How to Negotiate Pre-Owned Vehicle Financing

Here’s a poorly kept secret of the car buying world: no one likes haggling and negotiating. No one – not even salespeople. It can be uncomfortable or intimidating. That’s why arming yourself with knowledge – and confidence – is so important. Here are a few tips to help you negotiate pre-owned vehicle financing.

Financing a Pre-Owned Vehicle

Before you consider making or accepting any offer:

1. Set your budget and stand firm. Even before visiting a dealership, figure out what you can comfortably afford. Experts recommend using the 20/4/10 rule. That is, try to make at least a 20 percent down payment with financing for no more than four years. The monthly payment (including insurance) shouldn’t exceed 10 percent of your income. Determine the max you’ll pay.

 

2. Research, research, research. Use online comparison tools, like cars.com, edmunds.com, and kbb.com to research prices for the make and model you want, particularly those paid by people in your area.

 

3. Lowball it. Don’t start at your top; salespeople will try to bump up the price every time. It’s their job. They’re not giving these cars away! Begin with a low offer that gives you room to negotiate. They’ll ask what the most you’re willing to pay is; again, give a lower number than you determined in step 1.

 

4. Don’t get sucked in by monthly payments. Salespeople try to talk in terms of monthly payment. Why? They’re lower! But they can distract you from your big picture max price. $300 a month is better than $450 – but not if you’re tacking on another year or two to the financing agreement.

 

5. Know your details. It’s best to understand your assets going into the negotiation. For example, if you are trading in a vehicle, research its value and determine what you’re willing to accept. Next, know your credit rating. Those flashy incentives are meant for those with high scores. Factor that into your decision.

If you want a low-pressure/high-satisfaction car purchasing process, visit Palm Beach Auto Sales. We’ll skip the haggling and get you the best pre-owned vehicle financing deal.

Searching for a pre-owned vehicle? Here’s How To Find The Right Pre-Owned Vehicle For You.