It's a fair bet that sooner or later you'll find yourself car shopping. Choosing a used car over a new car can save you thousands of dollars, but not all used car dealerships are honest. Some used car dealerships mark up vehicles beyond their actual value while car salespeople use psychological tricks to make shoppers more apt to spend beyond their budgets. By educating yourself on the used car shopping process before you visit the lot, you're more likely to get a good price on a used car.
1 Look up the market value for the make and model of used car you want to buy. You can find retail estimates for used cars through Edmunds.com's "True Market Value" estimate or researching the vehicle in question at the Kelley Blue Book's website, kbb.com.
2 Secure financing before you go car shopping. Although many car dealerships offer financing options, financing at the dealership is only a wise choice if the dealership offers you a lower interest rate than your bank. In addition to offering notoriously high interest rates, car dealerships have been known to sneak additional services and items buyers did not request into financing contracts.
3 Shop for your car at the end of the month. The sales teams at used car dealerships have monthly quotas to meet, and you're more likely to get a better price in the last days of the month when the sales manager is pushing for additional sales.
4 Mention to the car salesperson that you aren't in a hurry and need an opportunity to compare the price he quotes you with the price at other dealerships. Even if you need the car immediately, letting the salesperson know this makes him less likely to offer you a good deal because he knows your options are limited.
5 Make a lower offer than what the dealership quotes you. Remember, the price sticker on the car is only a starting point for negotiations. The price isn't set in stone. Continue to make a lower offer until you reach a compromise with the dealership.
6 Walk away if you can't reach an acceptable price with the dealership. The last thing a car salesperson wants is to see you buy a car from the competition, and she might acquiesce to your offer if you get up and walk away. If not, visit other dealerships until you find a car you want that fits your budget.
7 Scrutinize your final contract for junk fees. Like a real estate contract, a used car sale contract often contains fees such as a "dealer convenience fee" or "advertising fee." These are fees for nonexistent services or services the dealership must perform regardless of whether you actually buy the car. If a car dealer informs you the fees aren't negotiable, walk away. Most dealerships won't risk losing a sale on account of junk fees.
