how to buy a used vehicle from a dealer?
October 27, 2024 6:28 AM Subscribe
How can I get the best deal on a car I am interested in? What processes should I follow or do to make this go well?
I've had decent luck purchasing vehicles but never went the dealer route. Now, I'm considering buying a used car. I see there are trade-in three-year-old leased vehicles at dealers and rental agencies selling their stock.
A friend showed me how to take the VIN of a vehicle for sale, plug it into Kelly Blue Book, and see its average trade-in value. Then, you can start negotiating with a dealer based on that rather than on the price the dealer offers. That's an excellent tip for me on how to buy from a dealer.
When I look at the big picture of a vehicle purchase, there are many unknowns, from research to sellers to buying. What processes do you follow to get a quality vehicle at the best price? Do you follow manufacturer advisories? Warranties? Consumer reviews? How can I follow a process or set of processes that helps me during research to buying?
For the record, I'm interested in EVs and have been looking at the Honda Niro EV as a cost-effective vehicle for my needs. I am located in Oregon.
I've had decent luck purchasing vehicles but never went the dealer route. Now, I'm considering buying a used car. I see there are trade-in three-year-old leased vehicles at dealers and rental agencies selling their stock.
A friend showed me how to take the VIN of a vehicle for sale, plug it into Kelly Blue Book, and see its average trade-in value. Then, you can start negotiating with a dealer based on that rather than on the price the dealer offers. That's an excellent tip for me on how to buy from a dealer.
When I look at the big picture of a vehicle purchase, there are many unknowns, from research to sellers to buying. What processes do you follow to get a quality vehicle at the best price? Do you follow manufacturer advisories? Warranties? Consumer reviews? How can I follow a process or set of processes that helps me during research to buying?
For the record, I'm interested in EVs and have been looking at the Honda Niro EV as a cost-effective vehicle for my needs. I am located in Oregon.
I recently went through the process of buying a new car, and in that process, I messaged a lot of dealers. Ultimately I ended up buying from a private seller. However, I noticed one thing that dealers did that you might want to prepare for.
I would ask the dealer --- through its website form --- about the Niro, for example, and see if they would sell for $20,000 when the asking price was $23,000. Someone, let's say his name is Jim, would respond with boilerplate about how the car is still available. I'd respond to his boilerplate with a polite second ask about my price request, and he would respond with No, My Manager Says We Can Only Do $22,500.
I'd tell Jim thank you and wait a week.
Then a different person from the dealership, Sue, would email me unsolicited with an email titled "Did I Miss You?" or "Let's Talk Again Soon." This email's content is again non-specific information, usually unrelated to the car I'd asked about already.
I'd tell Sue about my experience with Jim and ask if they could come down on the $22,500 he quoted. She would speak to her manager and say No, We Can Only Do $21,950. I would say thank you.
I'd wait another week and receive another unsolicited email from another salesperson. I'd respond in a similar manner.
You get the idea. Eventually, I made headway toward the price I was after.
The communication was haphazard and frustrating, but after a while I did see their prices reduce. The longer the car sits on the lot, the more they realize I'm willing to wait for the right price... All those and more factors seem to contribute to their bending the rules a little.
Answer those weird emails like "Did I Miss You?" Then work with different people in the dealership to get what you want. It only takes a few minutes of your time, and you might end up having one or more allies to get the car you're after at a price that's right.
posted by mr_bovis at 8:04 AM on October 27, 2024 [2 favorites]
I would ask the dealer --- through its website form --- about the Niro, for example, and see if they would sell for $20,000 when the asking price was $23,000. Someone, let's say his name is Jim, would respond with boilerplate about how the car is still available. I'd respond to his boilerplate with a polite second ask about my price request, and he would respond with No, My Manager Says We Can Only Do $22,500.
I'd tell Jim thank you and wait a week.
Then a different person from the dealership, Sue, would email me unsolicited with an email titled "Did I Miss You?" or "Let's Talk Again Soon." This email's content is again non-specific information, usually unrelated to the car I'd asked about already.
I'd tell Sue about my experience with Jim and ask if they could come down on the $22,500 he quoted. She would speak to her manager and say No, We Can Only Do $21,950. I would say thank you.
I'd wait another week and receive another unsolicited email from another salesperson. I'd respond in a similar manner.
You get the idea. Eventually, I made headway toward the price I was after.
The communication was haphazard and frustrating, but after a while I did see their prices reduce. The longer the car sits on the lot, the more they realize I'm willing to wait for the right price... All those and more factors seem to contribute to their bending the rules a little.
Answer those weird emails like "Did I Miss You?" Then work with different people in the dealership to get what you want. It only takes a few minutes of your time, and you might end up having one or more allies to get the car you're after at a price that's right.
posted by mr_bovis at 8:04 AM on October 27, 2024 [2 favorites]
If you are trading in your current car, don't mention that until after you get what you think is the best price your are going to get.
posted by falsedmitri at 8:40 AM on October 27, 2024 [2 favorites]
posted by falsedmitri at 8:40 AM on October 27, 2024 [2 favorites]
Our mechanic suggested that if buying from a dealer, to only get "certified" cars which means the dealer is providing a warranty.
These will cost more, but he had numerous experiences where the dealer takes a trade in and does minimal repairs, just enough to make a car drivable and then sells it to a customer, who then discovers all kinds of defects. In California, at least, there is apparently no grace period where you can change your mind and return the used car.
