pointed out.

Also I found this too if you want to try it. Seemed interesting but never have tried it.

http://www.wimp.com/buycar/

Last edited by Insomniac; Aug 20th 2012 at 10:25 am.
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Old Aug 20th 2012, 12:39 pm
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Default Re: Haggling down on a used car in CA.

Originally Posted by Insomniac View Post
Do an official credit report and print it out. Take it to a few banks and secure a loan and ask them what kind of rates that score will get you BEFORE they run your credit. This will keep the hits down to only one and your score wont suffer from shopping around. Have the loan secured before you purchase.
If you get a bunch of quotes within a week, they'll all come as soft hits and won't affect your score over the first hit....but it's a good idea to get financing sorted first though
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Old Aug 20th 2012, 12:41 pm
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Default Re: Haggling down on a used car in CA.

Originally Posted by joylove View Post

Yep I should have mentioned will be paying cash I think (unless the loan helps boost my credit score and is at a reasonable rate) so I will remember this thanks.
Getting a car loan is a great way to build up your credit history and varied history other than just a credit card so well worth it. If you want to pay cash, get loan for the car, pay most of it off and leave $1K on it and pay that off over a year to make it count and should have minimal to no real cost to you, as long as the loan doesn't have a early pay off clause.
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Old Aug 20th 2012, 12:45 pm
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Default Re: Haggling down on a used car in CA.

Originally Posted by Bob View Post
Getting a car loan is a great way to build up your credit history and varied history other than just a credit card so well worth it. If you want to pay cash, get loan for the car, pay most of it off and leave $1K on it and pay that off over a year to make it count and should have minimal to no real cost to you, as long as the loan doesn't have a early pay off clause.
They give you better deals too if you finance as they make more money off of it. If you HAVE to use cash, make sure it's less than $10,000 as there is some sort of tax put on that.
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Old Aug 20th 2012, 3:02 pm
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Default Re: Haggling down on a used car in CA.

Don't forget that - however much you might want to - punching a car salesman in the face is illegal in some states. Hadn't seen this one mentioned but it's worth bearing in mind.
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Old Aug 20th 2012, 3:16 pm
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Default Re: Haggling down on a used car in CA.

Originally Posted by Bob View Post
Getting a car loan is a great way to build up your credit history and varied history other than just a credit card so well worth it. If you want to pay cash, get loan for the car, pay most of it off and leave $1K on it and pay that off over a year to make it count and should have minimal to no real cost to you, as long as the loan doesn't have a early pay off clause.
As long as it's somewhere that reports such things... the smaller places seem to self-finance (not bank-backed) so don't have the ability to report loans to the agencies.

Originally Posted by tonrob View Post
Don't forget that - however much you might want to - punching a car salesman in the face is illegal in some states. Hadn't seen this one mentioned but it's worth bearing in mind.
Just the face?
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