How to Negotiate a Used Car Price

To negotiate a used car price, know what similar cars sell for, negotiate the out the door total, keep the trade in and loan separate, and be ready to walk away.

Do Your Homework First

Your best leverage comes from knowing what a fair price is. Look up the car's value with a pricing guide. Then look at listings for the same year, model, trim and similar miles in your area.

Note how long the car has been listed if you can see it. A car that has sat for a while may have more room on price. Keep a few comparable listings on your phone. They make your offer concrete.

Read the history report too. An accident or a lot of owners can be a fair reason to offer less. Our guide on reading a vehicle history report explains what to look for.

Negotiate the Out the Door Price

The listed price is not what you pay. Fees, add ons, tax, title and registration all get added. If you only negotiate the listed price, some of your savings can come back as fees.

Ask for the out the door price in writing and make your offer on that total. Our guide to car dealer fees explains which charges come from the government and which ones the dealer sets.

Keep Three Talks Separate

A car deal often has three parts. There is the price of the car, the value of your trade in, and the loan. When they are mixed, it is hard to tell where you gained and where you lost.

• Settle the car's price first.
• Then talk about your trade in. Know its value ahead of time, and consider getting a separate offer on it.
• Then talk about financing. A preapproval gives you a rate to compare.

If you are asked what monthly payment you want, steer back to the price. Our guide on dealer financing vs a bank loan explains why.

Make a Reasonable First Offer

Start with a number you can back up with your research. A lowball offer with no reason behind it can end the talk before it starts. An offer tied to real listings, the car's history and its condition is harder to brush aside.

Stay calm and polite. Silence after an offer is fine. Let the other side respond. If they counter, you do not have to answer right away.

Move up in small steps, and give a reason each time. If the seller will not move on price, ask for something else of value. That could be new tires, a fresh set of brakes, a second key, or an add on taken off the bill.

Get quotes from more than one seller when you can. Ask two or three dealers for written out the door prices on similar cars. A real quote from one lot is a fair thing to show another. Just make sure the cars truly match in year, trim, miles and condition.

Use What the Inspection Finds

Real problems are the most honest reason to ask for a lower price. Worn tires, brakes near the end of their life, a leak, or a stored trouble code all have a repair cost.

Ask the seller to fix the problem, lower the price, or both. Bring the details, not just a feeling. A written report with photos is much harder to argue with than a vague concern.

If a problem is serious, like signs of frame damage or flood damage, the better move may be to walk away rather than negotiate.

Know When to Walk Away

Walking away is your strongest tool, and it only works if you mean it. Decide your top out the door number before you go in, and stick to it.

Pressure is a sign to slow down. If you are told the price is only good today, or that someone else is coming to look, you can still leave. There are other cars.

It also helps to pick a seller with a good record. Our dealer directory shows how past buyers rated each lot.

Let the Report Do the Talking

An inspection report gives you facts to bring to the table. Our used car inspection covers 122 points, a full OBD-II scan with readiness monitors, a road test, and tire and brake measurements, with photos of anything we find. We go to the car, you do not need to be there, and the report comes the same day. What you do with the findings is up to you.

Common Questions

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