Negotiating A Used Car Price Effectively

The choice of car is up to you, but by engaging systematic negotiation, you can make the purchasing process effortless. The negotiation process consists of three steps:  investigation, determining your BATNA (best alternative to a negotiated agreement) and bargaining. Do your homework about what you want to purchase and make up your mind. Have a price range in your mind for that particular vehicle. Find out the best alternatives which will match your expectations. This way you are ready for rejections, as you have other choices. Negotiate the price confidently to bring it within your desired range. . While bargaining, keep in mind that several factors can influence the fair pricing of a used vehicle, so plan accordingly.

There isn't a specific amount for negotiating on a used car.  There are a lot of factors that influence the price of a vehicle. For instance -  how much distance the vehicle has covered since its manufacturing, the average selling prices of similar vehicles, whether scheduled maintenance has been carried out, the inclusion of winter tires, and many more.. While these factors might appear insignificant, they can be game changers. When negotiating the price, consider these factors and establish a price range.

Negotiation Tips:

To get a great car at the best price, it is important that you know its market value.  Locate similar vehicles available for sale in your area to make an informed decision.  There are tools like CARFAX Canada’s Value Range tool can assist you in determining the value of your chosen vehicle.

Obtain the car's VIN (Vehicle Identification Number) from the seller so that you can run a CARFAX Canada Vehicle History Report. This report provides essential information about the vehicle accident history, odometer readings, outstanding loans, and the service history of the vehicle. Moreover, you'll gain insights into its registration and branding history. This information will give you an edge in choosing the right car for yourself.

Several other interior factors influence the car’s price such as interior damage, number of previous owners, winter tires inclusion, the color  of the vehicle, fuel type/battery used, year of manufacture, extended warranties, after-market features, and recent replacement of important components like brakes. Evaluate these factors and utilize them wisely to your advantage when negotiating the car's price.

You cannot perform a comprehensive inspection of the vehicle on your own unless you are a mechanic.  Seek a professional mechanic to thoroughly inspect the vehicle. If the vehicle has been involved in an accident before, it is recommended to obtain a CARFAX Canada Vehicle History Report. This report will help the mechanic to check whether the vehicle was repaired properly.

The amount you paid for the vehicle will be subject to sales tax when you register it, especially if you purchased it privately.. Your provincial licensing office can provide you with information about the exact amount you'll need to pay.  Keep this in mind so that you can find a vehicle that matches your budget as well as your expectation.

Before going for negotiation, establish the maximum price range you are willing to pay for the specific vehicle.  That way you will save time and effort.

If you're bringing someone along for the negotiation, ensure that you both are on the same page. Conduct your research beforehand and discuss the price range, maximum limit, and negotiation strategy together. If you are arguing or questioning each other in front of the seller, it can have a negative impact the deal. 

If you discover that the vehicle has been in an accident before, inquire with the seller about the extent of the repairs.  Ask whether the previous damage had any additional impact on the vehicle. Don't hesitate to pose relevant questions to the seller about the vehicle. If you find any other issues during the pre-purchase inspection, inquire about those issues without reservation until you are satisfied. This will help you negotiate better because once you finalize the deal whether it's fair or not, you won't have any recourse. 

Be confident while negotiating for a low price, while also striking a balance between your offer and the seller's expectations. . Assert your proposal with certainty, yet avoid coming across as domineering or pushy. Similarly, steer clear of sounding uncertain during negotiations – your offer should not be presented as a question. In situations where the deal isn't progressing favorably, refrain from becoming frustrated. Instead, stay composed and work towards shifting the negotiation in your favor. Control your emotions if circumstances don't align with your expectations. 

Negotiation involves finding a balance between the minimum and maximum prices. Avoid making an offer that might come across as an insult to the seller. Such an offer could lead the seller to lose interest in the deal. Put yourself in the seller’s shoes – if you were the seller, would you appreciate receiving an excessively low offer?

Buying a car is a big decision, and it's not something you do frequently. . So if you receive a counteroffer, take time to think about it. However, avoid prolonging the decision excessively, as there might be other potential buyers who could present more favorable offers than yours. Strike a balance between acting thoughtfully and avoiding unnecessary delays.

If the deal is not aligning with your expectations or isn't working out, it is advisable to consider walking away.. Try not to get too attached to the vehicle, otherwise, you will miss better deals out there. If the seller is not coming to a deal, do not worry, you can get far better deals. Just abandon it. 

Pro Tip - Take a test drive before finalizing the deal to see if the car suits your comfort or not. You will thank us later.

By using these tips, you can negotiate great deals like a pro and grab the vehicle of your dreams at a good price.