How do I appropriately haggle for a used car?

July 11, 2010 4:31 PM

I've been looking for a specific, older car model and found one on Craigslist in beautiful condition. It's in Philadelphia, I'm in New York. I'm going this week to look at it / buy it. I think the guy is asking too much for it. Some people I've asked say don't discuss price until you show up, but I'm not sure if that's right. How do I do this?

He's asking $7,000. Although the car is in amazing shape, I think that's too high, according to the NADA value, and also because when I spoke to him he said that after posting the ad, he discovered the a/c doesn't work, although insists that it will be a small fix, which, even if true, will be some hassle.

I'm looking to pay between $5000 and $6000 (NADA value is $4500).

I'm feeling like by not bringing up the price/what I'm willing to pay beforehand, I've tacitly agreed that I'll be paying what he's asking. I also don't want to waste his and my time by showing up only to find that he won't accept a penny below $7000 (although I doubt this is the case).

We kind of have agreed that I'm a "serious buyer," meaning that if all goes well, I'll be handing over money and driving the car home that day. (This might have been wrong in hindsight...)

I assume that he's open to negotiate since the car has been for sale for a few months and he's mentioned my "making an offer," but I just have no clue how this works.

posted by thebazilist to shopping (19 answers total)

I would think that if he mentioned you making an offer, then there's not a tacit agreement that you'll necessarily pay what he's asking. If it were me, I would wait until you were face to face to talk about price. It's harder to say no in person.
posted by amro at 4:36 PM on July 11, 2010 [1 favorite]

If you're willing to travel across states to look at a car, I think he knows he already has you. What's the worst that could happen for him? He loses a couple of hours, where you lose days of travel and costs.

I'd bring it up beforehand and clear it up before going. You have much more to lose than he does.
posted by razdrez at 4:38 PM on July 11, 2010 [1 favorite]

you lose days of travel and costs.

I think you're overestimating the distance between New York and Philly.
posted by amro at 4:40 PM on July 11, 2010 [1 favorite]

look at the car before you offer a price. Just because his ad states it's in great shape and the pictures look nice doesn't mean you're going to be impressed when you see it in person. There are too many factors with a used vehicle to offer a price until you've seen and driven it. Also the A/C not working could be any number of problems, from a $150 recharge to a multi-thousand dollar repair. Bottom line, look at the car, offer what you're willing to pay, and if he doesn't take it, then you're only out a day trip.
posted by cosmicbandito at 4:42 PM on July 11, 2010 [1 favorite]

I'm feeling like by not bringing up the price/what I'm willing to pay beforehand, I've tacitly agreed that I'll be paying what he's asking.

Regardless of whether this guy thinks this or not, if you feel like you have tacitly agreed to this going in, then I think you are going to end up paying what he's asking, or a lot closer to it than you are comfortable with.

It's hard to tell from your post whether you feel this way because this guy actually is pressuring/driving for a higher price, or just because of your own nerves/sense of obligation. But I will say that a lot of sales techniques rely on making the prospective buyer feel a sense of obligation/feel that they will have wasted the salesperson's time of they don't buy/that things have already gone too far for them to back out/renegotiate.

All I'm saying is lots of people end up spending a LOT more money than they have to because of feeling the way you feel.
posted by Ashley801 at 4:50 PM on July 11, 2010

We kind of have agreed that I'm a "serious buyer," meaning that if all goes well, I'll be handing over money and driving the car home that day. (This might have been wrong in hindsight...)

I think it might be a good idea to stop thinking this, too. All you owe him is your good faith, meaning you are seriously interested in the car, you're going to keep your appointment to go out there and see if you like it, that you'll determine in your own personal subjective judgment the amount of money you'd be willing to part with for it, if any; and that you have that money available. You don't owe him any more than that.
posted by Ashley801 at 4:56 PM on July 11, 2010 [6 favorites]

If he knows you are driving from NY then you are at a great disadvantage. I drove 4 hours to buy my car and didn't get a dollar off the dealer's asking price - but it was already a great deal and I was prepared for that to happen anyway.

The power to walk away (not just pretending, you really need to be prepared to do so) is your best negotiating tool. I would try to clear as much up as possible before the actual trip.

Also bring a friend. Good cop bad cop. Better if it's your SO/senior family member. "Well let me talk to my husband/uncle cuz he's really the one paying for it."

