Used Car Deal: Negotiate a Good Price

Used Car Deal



This section of the used cars site is aimed at helping you to get the most of your trip to your local used car dealer. There are many things you have to look out for at a dealer and we want to help you. But we are not here to bash used cars dealers either, as they serve a very useful purpose, otherwise they wouldn't be in business. It is noticeable though that after restaurants, used car dealerships have the highest business failure rates of any business type.

And that is what you have to remember at all times, dealers are a business. Many people who run their own businesses get a little bit too sniffy when used car dealers try out things that they would be happy to do with their business, mainly because used car dealers have a rather bad reputation.

Some of that is down to people not understanding what their job is like. We look at what life is like when you work at a used cars dealership, so that you as a reader of this site can understand some of the pressures that the salesperson you are with are under.

We also look at the types of salespeople that you can meet on a used car lot. Sales is a skill that not so many people have, and some are better at it than others. Salespeople can take advantage of information asymmetry, what they know over what you know, so you should do your research to arm yourself with information such as sensible price ranges and your finance options before you go to a dealer. Dealers don't just sell cars, they also sell finance, warranties and service contracts. Make sure you know your way around these too so you don't lose on them what you gained on the car.

Ultimately, the best solution is to have a win-win situation after negotiation, where you get a good price on your car but the dealer can make enough of a profit that they have a viable business.

The only way to stay in business if they don't get enough deals where they make a profit is quite frankly to try and get as much profit as they can out of the people who are not so aware of what they do. So we have tried to point out what kinds of scams you need to look out for when you are at a used cars dealer. A lot of these were exposed by actual used cars salespeople who wanted to expose what was going on in their industry in order to eventually clean up their reputation. We help you spot a scam and make sure you don't get caught up in it.

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