When you are ready to purchase your new vehicle, you can start negotiations with the seller. In order to properly negotiate with a dealership, you need to have all the pertinent information on hand. You want to avoid being blindsided with options and fees by preparing yourself with knowledge of fair market values and market trends. In particular, if you are looking at certified pre-owned vehicle sold at a dealership, the negotiations may be more challenging due to the higher prices on these cars. Be cognizant that it is the extended warranty that makes this car “certified,” and the dealership paid for this warranty, often raising sale prices by $2000 or more. Negotiating these types of cars relies on your knowledge of warranty costs and how they are influencing the price. You will want to offer the dealer a fair trade for the warranty while still maintaining the terms of your budget.
Before you head to the dealership, consult a guide like Kelley Blue Book. They list value estimates on used vehicles, including certified pre-owned numbers, giving you a chance to compare the certified prices with other prices. To search for your particular car, enter the make and model on their website. Be sure to choose the “Certified Pre-Owned Value” from the list, and be clear about the cars mileage in order to receive the most accurate price.
Kelley Blue Book’s website will give you the opportunity to check the possible price the dealer paid for the warranty but allowing you to compare the “Suggest Retail Value” to the “Trade-In Value”. The difference between these two prices will give you a rough estimate as to what the dealer may have paid and what you should be willing to offer when you start negotiating. It is recommended that you offer $2500 over the trade-in value in order to cover the warranty and be competitive. To back up your offer, print off your findings from the website. Many dealerships consult these guides themselves and may be more willing to agree to your terms if you provide them with proof of your fair offer. Sometimes it will help to do a little extra research on classified sites in order to stay on top of market trends and changes. The dealership may own the vehicle for more than Kelley Blue Book recommends because of demand, upgrades, or modifications, and you will want to be aware of these factors so you can modify your offer accordingly.
When you approach the dealer, clarify that you are ready to purchase the car immediately. Make sure you specify how much you are willing to pay over the trade-in and how much you are willing to pay for the warranty. Typically, you will want to offer $1000 over trade-in with $1500 for the warranty, equaling the recommended $2500 stated earlier. Keep the negotiations friendly. Be firm with your offer, explain your budget and what you’ve learned from your research, but if the dealer is rude or stubborn, shop elsewhere. On the other hand, if your price is accepted, take the deal. Or, if the dealer presents a counteroffer that you are comfortable with, take the deal. At this point, you should be aware of fair market values well enough to keep the negotiations reasonable and lighthearted.
The Blue Book guide like Kelley Blue Book or NADA guide can really help you in a bargain. Before negotiating with the salesman, you must consult Kelley Blue Book or NADA guide to see the approximate Blue Book Value of the vehicle which you have shortlisted to buy. We suggest paying $500-$1500 as an extended warranty price (depending upon the Year of Manufacture and the current condition of the vehicle) above the Blue Book Value which can be beneficial for free fixes included in the warranty. Since, by giving such an amount, you can cover up the risk for repairs and drive worry free!
Search for Kelley Blue Book or NADA guide to consult the vehicle price on Google and you will find the Blue Book Value using their Blue Book guide price list.