How to Negotiate a Used Car Price
To negotiate a used car price, research the market value first, get pre-approved financing so you can negotiate on price alone, and use any inspection findings or open recalls as use. Make a firm, reasonable offer below asking, negotiate the total out-the-door price rather than the monthly payment, and be willing to walk away. Preparation and a VIN history check are what give you real bargaining power.
Prepare before you talk price
- Research the car's fair market value for its year, mileage, condition and region.
- Get pre-approved for financing so the dealer's loan isn't your only option.
- Run a VIN, recall and history check to find negotiating use.
- Set your maximum out-the-door number and stick to it.
Use use the right way
Facts win negotiations.
Facts win negotiations. An independent inspection that finds worn tires or brakes, an open recall, a needed service, or comparable cars listed for less are all concrete reasons for a lower price. Present them calmly as the basis for your offer rather than criticizing the car, you're aligning the price with reality, not attacking the seller.
Negotiate the right number
Always negotiate the total out-the-door price, the car plus fees and taxes, not the monthly payment.
Always negotiate the total out-the-door price, the car plus fees and taxes, not the monthly payment. Payment-focused negotiation lets a seller stretch the loan term to hide a higher price. Keep financing, trade-in and price as separate conversations so each is negotiated on its own merits.
Be ready to walk away
Your strongest tool is a genuine willingness to leave.
Your strongest tool is a genuine willingness to leave. If the seller won't reach a fair number, thank them and go, often the best offer comes as you head for the door, and if it doesn't, another car will. Never let urgency or pressure push you past your maximum or skip your inspection and history checks.
Frequently Asked Questions
How much can you negotiate off a used car?
It varies with demand and how the car is priced, but researching market value and using inspection findings often yields a few hundred to a couple thousand dollars.
Should I negotiate the monthly payment?
No. Negotiate the total out-the-door price. Focusing on payment lets a seller hide a higher price in a longer loan.
What gives me use?
Market-value data, comparable listings, an independent inspection's findings, open recalls, and pre-approved financing so you're not dependent on the dealer's loan.
Is it rude to walk away?
No, it's normal and effective. A willingness to leave is your best use, and the right car and price will come along.
Related Guides
Sources: FTC, Buying a Used Car · Consumer Financial Protection Bureau, Auto Loans.