If you've come this far in the transaction, the time has come to talk turkey. We all know money walks so it's negotiating time.
Being well-armed
At this point, you should have an excellent idea of what the car you are interested in is worth, in other words, the market value of the car (the same goes for your trade-in) and a vehicle history report in hand. You can therefore negotiate a fair price with the seller.
As best as you can, try and have basic arguments as to why the price might be too high other than the above mentioned items: visual damage on the car, higher than average mileage (based on your research), condition of tires or interior flaws, etc.
Tips:
- When dealing with a professional, an extended warranty may be offered. Costs are typically high and more often than not, are not worth the asking price. Go to the used car warranty section in the Consumer Info on the APA website.
- You are the boss. The seller wants your money. You owe it to yourself to be in charge of your money. The vehicle for sale in front of you is not unique. There are others like it out there. If you cannot come to an agreement, walk away.
- If you are required to sign a document, regardless of its nature, concerning your potential purchase of the vehicle, make sure that you indicate: "The negotiated price will be subject to change depending on the result of the inspection".
- As well, make sure the document stipulates not only the price but the trade-in amount and any and all other conditions surrounding the sale including any extra fees when dealing with a dealer.
TALKING THE TALK
Negotiating can often be uncomfortable. This feeling must be set aside as you need to work with your interests in mind. The bottom line is that it is up to the buyer to set a price with which they are comfortable.
Trade-in
The dealer or seller is intent on getting the highest possible sum for the vehicle they have on offer. The situation also applies to the buyer should they have a vehicle they are looking to trade in.
By having scoured the internet, looked up similarly equipped vehicles, enquired about trade-in values through the Canadian Black Book's (CBB) website and other sources, you will be well equipped to work out a fair deal.
Other fees
Items such as administration fees, extended warranty costs, trade-in value, and any other sums should be discussed and included in the final price. This is the time to put all purchase related costs in the open in order to avoid nasty surprises once the time to sign the contract arises.
Warranty
The extended warranty can be something that the buyer may consider as an added layer of peace of mind. The most important detail to keep in mind is the source or the company that is issuing the guarantee.
In most cases, a third-party backed warranty is a poor choice. There have been numerous notable court cases against such companies in the recent past. A guarantee issued by the maker or brand of the car is the only one that should be considered.
Near-final price
Once the conditional price is set, make sure that any and all documents you sign make some form of reference to the following: "The negotiated price is subject to change depending on the result of the inspection".
At no time should you feel pressured into anything. As the buyer, you are in control. As a seller, especially a professional, they are present in order to answer questions. You are in charge.
Scenario
Well equipped and versed in the goings on with this specific Audi Q7, the Johnsons contact the dealer to proceed with the next steps.
Once back at the dealership, they settle on a price very similar to the asking price. The Johnsons manage to include the cost of the extended Audi backed warranty and other fees.
At their request, they get the total price with taxes included. Following this information, they enquire about financing through the dealer. On screen and with the discussed numbers, the salesperson works out the monthly payments over a specific period of months.
These amount are noted on a sales contract on which the note "The negotiated price will be subject to change depending on the result of the inspection" is added. As well, adding financing details such as interest rate, duration of the loan and other related particulars can be useful.
All that remains is the inspection.
