Negotiating every detail when buying a used car

This article has some great advice on negotiating the purchase price when buying a used car. The key is to look at every aspect of your cost, starting with price but then moving on to all the fees they have listed, and then asking for perks and possibly using your own bank to finance the car (tell them this last!).

Here’s some detail:

When I sat down in the financing office to discuss the financing of the vehicle, I took the itemized listing of fees and made the loan processor define every single item that was listed. There were so many fees that were “administrative” in nature it would make your head spin. I argued every single cost that was listed that wasn’t tax, tag or title related. The dealer was assessing me a whopping $600 in unnecessary administrative costs. I know that this seems very small when financing a $30,000 car, but would you carry $600 in unnecessary interest on your credit card for five years?

The key is that every dollar matters. People don’t think about this when they can finance the purchase, but they’re leaving money on the table.


Used car prices keep going up

If you’re looking for a used car like the 2009 Pontiac G8 GT pictured above and were hoping for a deal, you might be in for an unpleasant surprise. Used car prices hit a record high in April, as inventories are tight in the new car market and wholesale used-vehicle prices keep increasing. The domestic auto business is doing very well as evidenced by good news from auto retailers like AutoNation, so prices are going up all across the board.


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