When you buy a used car, you expect the price to factor in the value of the vehicle, any maintenance costs and other upfront fees. What you don’t expect is a salesman convincing you to buy an extended warranty or some other add-on that leads to an inflated cost. These common sales techniques are called dealer tactics, and they happen when car dealers know that customers have limited information about their options. Note however that these days, with the used car market being difficult, a good after-market used car warranty may still be a good idea, especially for certain makes/models that are prone to expensive repairs.
When you’re about to make a used car deal, keep these tips in mind so that you pay fair market value for your car. If you're buying a used car to save money on your daily commute we can help. Read on for our advice on how to spot a red flag when looking at used cars for sale, how to find a reputable dealership and how much budgeting and negotiating you should do before signing anything.
Know The Blue Book Value
The Blue Book value is an industry-standard value for a used car’s worth. It’s updated frequently and can be found online. You can also get a free price quote at websites like Kelley Blue Book. Or redbook.com.au.
The Blue Book value will give you a sense of what the car is worth. If the dealer tries to sell you a car for more than the Blue Book value, it’s either the car is exceptional for the age/model or it is overpriced. If you see this, walk away from the deal if you can’t negotiate a better price.
Take It To A Mechanic
If you’re buying a used car, you should definitely take it to a mechanic for a pre purchase inspection. Dealerships might have their own mechanics check it out, but they have a financial incentive to find the car in good condition. They might try to hide problems.
When you take your car to an independent mechanic, they won’t have any stake in the deal. This gives you a more objective opinion of the car’s condition. Remember that while a mechanic can tell you what is wrong with the car, they can’t tell you the cost of repairs. If you don’t have a ton of experience with car repairs, you might want to ask the mechanic to give you a few repair estimates for different scenarios.
Read The Fine Print
Before you sign any paperwork for a used car, read the fine print carefully. You may see a line item for extras like an extended warranty or paint protection. Dealers often bundle these extras into the cost of the car.
It’s not uncommon to pay several thousand dollars for extras that you might not need. If there are add-ons you don’t want, don’t be afraid to walk away from the deal.
Don’t Trust The Market Price
Some dealers will tell you that the asking price of the car is the market price. They might say that it’s what the car is worth. This is often not the case. If a car is listed at $15,000, it doesn’t mean that it’s worth $15,000. Instead, it’s an inflated price that the dealer hopes you will pay.
Negotiate The Selling Price First
Before you look at any other features of the car, start the negotiation with the selling price. The Blue Book value can help you start the conversation. While you have the Blue Book value in mind, remember that the dealer owns the car and has to make a profit.
If the dealer starts talking about the car’s condition, mileage or other features, they might try to lead you away from the price. Don’t fall for it. Keep the conversation focused on the price, and you’ll be more likely to end up with a fair deal.
Keep in mind that you don’t have to accept the first offer you get. You can negotiate with multiple dealers and see who will give you the best deal.
Don't Be Rushed
If you find a car that you like, don’t be pressured to make a decision. Dealerships want to turn over used cars quickly. They don’t want to make repairs on cars that sit in the lot. If there’s a car you like, take your time and look at other options. You can also visit the dealer at different times of the day to see how busy they are.
Unfortunately, many people rush into buying a used car without taking their time or even doing their own research first. This can lead to an expensive mistake, as some used cars have hidden problems that are only discovered through a pre purchase inspection by a professional mechanic.
A pre purchase inspection will allow the mechanic to look over the car and tell you if there are any issues that need to be addressed. You can have a mechanic look at the engine, transmission, brakes, and tyres, and make sure everything is in good condition. This way, you know what you’re getting into before you buy the car. And you can negotiate a better price if there are issues with the car that the owner doesn’t know about.
If you see a car that you like, don’t be afraid to walk away if you don’t like the price or you found a problem with the car. It’s better to leave without a deal than to settle for an unfair one.
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