How to haggle buying a second hand car

BeenThroughItAll

Stoke wrote: »

Why? if you're stood in front of them with x thousand pounds in cash, they will absolutely jump at dropping the price for you. Every day it doesn't sell, is another day it sits on your forecourt, depreciating in value and taking up room.

Even the most non-negotiable dealer will take less than his asking price, trust me. Just flash the cash in front of their face, and tell them you're going elsewhere.

Highly unlikely, they'll make more money off finance, and it'll cost them to bank cash. Unless you're happy with an off-the-books, no invoice, no comeback purchase, cash is far from king.

Stoke

I'd agree. Take it a garage, get it fixed. Unless you simply don't like your current car and want something new, there's no point in switching.

motorguy

Stoke wrote: »

Why? if you're stood in front of them with x thousand pounds in cash, they will absolutely jump at dropping the price for you.

This is a common myth. The market has changed. Dealers have to price at the cheapest point otherwise the phone doesn't ring. I'd consider myself a hard negotiator and found two cars for my son to look at, both otherwise the cheapest in the country, both similar miles, same spec, both priced at £8995. I expected to get an easy £500 off. First dealer would only knock the £95 off as a "goodwill gesture" as he cited that the car was already the cheapest available, the second dropped £45 off.


Both of those were with hard negotiating and "prepared to walk" stances (in fact with one we did walk).


You're also under the misconception that its a buyers market. Its not. Good quality used retailable cars are harder to find than customers to buy them. If it suits the dealer to sell at a particular price point, then great, likewise he may well chose to hold on for a particular price.


They are running a business after all, not firesaling every car out the door.


Also, find the right car at the right price in the first place - its better to get £50 off a car at £8995, than £1000 off the same car at another dealers at £9995.

Stoke wrote: »

Every day it doesn't sell, is another day it sits on your forecourt, depreciating in value and taking up room.

Another myth. A dealer will usually quite happily have a car on his forecourt for 3 months before he really needs to think about moving it on at a heavily reduced price.

Stoke wrote: »

Even the most non-negotiable dealer will take less than his asking price, trust me. Just flash the cash in front of their face, and tell them you're going elsewhere.

To which their answer will most likely be - "well were are you going given our car is the cheapest out there?" - assuming of course you've "done your homework" first and found a competitively priced car in the first place.



And another myth - dealers prefer cash sales. Nope. Cash costs them money to lodge into the bank, its hassle for them, and they're missing out on finance commission if you're not taking finance.

motorguy

Stoke wrote: »

I'd agree. Take it a garage, get it fixed. Unless you simply don't like your current car and want something new, there's no point in switching.

+1


Totally agree.

Stoke

motorguy wrote: »

To which their answer will most likely be - "well were are you going given our car is the cheapest out there?" - assuming of course you've "done your homework" first and found a competitively priced car in the first place.

Dealers are rarely the cheapest out there. Sometimes a dealer is as cheap as someone local on Gumtree, but 9/10, there are plenty of private sales that are much cheaper.

So, if the dealer wants more, I would expect something additional. A warranty? A decent one at that, and some other stuff thrown in.

I know for a fact most dealers are taking these cars as part ex and heavily cut prices.

motorguy

Stoke wrote: »

Dealers are rarely the cheapest out there. Sometimes a dealer is as cheap as someone local on Gumtree, but 9/10, there are plenty of private sales that are much cheaper.

Uh huh. Not comparing like with like though are you? Unless you're suggesting dealers should compete on price with private sellers?

Stoke wrote: »

So, if the dealer wants more, I would expect something additional. A warranty? A decent one at that, and some other stuff thrown in.

Absolutely. If theres no value add, then don't use a dealer. However - as is the case here - most people expect a dealer to be able to take a trade in, sort out finance, ensure the car is prepared to a reasonable standard, is free from major faults and put a warranty on the car for them. All of that costs £££



If you're buying some cheapo, then yes you're going to get a better car for less money buying privately.

Stoke wrote: »

I know for a fact most dealers are taking these cars as part ex and heavily cut prices.

You "know for a fact"? Thanks Captain Obvious - dealers take trade ins at trade price and add a margin shocker!

If a dealer has £2000 gross margin, typically hes probably netting £500 or so in his hand after all other costs are paid.


If he has more margin than that OR hes prepared to take less profit at a point when he wants to move the car on, then great.


Neither of which means hes going to give away £££s in discount if he doesn't want or need to.

jimjames

motorguy wrote: »

You're also under the misconception that its a buyers market. Its not.

Isn't this time of year more of a buyer's market? I'd imagine less buyers around in the weeks up to Christmas.

Having said that it seems pointless to get yourself into £3500 of debt in order to avoid paying £200 for new brakes (not breaks)

bobbymotors

Motorguy is spot on.

Having sold 5000 cars in my time before retiring if you know you've got a nice car in a good colour and spec with reasonable miles and a full history, it WILL sell, there is no panic. Yes you have to be competitive but you dont have to give it away.

Another thing I would say is that if you actually bid then bid to buy.

I used to get (on a £3000 car) will you take £2700 for it. To which my reply was 'well, if we can sort the money out, will you leave a deposit on it now'

Yes = sold

no / I'm just looking = timewaster to which I would reply well when youre ready to buy by all means come and make me an offer, there's no sense talking money if you're not buying

They often replied that they wanted to see what I'd take for it. To which the stock response was that I had no idea until somebody made me an offer, which they hadnt done.

And timewaster to a car dealer = avoid, serve someone else.

Just telling it like it is!

motorguy

jimjames wrote: »

Isn't this time of year more of a buyer's market? I'd imagine less buyers around in the weeks up to Christmas.

Dealers know december is quiet so its not coming as a surprise to them. Whilst a particular salesman might want to get his commission it doesnt mean the dealership will want to firesale stock, particularly given they will know they will need a load of stock for January.

Yes, there are definitely deals to be had, but i wouldnt be taking the aggressive approach, waving a wad of £20 notes about and a "doing the dealer a favour" type approach.

jimjames wrote: »

Having said that it seems pointless to get yourself into £3500 of debt in order to avoid paying £200 for new brakes (not breaks)

+1

I got a friend of mine a fantastic peugeot 406 TD some years ago - full (and i mean FULL) service history, mint, for £500. Instead of keeping it maintained during the year he let it get on top of him a bit and when he took it to get MOT'd the garage said it needed 4 tyres, front pads and discs and an exhaust back box and "wasnt worth spending the money on"

So he scrapped it. Bought a Fiat Stilo 1.9JTD for £1500 off a dealer (against all advice), cost him £1,000 in repairs in a year and he sold it the following year for a few hundred.

Had he spent the money on the Peugeot he'd have easily got another year or two out of it.

lewishardwick

Another vote for keeping it. Surely you have a competent friend who can help with replacing discs and pads. After a bit if practice I can now do both front discs, pads and a fluid change in under two hours. Main dealer want near £300. Parts were £60...