KEY POINTS:
When it comes to buying a used car there are two basic negotiating styles. You can either be fair and decent, or unfair and obnoxious. We've all experienced a used car dealer who believes he's always right. But it's also true that many sellers respond extremely well to honesty and decency.
You've finally found a car that's right for you and you've done all the safety checks and taken it for a test drive. Now it's time for the final negotiations. Do not discount the importance of charm, relaxed body language and a civilised tone of voice.
Prepare yourself by deciding the absolute top price you're willing to pay for the car. The basic formula: the seller's asking price, minus the agreed deductions for repair costs, and so on.
Begin by declaring your intention to buy the car, subject to a nominal adjustment for necessary repairs.
If these repairs are minor, immediately offer to split the difference for the repair costs and call it even. If, however, critical repairs run into the high hundreds to thousands of dollars, you have an opportunity ahead of you.
In this case, it's often helpful to have a copy of the used car's inspection report to show the seller to ensure you're telling the truth about any repair costs.
At first, the seller (and possibly you) may be shocked by the numbers involved. This can be especially true with older vehicles and luxury cars.
However, with a little constructive conversation, even the most alarming repair costs needn't kill the possibility of an amicable agreement.
It's a good idea to start negotiations by giving the seller an opportunity to suggest a fair and amicable solution to resolve any repair costs.
Worst case, the seller will not budge on the price of the car. If so, leave. Best case, the seller agrees to simply lop-off the total bill from the asking price.
If that happens, it's time to shake hands and do the deal.
Some sellers offer to reduce the asking price by a very low number, figuring you're there to haggle (hoping you won't). Provided the asking price, minus 50 per cent of the repair costs, is acceptable, again offer to split the difference. If that doesn't work for either or both of you, it's time to go through the inspection report and the probable costs of repair, line by line.
Keep in mind some items are your financial responsibility. Unless it involves a major repair (timing belt, water pump, adjusting the valves, and so on), upcoming maintenance regimens are always down to you. In particular, oil changes, tune-ups and unnecessary replacement of filters should be removed from your list.
By doing this at the outset, you're showing goodwill and fairness.
If the seller claims the cost of repair listed in your inspection is too high, ask them if they know another mechanic willing to do it for less, and the type of guarantee they will offer.
There have been cases where $450 repairs with 30-day guarantees turn into $200 repairs with a full-year guarantee. If the car is worth it, it pays to explore alternatives that will benefit both of you. It may take research and patience, but it can be done.
Finally, if you have experience repairing minor automotive issues, use that skill to create some wiggle room to help to close the deal.
If you can come to a mutual understanding, congratulations. If not, don't beat a dead horse. Back out by thanking the seller for their time, leaving a copy of the inspection report as a "gift" and telling them your final price, should they reconsider.
Above all, don't sweat it. There are plenty of excellent used cars out there looking for a good home.
Research carefully, test drive at length, let a mechanic or AA inspection figure out the unknowns, and negotiate in good faith.
Do this and you'll save unnecessary test drives and thousands of dollars in future repair costs. You'll also buy the cream of the automotive crop at a fair price.