Good luck!
posted by jstarlee at 4:58 PM on July 11, 2010

Ashley801 is right. Can you take someone along with you? It'll make it easier to walk away if you can't come to an agreement.

Although Philly and New York aren't far apart, absolute best case scenario is that you'll make it in 2 hours (one way) by car if you hit no traffic, if it's the perfect time of day, and if you're driving like a bat of hell. If you're coming by bus or train or a combination thereof, it almost certainly will take a whole lot longer.

Good luck!
posted by vincele at 5:02 PM on July 11, 2010

This is something I've never, ever understood about haggling. You have a maximum you're willing to pay. That number is well under his asking price. What's the harm in calling him before you make a trip and saying "hey, the max I'm possibly willing to spend on the perfect car is $6k. Am I wasting your time and mine if I make the drive down there?" Whatever his answer is, you're both ahead.

If that seems crazy then yes, you need to be willing to make the drive and walk away if the price is over your limit.
posted by kavasa at 5:03 PM on July 11, 2010 [3 favorites]

You might consider taking the max you're willing to spend (or $250 - $500 less, to bring it more into the ballpark of what you'd like to spend), in actual cash. That way, you have a hard limit on what you can offer him. Also, him seeing $5,000 in cash might get him to go for the deal, where (at least for me) $6,000 on a check isn't quite as exciting to the lizard brain.
posted by Alt F4 at 5:12 PM on July 11, 2010 [1 favorite]

If you're coming by bus or train or a combination thereof, it almost certainly will take a whole lot longer.

Not to beat a dead horse here, but I have lived most of my life between these two cities. It takes less than an hour and half to travel from Penn Station to 30th Street Station by train.

If the seller says to you, "Wow, you've come so far just to see this car!" then just downplay it. "No biggie, I was planning to be in the area anyway" or something.
posted by amro at 5:13 PM on July 11, 2010

Thanks everyone, although I see the answers are coming down equally vehemently on both sides of the beforehand/in-person fence. But all answers are helping me think through what I want to do.

I just wanted to chime in to say that I'm not making a crazy trip: it's going to be a pleasant one-hour train ride, equal to what I do every day on my regular commute, from 5 blocks from Penn Station to 5 blocks from the Philadelphia station, after which I'll be visiting friends of mine in town. There are not many cars for sale in Manhattan so anywhere I wanted to buy a "local" car would entail a trip of 30-60 minutes. The seller knows all of this so I'm not really at a disadvantage as far as who's wasting more time. That said, it's certainly not something I want to have to do again if I can help it -- "going home to think about it" would be a little silly.

I'm still working on who's coming with me, and I'm gunning for my Super-Haggler cousin, but I'd still like to feel confident in my own position and abilities.

So thanks for the pep-talking!
posted by thebazilist at 5:17 PM on July 11, 2010

I would negotiate a price beforehand, subject to the car being in as-described condition. If it is as described, you buy the car once you arrive and check it out and both you and the seller are happy. If you find it is not as described, then you can renegotiate a lower price to account for the deficiencies if the seller is willing. Why waste your time and money travelling if you don't know that a deal will be possible? What is the advantage to you in not discussing the price until you arrive?

In fact, if this were me, I would negotiate a price beforehand, subject to the inspection of a mechanic of my choosing, sign something to that effect, and then arrange to have a local mechanic look at it and ask the seller to drop it off for you. Get the mechanic to fill out an inspection report for you, have a look over it, and have a chat with the mechanic (you want a small shop so that you can actually talk to the person who looked at the car). I trust a mechanic to evaluate the condition of a car far more than I trust myself. If the mechanic's report is positive, meet the seller at the DMV with a cashier's check. If it is negative, then you are out $100 or so, but you've saved yourself the hassle and expense of travelling to look at a car that you won't want to buy. If the report finds a few problems, the mechanic will surely be willing to write you up an estimate for those repairs and then you can show that to the seller to help negotiate a more suitable price. I've done this before and it has worked out well.
posted by ssg at 5:22 PM on July 11, 2010

I think you are approaching this with entirely the wrong mind set. It appears that you have decided to buy the car even though, a) you think it is priced too high, b) you have never seen it, and c) it has a flaw that was not originally disclosed in the price. Is this such a rare example of this make and model that you absolutely can't let it pass?

