Negotiating is the essence of any transaction. When purchasing, you want to negotiate and bring down the price of the product to reduce your cash outflow as much as possible.
Thus, as a seller, you are only defending against the buyer’s negotiation, while as a buyer, you are negotiating. Although there are businesses that do not entertain price negotiations, there are cases where, if you do not negotiate, you will have to overpay. The second-hand market is one such place.
If you are looking to buy a second-hand car, below are five tips on how to negotiate effectively and make the most of it by taking a used car loan to fund the purchase.
- Conduct extensive research
To be able to negotiate proficiently, you will need to know and understand all the components of the car and their importance as well as value. The more you know, the betteryou will be able to negotiate.
Secondly, once you have done the much-needed research on what car you want to buy and what price you are willing to pay, visit your pre-owned car dealer. While at the dealer, instead of telling him all about what you are looking for, start with the cars he has on offer.
If you give up all your requirements and expectations as soon as you meet the dealer, the dealer will be able to sell you what he wants to sell and not what you want to buy.
- Know the business
The dealers make money like any other trade, buy cheap, spend minimally on making it marketable, and sell high. The dealers may also make profits by selling add-ons, such as a loan for second-hand cars and extended warranties. If you are exchanging your old car, they may also make money on the price differential. Therefore, it is important you consider all these options while negotiating with the dealers.
- Choose at least a two-year old car
A car’s price drops between 45% and 55% after two years, and at this age, it will still look nice and the chances of it having a major problem are negligible. Therefore, you may be able to buy one for a good price.
- Go window-shopping
Visiting multiple dealers gives you a fair idea of the prevailing prices. Alternatively, you may browse through online pre-owned car vendors to check the listings. If you want to buy it with a used car loan, it is important to research different available options before making your choice.
Before finalizing the purchase, you should ensure the dealer is authorized and reliable. You may not always have the entire amount you need to buy the vehicle. In this case, loans on used cars may be an excellent option. These are available for up to 120% of the car’s value with maximum repayment tenure of up to 84 months.
Some dealers may be certified by lenders, which works as a guarantee of a quality product. If the lenders were not convinced about the quality, they would not provide the certification and the used car finance. So, negotiate by following these tips and fund your purchase using a pre-owned car loan.