How to Buy and Sell Used Cars for Fun and Profit

Your best success in negotiating will come by just being yourself and treating people the way you would like to be treated. There is no reason be phony or attempt to intimidate people.

Just be friendly and be yourself and people will like you. Never argue with the seller and always be as diplomatic as possible when pointing out to the seller any problems with the condition of the car.

Remember people will be more willing to give you their lowest price if they like you. Always start with some small talk to put the seller at ease.

And should the conversation start to get a little tense, more small talk. You can ask him about his job or talk to him about the neighborhood and schools it that area.

Things that you don’t want to talk about are that you are looking for cars to resell. Don't pretend to be the smart businessman.

You are just an average Joe looking for cheap transportation. You are not in love with any make or model, just looking for an extra car.

You want him to believe that his need to get rid of the car is greater that your need to buy his car. Don't be rude or sarcastic though. The calmer and friendlier you are the better price you will get.

I like to find out why they are selling the car. It can really help if know his motivations. If he needs to sell in a hurry I can help him because I bring cash.

I have already determined my price and will have that amount of cash in one pocket. I don't want to pull out $2,000 dollars and offer him $1,500. I would rather pull out $1,500 and offer him that.

He will think that is all I have. He doesn't need to know about the $500 I have in my other pocket! I can always use that money if needed. Like if the car is really super clean with above average curb appeal.

Never tell the seller that his car is not worth a given price, if you think his price is too high. It is always better to tell him that you can't afford that price.

But always do your homework ahead of time. You need to know in advance your negotiating range. Never be the first person to name a price.

And always let the seller tell you what he price he is asking. You can then ask him if that price is firm. Once the negotiating begins always be the last person to suggest a price.

Negotiating starts when you are near completing the inspection. That way you can use any faults found during the inspection to suggest he reduce his asking price. I always ask the seller if that’s his lowest price. I continue to inspect the car to the point of just pretending to inspect.

And no matter what he says his lowest price is I will ask to take less. For example, say we have been talking for 30 minutes while I inspect the car. He has said his lowest price is $2,100. I will ask him if he has had any other offers. He will usually say he has.

I will typically say something like this. I think your car is probably worth pretty close to that but I just can pay that much.

I will then ask him if he will take $1,900 for it. If he is a little green to the negotiation process he will usually take my offer. If he is more experienced he will counter with something like $2,000.

I like to be the last person to suggest the price, so I will counter again with something like $1,950. If he says yes then we have a deal. If he says no than I have three options.

The first option is to accept his final offer of $2,000. My next option is to offer him a little more. Like maybe $1,975. And then of course my last option is to walk away.

What I like about negotiating is that the buyer is really in the driver seat. No pun intended. I have the money and if I don't like his price I can just walk. But never get mad or insult the seller. Always leave the door open.

Your goal is to not offend anybody. Secondly to imply that it's an ok car but not exactly what you were expecting.

It could work for you only if the price is fantastic. Never get into a bidding war. If the seller says he has an offer of $2,100 and you know you want it at $1,900 it's time to walk. Thank him for his time, and leave.

On to the next one. There is no shortage of used cars for sale. During negotiations remind yourself that if I don't get this car it is not the end of the world.