If you do your homework on features, what you want in a vehicle, and know your budget, you will be able to negotiate with the dealer towards your preferred price. At Brickell Honda, we have many used Honda Civics, Accords, and SUVs in our inventory. For the person looking for a great deal on a vehicle, you will find an option that you like. In fact, you will often find great features in premium used trims for less than the standard current model. Let's take a look at how to negotiate with the dealer when you are purchasing a used car.
Dealers usually have more negotiating room on used vehicles. Dealerships may acquire used vehicles as trade-ins when customers purchase new vehicles, through auctions, the wholesale market, private sellers, or from inventory. This is why there is typically more leverage when negotiating price on a used vehicle. A dealer doesn't have as much negotiating power on a new vehicle's MSRP because of the predetermined invoice price from the manufacturer.
Before going into the dealership, make sure that you know the features that you want. AutoPacific made a list of features that people expect when they are purchasing a vehicle. The top ten "must have" features in a vehicle included:
Many of these features are only available in premium trims on older model years. For example, if you want lane-departure warning, and you are purchasing an older Honda Pilot, such as a 2018, you won't find that feature on the Pilot LX. Knowing what features you want will help your dealer find the trim that is right for you.
Decide on the highest amount you are willing to pay for the car. This can help you avoid overspending during the negotiation process. If you arrive at a price range with a low end and a high end, this will help you when you are working with your salesperson. Consulting with a source like Kelley Blue Book will help you know the price of a model that you are looking at. If the dealer is offering a sticker price of $22,000 and the KBB value is $19,000, coming in at a slightly lower price will let you know how much the dealer is willing to move on the price.
Honda Certified vehicles go through a rigorous 182-point inspection process to ensure that they meet Honda's high standards for quality and reliability, come with an extended warranty that covers major systems and components for up to 7 years or 100,000 miles, and are often priced competitively compared to other used vehicles. You will ultimately pay a little bit more for a used car through any sort of pre-certified program, but there is some room for price negotiation.
Getting prequalified is always a good idea when you go to visit the dealership. Pre-qualification gives you a better understanding of the amount of loan you can afford, which can help you negotiate a better price for the car. This can also help you avoid overspending or being sold a car you can't afford. It can speed up the buying process as you will already have a loan approved, and you'll know exactly what you can afford. By getting pre-qualified, you may also be able to secure more favorable financing terms, such as a lower interest rate, which can help you save money over the life of the loan.
Trading in a vehicle also has some benefits if you want to negotiate on the price of a used car. The trade-in value of your old car can be applied towards the purchase price of the new car, reducing the amount you have to pay out of pocket.
Making a 20% down payment can also help you get a lower monthly payment when you are negotiating on your used car purchase. A larger down payment can lower the amount you need to finance, resulting in smaller monthly payments. You will also reduce the amount you need to borrow, which can result in lower interest charges over the life of the loan. Making a substantial down payment can also give you more bargaining power when negotiating the price of the used vehicle.
With Brickell Honda, you get a lot of options with a great pre-owned inventory to choose from. Come visit our professional team, find a price on a vehicle that is perfect for you, and find great financing options. We also have a Fast Pass program that makes the buying experience fast and convenient. This program includes 100% online shopping, no-haggle pricing, and a 3-day or 100 mile satisfaction guarantees. As a reputable local Honda dealer, we have resources for buyers to make sure they get the option that they want. We will help you find the right trim and model year and want you to find the perfect vehicle.