Here Is Why You Shouldn’t Expect A Big Discount On A Used Car

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Here Is Why You Shouldn’t Expect A Big Discount On A Used Car

The internet has changed the way cars are bought and sold. It’s now a lot easier to figure out who has the best deal on a new car, but used cars are more complex. A lot of buyers get frustrated when they run into walls asking for large discounts on used cars. Here’s why that happens.

Online pricing comes down to two basic factors: the market price for a given vehicle and how consumers behave when shopping online. Anytime a dealer lists a car for sale, that listing is competing against all the other listings in that region (or beyond) on a similar car with a similar set of parameters. So if a dealer wants to sell that car quickly, they need to price their vehicle within the market range, or they need to post an aggressive price compared to the rest of the field.

Several years ago, experts would’ve told you there was a lot more negotiation room in pre-owned models because there is more profit. While that may have been true, dealers that are placing listings on third-party websites like Autotrader, Cars.com, and CarGurus, can’t really afford to put too much markup on their cars because the price will no longer be competitive with the rest of the field. Of course, if a car is priced way too low compared to the others, that is sometimes a red flag.

Buying a used car can be a little trickier than purchasing a new one. When it comes to used cars…

The problem is that so many folks have been trained to “never pay sticker price” they’ll assume they have to get a certain percentage off the asking price or they didn’t get a good deal. While that may be the case for a new car, it’s not true for pre-owned. I tell folks all the time: if a dealer won’t budge and you have found the cheapest car in the area, that is the deal to take.

Further complicating matters on pre-owned cars are value points: certified cars come with a factory-backed extended warranty, for example. Obviously, a CPO car will command a premium in the market, but how much that premium is worth depends on the car and the buyer. Also, the original sticker price plays a key role in the equation as well.

Finding the best deal on a pre-owned vehicle is way more time consuming than getting the lowest quote on a new car and it has less to do with your ability to haggle and more about skill in analyzing various factors to see which car presents the best value. Here Is Why You Shouldn’t Expect A Big Discount On A Used Car

 

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