Used car negotiation

[winjim]

Just a quick query as I've never bought a used car not from a main dealer and I'm not really comfortable with haggling etc (Probably some input from my autism there, not keen on this sort of social interaction). I'm awkward and a bit clueless in this sort of situation.

When buying a used car from a dealership, (not a main dealer, a used car trader), what's the expectation regarding price negotiation, for example in percentage terms? Is there a social convention or norm around it? Is there an amount I'm expected to offer or would I be laughed at?

Considering cars probably around the 5 grand range as a ballpark, or hoping to haggle a slightly more expensive one down below that amount. I will need finance but can probably scrape together a modest deposit.

TIA

 

[Bonefish Blues]

Ooh finance. Gives you more leverage, for sure, since the dealer likely makes as much on that as he does on the car.

The answer is 'depends'. If it's desirable, and well-priced, then unlikely to get something better than nominal. If it's been sat on the lot a while, and you're financing it, then likely to have some flex built in. You'll have done the obvious and conducted an Autotrader search on the model to see what the advertised prices are for comparable cars, I guess?

 

[Drago]

Make and model? Age? Mileage?

Finance straight away gifes you a small lever as they may make as much commission on that as they do profit on the actual car, so if they dont do at least something threaten to go get a Tesco loan. In fact, the interest saved by getting a bank loan is probably greater than an discount youll be able to haggle anyway.

 

[nogoodnamesleft]

I suspect different people will feel differently about haggling and neither is right or wrong, it's just personal. I haggle for far more than many people do, even sometimes for new retail products in a store, even once for a holiday (and it got down to a third of the initial published asking price).

Remember haggling (even in the UK) is not confrontational (or shouldn't normally be). If you (OP) decided to haggle, make it light hearted, not quite a joke but "I like the car but for me it's too much for what it is. Is there any movement possible on the price".

If not comfortable face to face haggling, maybe go look at the car but leave saying "I like it but for what it is the price is too high", leave and haggle over the phone later. Or even by e-mail.

Maybe trawl the 2nd hand ads for similar cars and find some cheaper so you can say "It's a high price for that age, mileage, condition" (you don't have to provide evidence or anything as dealer will know the price ranges being asked).
Maybe look for non-price improvements (eg longer warranty).

How successful and negotiations are also probably depends on how many similar vehicles there are on the market and how rare the vehicles are. If there are loads of that model available then dealer will already know you can walk down the street and find 3 others at lower prices. If that model rarely comes on the market and is sought after then dealer will know if you don't buy at the asking price somebody else will fairly soon.

 

[kynikos]

Not as much as there used to be - due to car supermarkets, autotrader, information available on the internet etc. Margins are a lot tighter than they once were. They'll make more from the finance than the car so that's your leverage.

 

[winjim]

That's all pretty useful, cheers. So basically if I pay the advertised price then I'm not being taken for too much of a mug...

 

[Jameshow]

I'd haggle by perhaps 10%?
If they have priced it at 5499 for instance is, he's doing so to get £5k for it?

 

[Bonefish Blues]

That's all pretty useful, cheers. So basically if I pay the advertised price then I'm not being taken for too much of a mug...

If you like it and you're happy to pay the sticker price, no.

 

[nogoodnamesleft]

That's all pretty useful, cheers. So basically if I pay the advertised price then I'm not being taken for too much of a mug...

I've only purchased 1 car in the last 20 years and that was from a used car dealer so my experience of the specific market is limited.

But I suspect it might depend on how long the dealer has been trying to sell the particular vehicle and how sought after that model is.

eg on initially getting the vehicle the dealer might put it on the market at a high price "just in case somebody goes for it" but after a time of not selling start reducing the price.

Also, from my limited experience, used cars are passed around dealerships. eg a used Ford might be traded-in against a new Skoda in Scotland but main dealer doesn't want to sell a used Ford so passes it to the used car dealerships. And when one doesn't manage to sell it for a bit they'll pass it on to another dealer, etc.

I saw one car at a dealer in SE England in a very poor state for it's age (bad rust) and asked the dealer and apparently the last owner was costal Scotland and traded it in up in Scotland and several dealers had been unable to sell before it got to where I saw it.

 

[Dadam]

I’d never pay screen price for a car. Even if I only got 50 quid off it. As mentioned if they start to indicate there’s no more movement, ask for a value add. More warranty, a service plan, even a full tank of fuel. Not to be sniffed at these days!

 

[screenman]

I'd haggle by perhaps 10%?
If they have priced it at 5499 for instance is, he's doing so to get £5k for it?

You would not get that off of any of my customers, how much margin after all costs do you think they have in a car?

 

[screenman]

Having been a proper car dealer, over 500 units a year, I can tell you the most I ever gave off was £95 and that was not very often. The dealers offering to haggle with you often do not back things up should anything go wrong in my experience. I will not offer advice on loans etc other than to say do some comparisons.

 

[Sharky]

I’d never pay screen price for a car. Even if I only got 50 quid off it. As mentioned if they start to indicate there’s no more movement, ask for a value add. More warranty, a service plan, even a full tank of fuel. Not to be sniffed at these days!

Reminds me ....

My old boss used to ask if they could throw in a set of car mats.

 

[alicat]

Think I'd do a search on the value of similar cars elsewhere in the country and/or pretend that I was selling a similar one for a friend and ask dealers how much they would pay for it and then work from there. The reason that I would be selling it for a friend would be so that I would have an excuse for not giving the reg number.

 

[winjim]

Having been a proper car dealer, over 500 units a year, I can tell you the most I ever gave off was £95 and that was not very often. The dealers offering to haggle with you often do not back things up should anything go wrong in my experience. I will not offer advice on loans etc other than to say do some comparisons.

That's useful to hear from someone in the industry.