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Tips for haggling?

Going to see someone about a car tonight... he's asking over $2K more than Blue Book, but also just put a ton of work into it. What's the etiquette here? Is it reasonable to expect him to take Blue Book price, or should I be prepared to pay a bit more? I can afford somewhere near his asking price (he did say OBO) but I'm not trying to get ripped off. Thoughts?

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  • Gold-head_small
    Reputation: 5943

    I'm a terrible haggler, but I can tell you this: it doesn't matter in the slightest how much money he's put into the car. A car with a new engine in it is not worth more than a car with an original engine IN THE SAME CONDITION. Condition is everything, and blue book reflects that. Note also that even if the new whatevers are really new, the rest of the car isn't; and things like suspension and electrics so on wear out just as much as the other parts -- so the car still has X miles on it even if some parts are new.

    Actually, I'd be wary of any car that had major items replaced (engine, tranny), simply because you don't know how well those items were installed or why. If it's basics like new tires, battery, belts, and so on, or even bolt-ons like carb or pumps, then that's OK -- but again, new parts like those don't make it worth more than blue book. If it's a big thing, I'd want to make sure it runs and steers perfectly. There are a lot of rather dubious backyard mechanics out there. Have a real mechanic check it out for sure.

    If it's body parts that he's put money into, also beware -- the usual reason for this is CRASH, which means hidden damage (bent frame, etc.)

    If it's any kind of classic, the rules are a little different, because a certain amount of restoration work is understood, and the blue book isn't about classics.

    Have you searched car sites for similar vehicles? Look on Ebay Motors, too. Anything to give you an idea of real-world prices.

    Blue book hints: make sure you're looking at the "private party" value. Don't let him try to get away with the "retail", which is what you'd pay from a professional used car dealer. Look at how the price changes depending on various options, and condition. Note that "excellent" (which is rare) is not THAT much more than "good" in most cases.

    Basically, I'd start negotiations by saying you're going to go by the blue book private party value and let him try to talk you out of it. Don't go a lot higher than that, and absolutely be prepared to walk away. Don't you DARE get into last-second Ebay mode where you HAVE to have it and go over your bid! That's cool when you're talking about a $10 item you bid $12 for, but not a $10,000 item you pay $12,000 for (or whatever it is).

    I say this theoretically, knowing that in the real world, if it was me, I would end up paying a thousand bucks more than he started with, and not notice the white smoke, leaking transmission fluid, and brakes that are about to fail ten blocks from here.

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5 Other Answers

  • Hs-2005-37-a-1024_wallpaper_small
    Reputation: 146

    The best advice is to be willing to walk away if he doesn't come closer to what you want. Also start lower than you want to end up. Those who put work into cars are never going to be able to recoup those costs at resale.

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  • Ozomahtli_small
    Reputation: 2393

    What Fnarf said, but, my opinion is a bit stronger than his on the price ... Don't go a penny over the private party value KBB value. It's a buyer's market out there. You don't need to give a reason, other than that is the documented and accepted value of the car, and it's a fair price.

    Regarding repair work, if he had to dump a bunch of money into it, then that was likely to get the car in good enough condition to bring it UP TO the blue book value. No amount of work will bring a car OVER its blue book value.

    I also agree with Fnarf about major repairs, like a new engine or body work. Run away immediately. Ditto on any after market crap like fancy rims or exhaust systems. Much to the chagrin of people who "invest" in such things, after market parts do not add value to a car. In fact, the opposite is usually true.

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  • Mike_hall_08_small
    Reputation: 408

    It can be helpful if you have somebody to go with you who has a stake in keeping you from getting ripped off or who can pose as such a person - boyfriend, brother, dad, whatever. And yes, I think gender can be a factor, here, although I'm sure you could find women who would serve just fine.

    Sometimes just having somebody standing there scowling silently during the negotiation can be a benefit. If he's really trying to convince you to take an unfair price, he has to divide his efforts between the two of you. I've been the silent scowler in dealerships before, and I've brought the silent scowler, and for both me and my girlfriends it gave the real buyer a break from the salesman's constant barrage of bullshit so he or she could think realistically about the terms while the salesman focused on the other person.

    The key to this is letting the seller think the other person has a stake in the purchase or veto power or something.

    It's a bit of an aggressive tactic, but it's only useful when the seller is trying to pull the wool over your eyes. When the seller is selling a good product at a fair price, he doesn't have to do a lot of selling so being outnumbered doesn't put him at a disadvantage. It's also nice to have backup and/or a sounding board if you're the kind of person who gets nervous during negotiations or doesn't like making decisions on the spot.

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  • Skull_pumpkin_small
    Reputation: 1610

    Walk in there with your research in hand, showing value estimates from a variety of sites (Edmonds, Kelly's, etc). (Value is not just estimated on car age, so if he's put quality work into it then that's taken into account.) I don't suggest walking throuhg each estimate with him, just making the point that you aren't walking in cold and can back up your reasoning. Make sure that you are looking at the estimates for private party transactions, which will be better (for him) than a trade-in.

    Don't be nasty, but be firm. Be prepared to walk if he asks for more than you are willing to pay based on your research.

    If you're not comfortable being firm, you may want to bring a friend with you who can take that role.

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  • Sho_small
    Reputation: 1213

    What constitutes "a ton of work"? Did he put a lot of aftermarket parts on it (i.e. a cold air intake, "premium" sound system, etc.) or did he rebuild something important, like the engine or the transmission? Did he take a non-running car and repair it so that it's running now? Aftermarket mods tend not to add value to a car, since people will do insane things to get their bling of choice to fit on their vehicle...things that will require a mechanic's attention sooner rather than later. That said, some additions might be considered valuable, like a nice color-matched canopy added to a pickup truck. If the modifications are things you would want to buy/add anyway, than those things may have value to you.

    Instead, if car owner guy rebuilt something that the car cannot run without, than I'd take that with a huge grain of salt. Yes, a rebuilt or replacement engine can extend the life of the vehicle, but how well was that repair done in the first place? Ask him where all the repairs and maintenance work have been done. If he's done it himself, get your own mechanic out there to inspect the car (really, do that anyway - shop work does not always equal quality work). Be prepared to walk away from the sale.

    As for KBB value, those values tend to be based on original parts with regularly scheduled maintenance performed. Rebuilt engines do not qualify as regularly scheduled maintenance. If anything, repairs like that should decrease the value of the car, especially if the replacement engine is not to factory spec (i.e. a project car).

    If car owner guy has instead repainted the car or some other cosmetic thing, that may have value to you as well. Then again, maybe he refurbished the paint to cover up that accident he never reported.

    Bottom line, go with the commercial private-party estimates that you've found for the car. Start negotiating below those numbers, especially if there has been an extensive amount of work done on the vehicle. Oh, another thing: certain vehicles tend to cost more in the Pacific Northwest. You don't have to pay the markup just because someone stuck that number in their Craigslist ad. Start bargaining at a reasonably low number, and see if he'll work with you. If he won't, there are plenty of people who will.

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