Cheap Used Cars Forum

Andrew Krebs-Smith, Baltimore writer for Examiner.com, wrote this great article that will help you what to do when you're in a new or used car negotiation, check it out:

1. Don't buy under pressure

Don't wait to shop for a car until you desperately need one. That way you don't make any impulse decisions when you look at new cars. Believe me, it's easier than you think. Also, planning ahead allows you to wait for the right price if you are selling your used car. Which brings me to my next point...

2. NEVER trade-in at the dealership (unless your time is more important than your money)

Any car salesman will cringe reading this, because used car trade-ins are where dealerships make a lot of money. You will always make more by selling privately. It can be a hassle, and you may have to wait for a over a month to make a sale, but you can easily profit $1,000 over what you might get at a dealership.

3. Know what you want before you decide to buy

Don't decide to buy or try and negotiate during your first trip to the dealership. In that situation, you have no negotiating leverage because you don't have enough information. Look at user reviews online, talk to your friends and family, and visit other dealerships to compare prices. That way, when it comes time to talk money, you know what your options are.

4. Know how much you are willing to pay

Set the maximum price you are willing to pay before you even start looking at cars. This prevents irrational rationalization at the dealership when you can be more easily swayed (by the sales staff, by the sexy cars, by your significant other...).

5. Shop around for loans

Car companies and dealerships make a great deal of their money through financing. If you line up financing in other places before you go to the dealership, you will make sure that you pay less over the long-term. For example, if you finance your $30,000 car at 4% versus 5% interest, you can save yourself hundreds or even thousands of dollars. Credit unions traditionally offer some of the best rates.

6. (optional) Buy American

Actually, as a whole, I think American cars lack the quality, craftsmanship, refinement, and reliability of their import counterparts. But there exists a unique situation in the car world: American car companies have gone bankrupt, and they are offering ridiculously discounted car prices, and are also trying harder to win back customers. So for the next year or so, I suggest you at least look at American cars. Some of them are a great buy.

Source: http://www.examiner.com/x-11311-Baltimo ... r-used-car

Here are a few tips to successful negotiating.

Remain positive and confident

Don't talk down to your opponent

Show up prepared and ready to counter anything that may come up

Bring ads from other dealerships with you as an extra weapon

Finance your loan before you arrive at the dealership so as to avoid paying unnecessary extra fees

Bring a friend with you for extra support

Something that you should look out for from salesmen is the extra little tricks that you will likely encounter that will try to force or rush into a buying decision.

You have to remember that they are trying to negotiate you into paying more money just as you are trying to negotiate paying less. Here are some of the things that you can expect to hear from them.

1. These cars are flying off of the lot. It may not be available for the same deal tomorrow. (Threaten to leave and they will ease up and try to change their strategy)

2. This deal is only good for today. If you come back tomorrow I can't guarantee that the deal will be the same.

3. I'm an honest man. Look at how many cars I've sold this weekend (This is where he will show you his list of sold cars. If he does this, then tell him that he doesn't need your money).

4. I hate to tell you this but I have another offer on the table from a man that is willing to pay more money than this. I am just waiting for his paperwork to be returned. (Tell him that if he promised the car to someone else, you don't want to step on someone else's toes and that you should leave then).

5. To cover the overhead costs, we have paid $13,000 for this car (Just check your paperwork in your folder and prove them wrong).

Source: Used Car Chicago

Those five tips in buying a new car or used car are very useful to successfully buy a good one. Personally, I still prefer other brands like Italian cars. They are already tested by generations and time.