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Conventional wisdom says that in all cases, getting a good deal on a used car means negotiating. When you go to buy a used car, the car dealership will usually offer you the best price, in exchange for "negotiating" the price down and having you take the car home that day. Since you are already in a dealership, you usually only have two choices: take the deal or walk.
The number one mistake people make when buying a car is that they don't know what they are buying. Most people buy cars without really knowing what they are doing, so they go to the dealer and get ripped off.
When buying a used car, or any car for that matter, it is important to know your vehicle well. The more you know about your car, the less likely you are to get taken advantage of when buying a used car. It is good to know your car well, so you can negotiate the best deal possible.
The first thing you need to know is the correct price. Most people say that the dealer always gives them the best deal. That may be true sometimes, but you need to know what you are talking about. You also need to know how much a car depreciates each year. The more you know about a car the less likely you are to get taken advantage of.
Second, you need to know the difference between a trade-in and a cash sale. A trade-in is where the dealership takes a car that they have already sold, and makes money off of that car. A cash sale is where you pay the dealership for the car. The difference between a trade-in and cash sale is simply what the dealer is actually making on the car. A dealer will usually give you the most favorable price if you buy a car they are making money on. However, if you pay for the car you are less likely to negotiate a good deal.
Finally, you need to know the financing terms. Every car dealer has a different method of financing. You need to know if you can get financing, what it would cost you, what interest rate you are going to pay, and when your payments will be due.
What to look for
It is a good idea to check out at least three or four different dealerships to find the best deal. The more dealers you go to, the more of them you will see, and the more possible deals you have.
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