Are Used Car Dealers Negotiable?

When it comes to purchasing a used car in Frankston, one of the most frequently asked questions by potential buyers is, “Can you negotiate with used car dealers?” The short answer is yes, but factors like limited new car inventory and increased demand have pushed up used car prices, making negotiations more challenging.

With the right approach and preparation, buyers can still negotiate and secure a better deal. In this guide, we will explore effective strategies to help you negotiate with Frankston used car dealerships and understand where you might have more flexibility.

Why Used Car Prices Are Often Negotiable

While new cars tend to have set prices, used car prices are generally more flexible. Factors that can give you more confidence when negotiating with a dealer include:

Profit Margins

Used car dealers often have more flexibility in pricing because they acquire vehicles through trade-ins or auctions at lower costs, leaving room for negotiation. Unlike new cars, second hand cars in Frankston don’t have strict manufacturer pricing, allowing dealers to adjust prices based on their profit margins.

Competition Among Dealers

With multiple dealerships offering a range of used vehicles, competition can drive dealers to lower prices or offer incentives to secure your business. If you research other Frankston used car dealerships and are shopping around, a dealer might be willing to negotiate to prevent you from going to a competitor.

The Condition, Mileage, and Demand for a Used Car

Cars with higher mileage, cosmetic issues, or lower demand are usually more negotiable when purchasing a used car. Dealers are often more eager to move these vehicles, while highly sought-after models in great condition might offer less room for price adjustments.

When Is It Harder to Negotiate?

While used car dealers in Frankston are often negotiable, certain situations make it more difficult to secure a lower price. Certified Pre-Owned (CPO) cars, for example, are inspected and certified by the manufacturer, often coming with warranties and other benefits. Because of the added value and manufacturer-set pricing, there’s usually less room to negotiate on these vehicles.

Similarly, newer models that are still under factory warranty tend to have higher resale values, leaving less flexibility in pricing. These cars are considered nearly-new and priced closer to their original retail value. Additionally, in high-demand markets, dealers are less likely to lower prices, as they know these vehicles will sell quickly without needing to offer discounts.

Strategies for Negotiating a Better Deal

• Do Your Research: Compare prices from multiple dealers and online sources to get a clear understanding of the current market value of the vehicle you want.
• Be Ready to Walk Away: Showing the dealer that you’re willing to leave if the deal isn’t right, can increase the likelihood of them offering a better price to keep your business.
• Focus on Total Cost: Negotiate for a lower out-the-door price, which includes fees, taxes, and add-ons. By not just focussing on the sticker price you ensure that you’re getting the best deal overall.
• Time Your Purchase: Consider strategic purchase times, when dealers may be more willing to negotiate to meet sales targets to hit their quotas. To understand when this might be, explore our What Is the Cheapest Month to Buy a Car? guide.

What Else Can You Negotiate Besides Price?

When negotiating with used car dealers in Frankston, remember that price isn’t the only thing on the table. There are often other bonuses that you can receive during negotiation, including:

• Freebies: Request extras like a roadworthy certificate, an extra set of keys, or an extended warranty if the price is firm.
• Trade-in Value: Negotiate your current car’s trade-in value, to reduce the overall cost of your purchase.
• Financing Options: If the dealer offers financing, try to secure better terms, such as a lower interest rate or more favourable loan conditions.

Negotiation Pitfalls to Avoid

When negotiating with a used car dealer, avoid common mistakes that can cost you. Dealers may offer attractive low monthly payments, but this can often lead to paying more in the long run due to extended loan terms and higher interest rates. Always focus on the total cost of the car, including interest, fees, and taxes.

Don’t get sidetracked by perks like “free servicing” or other extras, which don’t reduce the actual price. Negotiate the best price first before considering any add-ons. Finally, don’t let the dealer rush you. Take your time to review the terms and ensure you’re comfortable with the deal before moving forward.

Should You Buy at the Dealer’s Asking Price?

Now that you understand the ins and outs of negotiation, you might be asking if there are times when it’s best to pay the dealer’s asking price. In certain situations, the answer is yes.

For highly sought-after models or cars in excellent condition with low mileage, the asking price may already reflect fair market value, and there may be little room to negotiate. If the vehicle is in high demand, waiting for a better deal could mean missing out. Additionally, if your research shows the price is reasonable and fits your budget, paying the listed price might be the right choice, especially if it’s the perfect match for your needs.

You Can Often Negotiate, But Be Prepared

Negotiating with used car dealers is often possible, but success comes from being well-informed and confident. Doing your research, understanding the market, and knowing the value of the car you’re interested in are all critical to securing a better deal. Not to mention, patience and preparation will also be your greatest assets in the negotiation process. Now that you’re ready to start your search, check out our Used Car Dealers Near Me guide to find your closest dealership and start negotiating today.