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