You can calculate how much money a dealer should have in the vehicle and negotiate from there. Once you receive the information on the car you want to buy from the listing sites above, you will next want to estimate what the dealer paid for the used car. When negotiating the price of a used car , your goal is to purchase the vehicle below or as close to trade-in value as possible. Buying the car within this range will keep you from overpaying for the vehicle and allow you to rest easy knowing you got a good deal. When you buy a used car, you typically buy it "as-is where-is" unless the vehicle has any remaining manufacturer's warranty left.
If the vehicle doesn't have any warranty left, you will be responsible for any repairs the vehicle incurs. Always check the age of the vehicle and the mileage to see if the manufacturer's warranty is expired. Dealer's have huge mark-ups on the extended warranties they offer.
Why I Refuse to Own a Car
I suggest getting a couple free quotes from reputable online warranty companies to compare against the dealer. You can use these quotes as leverage when negotiating the price of a warranty with the dealerships finance department. If you'd like to learn more about these companies and how to use them to your advantage, visit my extended auto warranty guide. Some dealerships will promote high mileage long term warranties at a cheap price. Beware of this type of coverage, they may be "Powertrain Only" warranties and only cover items that do not commonly wear out.
No matter where you purchase an extended warranty, make sure you read the fine print and understand what's covered and more importantly, what's not covered. Don't let your emotions take over, I've seen people make some pretty dumb purchase decisions based on emotions. Just so you know, a dealer knows when you become emotionally involved and they will hold their ground. If the dealer is not willing to deal or negotiate, kindly thank them for their time and walk away.
I promise you will find another car you'll want to drive. The word "certified" or "certified pre-owned" really doesn't mean that much. It was created by the all mighty car gods to stimulate the used car market to sell more cars. What it does mean is the dealer can mark-up the vehicle's price and entice you with a cheap powertrain warranty that's honored by the manufacturer.
There are only three manufactures that take the word "certified" seriously, and that's Mercedes, Toyota, and Honda. They will spend crazy money to bring one of their cars up to certification levels.
My advice is to not fall for the "certified pre-owned" BS. A car is a car no matter what designation is assigned to it. You should check the history and have a mechanic inspect any vehicle before you buy it. It's better to know your safe than be sorry.
Insider’s Prague: Tourist Traps to Avoid, Things to Do, Where to Eat
I'm not talking about the history of the specific car you're looking to buy, I'm talking about researching the actual make and model of the vehicle. Check past reviews, check recalls, check and research everything. What are the typical repairs, known weak points, price points and cost intervals. A great source for finding good information is using forums or fan blogs when possible.
- 5 Insider Tips for Buying a Used Car!
- Human Factors in Simulation and Training.
- Winning the Influence Game: What Every Business Leader Should Know about Government.
- Future Visions on Biomedicine and Bioinformatics 1: A Liber Amicorum in Memory of Swamy Laxminarayan!
- Local Economic Development and the Environment: Finding Common Ground?
I get this question from readers all the time. So much, I wrote an entire blog post about it. Program car is just a fancy name for "off-lease" or most of the time "previous rental vehicle. What sounds better to you?
Lies, Lies, and More Lies
I have this "program car" for sale, or I have this "previous rental car" for sale? Think about the last car you rented. How well did you treat it? How many people drove it like they stole it and just ragged it out, you've heard the famous quote, "Oh, it's just a rental. At my dealership we would tell customers that previous rentals, I mean program cars, are well maintained because they must keep them running so the rental company can make money.
Truth is these cars go well over the recommended preventative maintenance schedules, especially oil and filter changes because they get re-rented as fast as they hit the lot. I've sold thousands of program cars in my dealerships over my career.
Many of the low mileage used cars you see on a dealer's lot are previous rentals. You will ultimately have to make the decision if you want to buy a program car. These cars normally have some minor interior and exterior nicks and scratches along with marks in and around the trunk area from people tossing luggage into the trunk. An AutoCheck used car vehicle history report will notify you if a vehicle was previously a rental.
As long as you review the history report and have the vehicle inspected you will increase your odds greatly from buying a bad vehicle. So if you're in the market to buy a used car, a program car may be the right choice for you. Car Clearance Deals and Edmunds are the quickest way to compare new car prices in your local area. These online sites will provide you with free, no-obligation price quotes and the discounts you receive will give you confidence on your next new car purchase. Walk away from the dealership knowing you received a good deal, not hoping you did. I can't thank you enough.
Why I Refuse to Own a Car
Next Article -- shares Add to Queue. Image credit: massi67 Getty Images. Neil Patel.
- Shell Games.
- 11 questions to ask when buying a used car;
- How to Buy a Used Car and Save Money.
- Jaspers Basic Mechanisms of the Epilepsies!
- Distance Training: Taking Stock at a Time of Change (Routledge/Falmer Studies in Distance Education).
- Farewell: A Mansion in Occupied Istanbul (Turkish Literature).
- Stephen Crane: A Life of Fire.
- 7 secrets of car showrooms as revealed by an insider - the facts before buying - Mirror Online.
- A Roadmap to the Successful Development and Commercialization of Microbial Pest Control Products for Control of Arthropods.
- Running with the Devil: Power, Gender, and Madness in Heavy Metal Music (2nd Edition) (Music/Culture);
- The Shadow of Eternity: Belief and Structure in Herbert, Vaughan, and Traherne.
December 2, 7 min read. Opinions expressed by Entrepreneur contributors are their own. More from Entrepreneur. Book Your Session. Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Join Now. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.
Learn More. Latest on Entrepreneur. I confirm that I am over the age of 16 and consent to the collection of the above data. Entrepreneur members get access to exclusive offers, events and more. Login with Facebook Login with Google. Don't have an account? Sign Up. First Name.
Last Name. Confirm Email. Confirm Password. Yes, I want to receive the Entrepreneur newsletter.