Quick Answer: What Price Guide Do Dealers Use?

How do you beat a car salesman at his own game?

10 Negotiating Tips to Beat Salesmen at Their Own GameLearn dealer buzzwords.

This year’s car at last year’s price.

Working trade-ins and rebates.

Avoid bogus fees.

Use precise figures.

Keep salesmen in the dark on financing.

Use home-field advantage.

The monthly payment trap.More items…•.

What site do car dealers use for trade in value?

NADA Values. Used Car Values. Car Book Values. NADA Values, auction data for lenders & dealers, as well as insurance, government and other automotive professionals.

How much can you typically negotiate on a used car?

If you’ve discovered that the used TMV for that car is actually $12,000 (dealer retail), you can start by offering a bit under TMV: say, $11,700. Don’t worry if the salesman acts insulted; it’s just part of the negotiation process. Starting lower leaves you some wiggle room to negotiate.

How do I talk to a car dealer for the first time?

10 Things First-Time Car Buyers Need to KnowKnow Your Budget.Do Your Research.Explore Your Financing and Purchasing Options.Improve Your Credit Score.Save for a Down Payment.Consider Buying Used.Get the Car Inspected.Negotiate the Price.More items…•

What is the most accurate used car value guide?

Kelley Blue Book and Edmunds are two of the most well known used car pricing guides in the United States. There is also another: NADA—but, NADA is usually used by banks or car dealers to show you an inflated price value.

How accurate is KBB pricing?

Is Kelly Blue Book accurate? The short answer is no. Let me explain what goes into these price guidelines. Dealers use Kelly Blue Book to establish the value of trade-ins as well as comparing numbers to set their lot prices.

Who uses NADA pricing guide?

NADA has been around for over 80 years and is the premier valuation guide in the used vehicle industry. Customers include, but are not limited to: dealers, wholesalers, rental car companies, insurance companies, lending institutions, OEMs, government agencies, as well as individual consumers.

What is the best way to negotiate a car price?

Let’s dive into some car negotiating tips that will help you drive home grinning from ear to ear.Do Your Research. … Find Several Options to Choose From. … Don’t Shop in a Hurry. … Use Your “Walk-Away Power” … Understand the Power of Cash. … Don’t Say Too Much. … Ask the Seller to Sweeten the Deal. … Don’t Forget Car Insurance Costs.

What should you not say to a car salesman?

10 Things You Should Never Say to a Car Salesman“I really love this car”“I don’t know that much about cars”“My trade-in is outside”“I don’t want to get taken to the cleaners”“My credit isn’t that good”“I’m paying cash”“I need to buy a car today”“I need a monthly payment under $350”More items…•

Why you should never pay cash for a car?

The common thinking is that buying a car with cash is better than financing because you won’t have to pay interest. … In that case, paying with cash may not be the smartest thing to do because you’ll lose very little money by financing; you get to keep your cash for other projects or investments.

Do dealers go by Kelley Blue Book?

Car dealers use Kelley Blue Book used vehicle pricing information to set used car prices and values. … The different prices provided in the Blue Book can be used by a dealer as a negotiating tool to get you to pay more for a car, or it can be used by you to get a lower price.

How much will a dealership come down on price on a new car?

A new car will depreciate about 10% the moment it leaves the lot and another 20% within its first year. After three years, the average car is worth about 60% of what it was when new.

Should you offer less than the asking price?

If there are issues with the property or the price is too high, or both, you can usually underbid and negotiate with the sellers. … If the price has remained the same on a listing for more than two weeks, we feel it is okay for our buyers to offer a price that is somewhat less than asking, usually around 3 to 5%.

What do dealerships use to price cars?

Car dealers use the Kelley Blue Book to set their retail prices. Edmunds also has a free car appraisal tool that helps you calculate what the retail price for a used vehicle should be.

Why are some car dealerships cheaper than others?

Auto sale prices also vary because of a dealer’s location. A cost-of-living index can vary from one zip code to another. Dealers in one neighborhood may be able to offer better prices than another lot, even if they are only a few miles away from each other.

What time of year is best to buy a car?

Looking for a deal on a new car? The absolute best time to buy is December, but you can save big other times too.

What should you not do at a car dealership?

7 Things Not to Do at a Car DealershipDon’t Enter the Dealership without a Plan. … Don’t Let the Salesperson Steer You to a Vehicle You Don’t Want. … Don’t Discuss Your Trade-In Too Early. … Don’t Give the Dealership Your Car Keys or Your Driver’s License. … Don’t Let the Dealership Run a Credit Check. … Don’t Engage in Monthly Payment Negotiations.More items…•