How much can I talk seller down on car price? How much discount can I expect to get on a used car?
Let's get one thing straight before we start this discussion. People who sell used cars, including dealers and individual private parties, rarely price their cars at fair market value. It's usually more. It's called "asking price." A seller can set asking price any way he wants, and usually does.
The reason the above statement is important is that many new and inexperienced car buyers assume, maybe unconsciously, that the price a seller places on a car is a fair and reasonable price, but that he might be persuaded to go lower for a discount if asked. The thinking goes that, although the asking price is fair and reasonable, the seller can be "talked down" such that both parties feel they've gotten a reasonable deal.
So what's wrong with that thinking?
The thing that can be wrong here is that the asking price can be unfair and unreasonable, and after you "talk him down", the agreed-to selling price is still unfair and unreasonable. If you don't know what a fair and reasonable price actually is, it is easy to fall into this trap.
For example, let's say a dealer has a particular car priced at $8000, that is actually worth only $6000 retail (according to Kelley Blue Book and NADA Guides). An inexperienced buyer will not check actual fair market value and assume the dealer's price is reasonable, although a little higher that he might be willing to accept if asked. So the buyer "talks the dealer down" to $7000. The buyer now thinks he got a $1000 discount off of a fair price and is happy with the deal. However, the dealer just sold the car for $1000 more than it was worth, and he's happy too. He could have still made a nice profit even at $6000, or less.
Summary
So when I'm asked the question "How much should I try to talk down this car's price?" I have to respond with another question back — how much is the car actually worth?
There are so many free sources of this information on the Internet that it is a shame more people don't use it. There's Kelley Blue Book (www.kbb.com), Edmunds (www.edmunds.com), NADA Guides (www.nadaguides.com), Cars.com, and many more. Taking the time to do a little pricing research can reward you well when buying used cars.
You can find many good used cars at UsedCars.com where you can search for cars in your price range.