If the used car is offered as certified, the dealer knows they'll be on the hook for repairs, and therefore takes more care to ensure the car won't fall apart during the warranty period, at least.
posted by jasper411 at 9:34 AM on October 27, 2024 [3 favorites]
These will cost more, but he had numerous experiences where the dealer takes a trade in and does minimal repairs, just enough to make a car drivable and then sells it to a customer, who then discovers all kinds of defects. In California, at least, there is apparently no grace period where you can change your mind and return the used car.
If the used car is offered as certified, the dealer knows they'll be on the hook for repairs, and therefore takes more care to ensure the car won't fall apart during the warranty period, at least.
posted by jasper411 at 9:34 AM on October 27, 2024 [3 favorites]
You probably know this, but note that all used EVs (under $25k price) qualify for a $4000 federal credit, and it applies at the point of sale, meaning they will simply knock $k off the price, and there's no tax filing paperwork needed from you. This article from 2023 (when it first kicked in) summarizes that credit for used EVs.
posted by intermod at 8:39 PM on October 27, 2024 [1 favorite]
posted by intermod at 8:39 PM on October 27, 2024 [1 favorite]
A few tips:
Look on your banks/credit unions website to see their used car loan rates are. Likely, the auto dealer can beat these rates. But, you may need to negotiate with your own bank/credit union rate. Like, if the bank is 5%, and the dealer is 5%, they could go to 4.75%. Money is money!
Second, many dealers will still try to get you to sign for a bunch of add ons. Things like pre-pay for 2 years of oil changes (it's barely a discount) or an extended warranty stuff, or fabric protection or something. Just say no to ALL of it.
Before you are sure about buying is the best time to negotiate for little things. Heavy duty floor mats, cargo cover, or detailing are all things you can negotiate about.
I've found with used cars it's actually a little hard to negotiate on price. All used cars have different prices and qualities so they know it's not a straight trade to someone else. The real option is to look on facebook marketplace for FSBO cars - which can save you a lot of money.
And last, I've found that dealers often give you less than half of the value of your trade in. Like, if your trade in would be $10K on facebook marketplace, they might give you $5K. That's worth a few weeks of posting and meeting with strangers in my book. Dealers don't really have an incentive to give you more for it, and they try to make it part of the negotiation. I'd just pre-plan to sell your trade in on your own.
posted by bbqturtle at 6:00 AM on October 28, 2024
Look on your banks/credit unions website to see their used car loan rates are. Likely, the auto dealer can beat these rates. But, you may need to negotiate with your own bank/credit union rate. Like, if the bank is 5%, and the dealer is 5%, they could go to 4.75%. Money is money!
Second, many dealers will still try to get you to sign for a bunch of add ons. Things like pre-pay for 2 years of oil changes (it's barely a discount) or an extended warranty stuff, or fabric protection or something. Just say no to ALL of it.
Before you are sure about buying is the best time to negotiate for little things. Heavy duty floor mats, cargo cover, or detailing are all things you can negotiate about.
I've found with used cars it's actually a little hard to negotiate on price. All used cars have different prices and qualities so they know it's not a straight trade to someone else. The real option is to look on facebook marketplace for FSBO cars - which can save you a lot of money.
And last, I've found that dealers often give you less than half of the value of your trade in. Like, if your trade in would be $10K on facebook marketplace, they might give you $5K. That's worth a few weeks of posting and meeting with strangers in my book. Dealers don't really have an incentive to give you more for it, and they try to make it part of the negotiation. I'd just pre-plan to sell your trade in on your own.
posted by bbqturtle at 6:00 AM on October 28, 2024
With respect to battery EVs generally, the battery health of a used car can vary greatly based on where and how the car was stored, and whether it was routinely charged above 90 percent or at a level 3 charger (sometimes called a "super charger" or a "fast charger"). Fleet cars are more often charged to 100% than privately-owned EVs due to customers not understanding the nuances of charging, and that will speed up the battery degradation. So I'd be conscious of that and try to learn what you can. You can learn on some in-car info menus or you could use an OBD scanner and an app (both relatively cheap considering the expense of a car).
For trade-in pricing, I took my car to CarMax and got a quote. The process is low stress, it takes only an hour or so, the offer is good for seven days, and they give it to you in writing. Then when the dealer inevitably gave me a low-ball offer for the trade in, I gave them the CarMax quote and asked them to match.
For finding a "good" car among the various similar ones offered, you can use carfax.com to search used inventory and sort by 1-owner and/or no accident reported listings. Whatever you find on the site typically allows you to click through and see the whole CarFax, which includes service history too. That gives you a good indication of whether the prior owner put love and attention into the car. We just bought a used car for our kids with this method, and while we paid a little bit more for the car we could see that it was meticulously maintained at the same auto shop through its life.
Good luck!
posted by AgentRocket at 7:40 AM on October 28, 2024
For trade-in pricing, I took my car to CarMax and got a quote. The process is low stress, it takes only an hour or so, the offer is good for seven days, and they give it to you in writing. Then when the dealer inevitably gave me a low-ball offer for the trade in, I gave them the CarMax quote and asked them to match.
For finding a "good" car among the various similar ones offered, you can use carfax.com to search used inventory and sort by 1-owner and/or no accident reported listings. Whatever you find on the site typically allows you to click through and see the whole CarFax, which includes service history too. That gives you a good indication of whether the prior owner put love and attention into the car. We just bought a used car for our kids with this method, and while we paid a little bit more for the car we could see that it was meticulously maintained at the same auto shop through its life.
Good luck!
posted by AgentRocket at 7:40 AM on October 28, 2024
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posted by minsies at 6:37 AM on October 27, 2024