Negotiating can seem daunting at first, but it’s a skill you can develop. You don’t need to be stern or have nerves of steel; it may be just as effective, if not more so, to negotiate with a friendly smile. These tips will help you feel more comfortable when entering negotiations with a seller.
What should I check before negotiating?
Before making an offer, do your homework:
Use the carsales valuation tool to get an estimated value.
Compare the car with listings of a similar make, model, year, condition and number of kilometres.
When inspecting the car, note any scratches, dents, damage or other issues that weren’t disclosed in the ad.
Check how much registration is left, as this can affect the overall cost.
Ask why the seller is selling and whether they have a preferred sale date. If the seller is in a situation where they need to sell in a hurry, for example, they are moving interstate or overseas, that may provide additional grounds for lowering the final price.
Get a vehicle history report to check for finance owing, stolen status, written-off history and other recorded information.
Check the roadworthy. In some states you will need a roadworthy when transferring the vehicle into a different name, so be sure to discuss this when negotiating.
Use this information to decide what you’re willing to offer and the maximum price you’ll pay.
Can I negotiate with a private seller?
Yes. Ask whether the seller is open to negotiating, then base your offer on comparable cars and anything you found when inspecting the car.
Explain how you reached your offer and remain polite and respectful. The seller may accept the offer, decline it or make a counteroffer.
Remember, some private sellers will be attached to their car and may be more likely to offer a better deal if they feel that their car is going to a good home.
Can I negotiate with a dealer?
Yes. Ask the dealer whether there’s any flexibility in the total drive-away price.
You can also discuss optional extras such as accessories or additional warranty cover. Check the cost and terms of any extras before agreeing to them, and don’t pay for extras you don’t want.
Some dealers may have more flexibility towards the end of the month or financial year, but this isn’t guaranteed. Take your time and don’t feel pressured to make a decision.
If you’re financing the car or trading in another car, assess the car price, trade-in and optional extras separately. Compare the dealer’s finance offer with other lenders.
How should I make an offer?
Tell the seller the amount you’re offering and briefly explain how you reached it. You could refer to:
The price of comparable cars.
The car’s condition.
Its registration and service history.
Repairs or maintenance it may need.
Keep your maximum budget in mind before responding to a counteroffer.
What if the seller rejects my offer?
You can increase your offer if it remains within your budget or politely decline.
If you’re still interested, leave your contact details with the seller in case they change their mind.
How do I know if the final price is fair?
Compare the final price with similar cars, taking into account the car’s condition, history, registration and any work it may need.
Before agreeing, consider whether you could find a comparable car in similar or better condition for less.
What should I do after agreeing on the price?
After you and the seller agree:
Before paying a deposit, confirm in writing whether it’s refundable and what conditions apply.
Record the agreed price, inclusions, payment arrangements and any other conditions in writing.
Arrange payment using the agreed payment method.
Complete the registration transfer paperwork.
Arrange insurance before driving the car.
Keep copies of the payment and transfer records.
Any information on this page is provided as a guide only. It is not professional or expert advice and is not a substitute for such advice. The content may not be appropriate, correct or sufficient for your circumstances and should not be relied on as the only reason you do or don’t do anything.