back to articles | December 31, 2018 | Dale Peterson

Categories: Buying & Selling Cars Vehicle & Buying Research

Buying a Used Automobile

Used Car Dealer Vs. New Car Dealer

So, you're in the market to buy a used automobile. Where do you go? The following will look at buying a used automobile from a new car dealer versus a used car dealer.

Buying a Used Automobile from a New Car Dealer

New car dealers often sell the best quality used automobiles. New car dealers sell clean automobiles with the manuals and car history. They also have the highest prices. A buyer should look for a wholesale price. Salespeople are skilled in the art of persuasion. (It should be noted here that the warranty time period is often not enough to make up the difference between wholesale and retail price.) Funds for a used automobile purchase should be obtained prior to shopping rather than the selling dealership. By financing through an online company, such as, the buyer usually pays lower interest than the dealers offer and is able to negotiate the price in a much easier way because he pays in full for the automobile. When buying a used automobile at a new car dealer, buyer pays wholesale plus a large fee or commission which adds up to a retail price. Buyer should not hesitate to make an offer $1000.00 - $2000.00 less than the asking price if that is what he thinks the automobile is worth. The dealer needs to get the impression that the buyer has the knowledge about the value of a certain automobile. has the link for the New Car Prices, Dealer Invoices and current Rebates and Incentives which may help you get the better picture of what you should offer. Buyer is the one who should be in control of the negotiation.

Buying a Used Automobile from a Used Automobile Dealer

The used automobile dealers tend to sell somewhat lower quality automobiles at lower prices. When buying from a used automobile dealer, buyer should always obtain prior approval from an online financing site such as rather than financing through the dealership. By obtaining financing online, the buyer can usually pay much lower interest than the dealers offer. It will be easier to negotiate affordable price if you buyer is paying the entire sum (through his own financing). Also, if buyer does decide to use the dealer's financing plan, he should take the time to multiply the monthly payment times the number of months the loan is for (commonly 24, 36 or 48 months). The buyer will usually discover that the low monthly payment the dealer advertises add up to a significant amount of interest, making the total cost much higher than the retail value of the automobile. It is usually easier to negotiate with a used car dealer. They are generally smaller, independently owned businesses that need every sale. Many of the salespeople are not always as well trained as those at the large new car dealerships.