Let's make believe it's not the last example of its kind.

He needs to sell this car. You do not need to buy it.

It has a certain value to you. It is worth no more or less than that amount.

You have suggested to us that you might be willing to pay up to $1500 more than what NADA says it is worth. Why? Justify your beliefs,

Go to Phil. with a specific set of criteria in mind regarding condition and value. You do not need to disclose to him what your criteria are. Remember, it is worth what it is worth to you, no more or less. If the car fits your expectations and you are willing to buy it (notice I didn't say slobbering all over yourself to buy it) offer him that amount with every intention of walking away if he does not accept. If you want to be a "nice guy" be prepared to meet him slightly above what you first offered.

The world will not end because you didn't get this particular car.
posted by Old Geezer at 5:39 PM on July 11, 2010 [1 favorite]

As a person who's bought nothing but used cars both from private owners and dealers I've got to say I never discussed the price before seeing the car in person.

Go on your trip. Test drive the car. While your on the test drive take the car to a mechanic to get checked out. If you call ahead you may be able to find one that will look at the car for free. Personally I've never paid more than $25 for this service. The mechanic will either give you a clean bill of health or at least give you an idea of what it will cost for repairs.

Then when you get back from the test drive you can talk about the price. Be honest. Ask what's the lowest the seller is willing to take. Let them know you believe the value to be $4500, but that you're willing to spend $5000. That gives you some wiggle room with your budget. Honestly be willing to walk away. Don't let the guy make you feel bad about "coming all this way to go home empty handed'' or that you "might not be able to find another deal like this one."

In my experience 1.) people over price their cars to allow for haggling and 2.) if he's had it for sale for awhile (especially in this economy) he's probably willing to let it go for less just to be rid of the thing. Now, these two points are moot if we're talking about some kind of antique or otherwise collector car. I am from the Western United States and this is my experience out here in the land of the Mother Road. I don't know if things are a lot different where you come from.
posted by TooFewShoes at 5:49 PM on July 11, 2010 [2 favorites]

Personally, I think the haggling that goes on when you're there should be about things you've discovered upon inspecting/driving the car. If it handles a little roughly, if that door is chipped, if there's that tear in the seat, then these are all things you can rightfully bring up.
"I guess to get that fixed up would be $X, and I'd want to get those brakes tightened which would be about $Y, so I can offer $PRICE - X - Y.

Before you leave, if you let him know that the value of such a car is around $4500, but you're willing to spend up to $6000 for something in exceptional condition, then it gives him more time to become accustomed to the idea. If he thinks you're showing up with $7000 and then you offer $5500, it'll be much harder to take than if he already knew you weren't going above $6000.

As with the car though, YMMV.
posted by twirlypen at 6:08 PM on July 11, 2010

If it's not too late I wouldn't mention that you've been looking for this specific model. If the seller knows this, and if he knows that it's a relatively uncommon model or feature set, then you're at a pretty big disadvantage, since he knows there's not a lot of cars for you to choose from.

If it's an older model (before 1995 or so) the AC may not be a small fix. If it's an R12 system to do it properly you need to switch to R-134a, which necessitates replacing the oil in the system, and possibly requires new hoses, as R12 is no longer readily available.
posted by 6550 at 6:11 PM on July 11, 2010

In your question you don't say what kind of car you're looking at. If it's something interesting or rare, the NADA guide price is less and less relevant. In particular if it is actually in great shape, it may well be worth it to you to pay something that NADA thinks is unreasonable.

The key to all of it is "worth it to you".
posted by desl at 7:27 PM on July 11, 2010

It does not matter when you negotiate. The only thing that matters is that you know your top price you are willing to pay for the car in its best condition and you are willing to walk if he won't be below that. Be prepared to walk. IF he won't budge, tell him that you will be back in town next month to visit the same friends and to let you know if he still has not sold it. That leaves an opening for him to save face and change his mind. The key to any negotiation is to know your top price if you are the buyer (low price if you are the seller) and be prepared to stick to it and walk. Even $1 over. I have written the number on a small piece of paper I am willing to look at occasionally to remind myself and pump myself up to stay firm. Remember it is not binary. It is not either his price or your price. No meeting of the minds is also a likely outcome.
posted by JohnnyGunn at 7:29 PM on July 11, 2010 [1 favorite]