If it’s a preowned car you are looking for, preparing yourself will save you time and energy. Not only that, knowing the ins and outs of negotiating a used car price could save you a lot of money.
NADA is the National Association of Automobile Dealers. NADA is the premier resource for finding the value of vehicles, which is why knowing the NADA value of a vehicle before you purchase it is crucial.
The NADA guides give multiple values for each vehicle depending on whether it’s at auction, trade-in, private party, or dealer. The prices come from actual purchase information and are always updated. There are four major factors that are going to impact the NADA value of a used vehicle. Those four factors are 1. Location of the vehicle, 2. Optional accessories (these will of course increase the value), 3. Mileage of the vehicle and 4. Condition of the vehicle.
In terms of location, where you live or where you purchase your used vehicle is going to have an impact on how much you spend. If the demand for used cars is higher in your area the value goes up and so on.
When you walk into a dealership you shouldn’t expect to be automatically taken for a ride (pun intended). Yes, dealers need to make money, and, yes, you are the person who is going to make them money. That said, reputable and trustworthy dealers exist. Do your homework ahead of time and find out who you’re going to be working with. Negotiating for a used car with someone you don’t assume is out to swindle you can take some of the heat off. That said, you should avoid telling the dealer exactly how much you are willing to spend and you should find out as much information about the kind of car you want before you walk in the door to avoid that tendency we all have to fall in love with what we can’t have.
Another great strategy is to buy cars that are at least two years old. A lot of dealerships lease out cars for the first two years of their lives and then they are ready to hit the market as pre-owned vehicles. They are clean and free of any real damage or problems. Additionally, the cost of the car goes down significantly after the first two years. It’s still plenty new, but you’re paying between 45 and 55 percent under the original sticker price.
Negotiating a used car price can feel intimidating. Visit Palm Beach Auto Sales Outlet for a no-pressure experience and the preowned car of your dreams.
