Bargaining power on a 2nd hand car?

mullmick

Hi all: I am hoping for some advice.

I am planning on changing cars in the next month or so, and have been looking particularly at a 2nd hand Toyota Corolla Verso. I want this car to last at least for the next 5-7 years for our family, so am looking at 2006 models at present.

In dealerships, these tend to be priced at around 19-22k. However, I dont have much experience in "form" at dealerships, and given the current market for car sales, am wondering is now a good time to get a good negotiated price.

So, my questions:
I assume that the "ticket price" is somewhat up for negotiation- what should I aim for in terms of % off the ticket price
I have a 00 Peugout 106 which we will be looking to get rid of- how will that affect any deal?
I wont be using a finance deal, so can pay cash? Again, how would that affect any negotiated price?

Any advice you can provide would be greatly appreciated. Thanks.

zzzzzzzz

mullmick wrote: »

Hi all: I am hoping for some advice.

I am planning on changing cars in the next month or so, and have been looking particularly at a 2nd hand Toyota Corolla Verso. I want this car to last at least for the next 5-7 years for our family, so am looking at 2006 models at present.

In dealerships, these tend to be priced at around 19-22k. However, I dont have much experience in "form" at dealerships, and given the current market for car sales, am wondering is now a good time to get a good negotiated price.

So, my questions:
I assume that the "ticket price" is somewhat up for negotiation- what should I aim for in terms of % off the ticket price
I have a 00 Peugout 106 which we will be looking to get rid of- how will that affect any deal?
I wont be using a finance deal, so can pay cash? Again, how would that affect any negotiated price?

Any advice you can provide would be greatly appreciated. Thanks.

It's a great time to buy a car. With the current economic climate nothing's moving.

Offer 75% of the list price on the car and see how you get on from there. Basically - if you don't ask you won't get. That's my opinion anyway

Personally, I'd buy the car as a straight deal from the dealer. I don't think they'd really be interested in taking the 00 Peugeot off you (I'm sure they will, they just won't give you much for it) and a straight deal is a bargaining chip on your side.

Putt the Peugeot up on carzone and see what you get for it.

Is the dealer you're going to a Toyota Main Dealer? If not then I wouldn't bother... I'd go private sale. You'll save a fortune for a bit of extra legwork.

Alanstrainor

The pug would be next to worthless, might be better of selling private, just undercut the prices on carzone, and put an ad in the local paper too.

Henry Ford III

The art of negotiation. Books have been written about this.

For simplicity:

1/. Ask about the car. Say Sticker price is €20k. Ask "how much for cash?" I'd expect maybe €18k.

2/. Then introduce your trade in. See how much the €18k figure reduces.

3/. Introduce competition. "I got a lower cost to change figure (don't say where or how much lower). "I saw a better/cleaner/lower mileage Verso for the same money".

You must know in advance exactly what the new car is worth (might not be €20k) and also the real value of your trade in. Aim to pay the difference or maybe slightly less.

Keep the dealer interested, but don't be silly either.

mullmick

Many thanks for the great advice.

Biro

A lot of dealers aren't taking trade ins at the moment, they're over stocked. Your 206 will be a deal breaker. Get a straight deal bargained. Then you could ask about trading the 206, but I'd say they'll give you even less than you'd get if you undercut the next cheapest on carzone by a grand.

Alanstrainor

Yeah, and to make things worse...it's a 106!

fricatus

Just wondering: would it make any sense to get the new car, but then just hold onto the 106 until it absolutely dies?

The advantage that I see would be that you'd have the newer car for family use and you'd keep the mileage down on it by using the old car for single-person running about.

You'd take the hit on tax and insurance, but would it be worth looking into? Two cars offer great convenience to a family, and if you're holding onto it because there's no trade-in value, then it's sort of like getting it for free...

mullmick

thanks again on this. I hadnt thought of keeping our old 106, and its definitely something to consider. If not for us, might try the private sale route. I realise the 106 is basically worthless to a dealership, but if priced right, it would be a good car for a student, or someone to learn to drive in...

thanks again for your advice

Cosmo K

Yeah, and to make things worse...it's a 106!

Nothing worong with a 106. Nice little car, and small cars are way easier to sell. Even if times are bad, you'll always sell someting small, cheap and cheerful.