| There are different prices for different | | | | the results to reflect geographic pricing |
| types of transactions | | | | trends. Click and voila: a precise value that |
| | | | reflects recent sale data. |
| Dealer or Retail price: This is what | | | | |
| customers pay for a used car at a franchised | | | | Continue researching using web tool No. 2: |
| dealer. This is almost always higher than the | | | | Kelley Blue Book. Kelley has a number of |
| price charged by an individual. Dealers mark | | | | different features, including the ability to |
| up for inspecting, reconditioning and for the | | | | compare several cars side-by-side. But you |
| privilege of having you come to their used | | | | still get a specific value for the exact |
| car lot. | | | | model and equipment level you want to buy. |
| | | | |
| Private party: This is what customers pay for | | | | Now, let's compare the numbers to the real |
| a used car when they're buying from an | | | | world. Go to a used car lot and check some |
| individual. There is the most variation in | | | | prices. Choose either a new car dealer or a |
| private party sale prices, because each | | | | general lot that has lots of used cars. Also, |
| seller's situation is unique. | | | | a high-end dealer like Lexus will have other |
| | | | high-end used cars that came in as trade-ins. |
| Trade-in: This is what you can expect a local | | | | Try to get a sense of how much a dealer will |
| dealer to give you for your used car. | | | | take off the price. Sometimes, the prices are |
| Conversely, this is what dealers pay for the | | | | firm. This is a good time to also drive the |
| used cars on their lot that are traded-in by | | | | car you're interested in. |
| customers. It is almost always lower than | | | | |
| what you can get by selling your car yourself | | | | Finally, go back to the classifieds. Notice |
| to a retail buyer. | | | | the differences in prices between dealers and |
| | | | private individuals. Try to adjust both sets |
| How much is a car really worth? It used to be | | | | of prices based on what you've learned. |
| a tough question to answer. Now, there's a | | | | Private sellers and dealers usually ask more |
| variety of web tools and other resources to | | | | than they're willing to accept. |
| help you pinpoint the precise value of a car | | | | |
| you're interested in. Here's how. | | | | Put on your steel-toed work boots: you're |
| | | | ready to start negotiating! |
| Difficulty: Average | | | | |
| | | | Tips: |
| Time Required: 30 minutes | | | | |
| | | | During your first visit to a dealer lot, do |
| Here's How: | | | | not buy a car, no matter how tempting! Be |
| | | | sure you are prepared -- intellectually and |
| Let's start the old-fashioned way. Pick up | | | | psychologically -- for full-bore negotiating |
| your local newspaper or for-sale magazine and | | | | before you sit down with a salesman. |
| start circling cars that interest you. This | | | | |
| gives you a general idea of what's available | | | | It's always a good idea to take a trusted |
| and how much people are asking. Remember to | | | | assistant (friend, spouse, kid) when you're |
| focus on a single make and model at one time | | | | on the dealer lot. |
| (e.g., '99-'02 Toyota Camry). | | | | |
| | | | Kelley Blue Books are available at many |
| Research real values using web tool No. 1: | | | | bookstores and newsstands. They come out |
| Edmunds.com. Enter as much precise | | | | monthly. You might want to buy a copy and |
| information about the car you want to buy, | | | | take it with you when you shop, as you won't |
| including color, mileage, equipment, | | | | have your laptop to rely on. |
| condition. The zip code feature customizes | | | | |