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