Buyer Question: How do I determine the price I should pay for a used vehicle?

Comment: There are several prices the buyer should be aware of when determine the price they should pay for their next used vehicle.  These prices include 1) Dealership Wholesale Price, 2) Dealership Retail Price, 3) Dealership Lot Price and 4) Private Party Price.

Dealership Wholesale Price – The price dealerships pay for the vehicle when buying it as a trade-in, from an auction, from rental companies or from other third parties.

Dealership Retail Price – The price dealerships typically sell their used vehicles to a knowledgeable buyer.

Dealership Lot Price – The price dealerships put on their price sticker and hope to sell to an uninformed buyer.

Private Party Price – The price at which two individuals will buy/sell a vehicle.

Buyer Tip:  Unlike new vehicles not all used vehicles are alike. Prices of used vehicles can vary significantly depending on how its previous owner(s) treated it, mileage, area of the country where it was driven, and additional previous owner(s) add-ons.  Like new vehicles the trim level and option packages will also affect its price.

Buyer Tip:  A CARFAX vehicle history should always be obtained before buying a used vehicle.  The CARFAX report will include a title, odometer, problem and registration check.  CARFAX reports maybe obtained at www.carfax.com. 

Buyer Question:  Where do I find the above prices for a vehicle? 

Comment: A vehicle’s Dealership Wholesale Price, Dealership Retail Price and Private Party Price can be found on several Internet sites e.g. Autobytel at www.autobytel.com.

Buyer Tip: When negotiating the price of a used vehicle the potential buyer should start with a price based on the Dealership Wholesale Price not the Dealership Retail Price or Private Party Price.

Buyer Tip: Buying from a third party will usually save the buyer more money.  Unfortunately, it also normally takes a lot more effort.

Classic Dealership One-Liners.

“This vehicle is missing its price sticker, but don’t worry we will give you a great deal!”

Comment: Always ask the price of the vehicle before sitting down to negotiate the price. 

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