How to Make the Lowest Reasonable Initial Offer for a Used Vehicle

TLDRLearn how to make the lowest reasonable initial offer for a used vehicle by understanding how dealers price their cars and using reliable resources like Kelley Blue Book. Negotiate based on the trade-in value and the dealer's markup to get the best price.

Key insights

💰Used car dealers aim to make $1,500 to $5,000 in gross profit on each sale.

📉Dealers are willing to decrease the price of a used car to make a reasonable profit.

💸Private sellers can expect to sell their car for its trade-in value or slightly higher.

👍Check websites like CarGurus for listings that have been on the market for a long time, as dealers may be more willing to negotiate the price.

🚘Understanding the condition of the car and its trade-in value is crucial when negotiating a lower price.

Q&A

How much profit do dealers make on used car sales?

—Dealers aim to make $1,500 to $5,000 in gross profit on the sale of a used car.

Can I expect to sell my car for its trade-in value?

—Yes, a private seller can typically sell their car for its trade-in value or slightly higher.

Should I check websites like CarGurus for better deals?

—Yes, CarGurus is a great resource to find listings that have been on the market for a long time, as dealers may be more willing to negotiate the price.

How much lower should I negotiate the price?

—Negotiate based on the trade-in value and the dealer's markup. Aim to get a price that allows the dealer to make a reasonable profit.

How important is understanding the condition of the car?

—Understanding the condition of the car is crucial when negotiating a lower price, as it affects its trade-in value and potential costs for the dealer.

Timestamped Summary

00:00In this video, Manny, a former car salesman, shares his strategies for making the lowest reasonable initial offer for a used vehicle.

02:50Dealers aim to make $1,500 to $5,000 in gross profit on each used car sale.

07:00A private seller can typically sell their car for its trade-in value or slightly higher.

09:14Check websites like CarGurus for listings that have been on the market for a long time, as dealers may be more willing to negotiate.

09:50Negotiate based on the trade-in value and the dealer's markup to determine a reasonable offer.

10:56Understanding the condition of the car is crucial when negotiating a lower price.

Browse more