With the economic dip in almost all world economies, you might not afford a new vehicle. While this at times seems like a disadvantage to you, it also means that more people are trading their cars in excellent condition for cash or a cheaper car model. Used car yards now feature some of the best and latest car models, unlike in the past when they were filled with rusty and outdated car models.
Before talking to Jaguar car dealers in Auckland, most people will look for negotiation tactics that will guarantee them significant savings. While these will work wonders and significantly slash your car’s price, they will do little if you do not understand what price you are negotiating. When buying a used car, several terms throughout your purchase journey might confuse you. Here are some of the primary pricing terms you should use to guide your negotiation:
MRSP {Manufacturer’s Suggested Retail Price}
This marks the price a car manufacturer sets for a given trim line and model. The car dealer, in this case, will determine the cost of his/her product based on the MRSP along with the condition of the car and mileage. The MRSP is also called the sticker or asking price since this is the bottom line figure displayed on a vehicle. The seller knows that he/she might not get this price, so aim to counter it with a lower price when negotiating with a salesperson.
Book Price
This is the value of a car listed on car dealership platforms. You will, of course, scour these pages before setting foot in a car yard to have a rough idea of how much the retail price of your car should be. When salespeople refer to the blue book value of a vehicle, this is the one they are referring to. When starting your negotiation, have an opening offer of below $1,000 of the listed book value of your car. Raise it by $250 until you reach an agreement.
Trade-in Price
When trading your vehicle for a new one from a used car dealership, start by negotiating the price of your trade-in rather than the replacement. This price is close to what your vehicle will go for at a used-car auction. You should first get an idea of how much your car will sell for in a sale so that you know the limits you should keep your negotiations within.
Market Adjustment Price
This is also called a dealer adjustment. It applies to cars that have only been recently introduced onto the market or have a long list of willing buyers. Negotiate the price since it differs among dealerships. Alternatively, waiting for some time will see the scrapping of a market adjustment price as an incentive for buyers.
Used cars are, of course, cheaper than their new counterparts. When you are, however, none the wiser, you might end up paying more than you should for your used car. Negotiating the prices will guarantee you the best possible price for your used car.