Many people prefer to purchase used cars from the owner whenever possible because it often results in a much better deal than what a dealership can offer.  The key to making this a reality is knowing how to negotiate.  You don’t have to be a slick salesman to get a good deal, you just need to know what to do and some of the key signals to watch out for.  Here are some quick tips to help you more effectively negotiate a great deal when purchasing used cars that are for sale by the owner.

Quick Tips – Used Car For Sale By Owner: Negotiate

1.Understanding the Asking Price

When negotiating for a used car that for sale by the sale, it is important to understand that asking price is exactly what the name implies.  The first characteristic of almost every asking price is that it is actually higher than what the seller expects to get.  They know that you are going to want to negotiate with them, which means that they will tell you a higher price then what they actually expect to get.  Taking their asking price at face value will always one of the worst things you can do (just like paying the sticker price at a dealership).  Because of this, it is never a bad idea to start with a low ball offer.  By making an offer that is lower than what you are willing pay, it is much more likely that you and the seller can find a happy medium.

2. Use Small Increments

When negotiating with the owner of a used car that is for sale, make sure that you are moving up slowly.  A simple rule of thumb is to simply move up at increments of $100 if your price and the sellers price are within $1000 and $200 if your offer is more than $1000 less than the sellers price.  If the owner makes larger jumps than you, then you will get a better deal.  Additionally, if the seller is making bigger jumps in the price, it likely that they really want to get the car sold.

3. Always Make Your Final Offer Twice

If you and the owner cannot come to an agreement, which will happen more often than not, then make them your final offer twice.  By making the same offer twice, you are demonstrating that you are serious about your final offer and not trying to play another game.  You can even tell the owner that the offer will be on the table for a day or two.  This will give them a chance to think it over without the stress that the negotiating environment inherently creates. 

This tactic is particularly effective if you are talking to the owner early in the week.  Most people will place their ads before the weekend, because the weekends will often give them the most exposure.  If you are negotiating with them after the weekend is over, then they know that you may one of the last people that shows interest in their car for while.  The threat of not making a sale at all will outweigh the disagreement over the price, which could give you the edge you need to make the owner agree with your terms.

To most people a car is the second most expensive purchase they will ever make after their home. So it pays to do a little research before you spend your hard earned dollars on the car of your dreams. With that in mind here are 5 things to think about before buying your next used auto.

1. Know How Much Your Current Car is Worth.

Not knowing the current value of your trade-in puts you at a distinct disadvantage when it comes to negotiating on the price of a new vehicle. If the salesman suspects that you’re not aware of the value of your car he’ll be sure to take advantage.

There really is no excuse for this today; you have all the tools available at your finger tips to carry out this basic research. Simply go to http://www.nadaguides.com or http://www.kbb.com to find the current value of your vehicle, remember to take the current millage and condition into account. Now you can go into battle fully armed with all the information you need.

2. Find Out Which Type of Car is best For You.

It’s all too easy to focus on one particular make or model of car, either because that’s all you know and trust or because you’re not aware of the alternative models available.

Always try to establish the type of car you want, for example do you want a saloon or a mini van. Then have a look around the market and look at all the different models available. If you get hung up on just one make of car, not only is your choice severely limited but you’re likely to pay over the odds for it when you find the perfect example.

3. Arrange Your Finance Beforehand.

You may not be aware of this but a car dealer makes a significant amount of his income from selling finance. He has you there as a captive audience and is unlikely to offer you the best rate available, for the simple reason the higher the rate, the more commission he gets.

So always arrange your finance beforehand. There are many good deals available even at the moment, so shop around. It could save you thousands in the long run.

4. Make Sure You Do a Thorough Test Drive.

Never ever buy a used car without giving it a proper test drive. By that I don’t mean driving it around the block a couple of times. You need to test it on a number of different roads and freeways.

Even take it home and make sure the family can fit inside comfortably. If the dealer won’t let you have a through test drive walk away and buy from someone else. It’s going to be your car for the next few years so make sure you can live with it everyday.

5. Not having the car inspected by a qualified mechanic.

I have left the most important until last. Never buy a car without having it fully inspected by a qualified mechanic. Don’t trust the dealer on this one get an independent report.

Take the car away and get a written report on the cars mechanical condition. Again if the dealer won’t let you it’s likely because he’s got something to hide, so no matter how much you want the car, don’t let your heart control your head and walk away.

Follow these five simple steps when you purchase your next used auto and you won’t go far wrong.