Buying a used ride instead of a new one is a surefire way to save a lot of cash and still get a good car for yourself. However, sometimes even used cars have a price tag that can be a little out of reach where your budget is concerned. What a lot of shoppers looking for a used car do not know is that the price on the window of a used vehicle may not be the bottom-dollar price. In fact, most used car dealerships have some wiggle room with their vehicle prices, which means you may be able to get a better deal. Here's a look at why used car dealerships may be more flexible with those sticker prices than you think.
A lot of used car dealers get their inventory through trade-ins
When someone buys a new car or even a newer car, and they trade in their vehicle, a lot of those traded-in vehicles go to used car lots where they will be sold. In fact, many used car dealerships are secondary lots that are affiliated with larger new car dealerships. Even though the used cars that were traded in have value, they often did not involve the exchange of cash to get where they are; for sale. This means that the dealer will oftentimes put a sticker price according to resale value, but they will be more than open to a little negotiating because even at a lower price, they won't be taking a major loss.
Many used car dealers markup the price sheerly to leave room for negotiating
The fact of the matter is, when people buy a used car, they like walking away feeling like they got a good deal. Car dealerships know this fact, so it is not uncommon for them to slap on a top-dollar price tag sheerly for the purpose of giving the buyers room for negotiating a lower deal.
Some used car dealerships price high so that they can run sales on inventory
Just like a retail store, car lots often run specials at certain times of the year. For example, they may lower prices around tax-refund season to attract new customers. Having a higher sticker price that allows some wiggle room makes it possible to drop prices during sales events to make it look like they are offering a better deal to customers, and they actually are, but not while taking a loss.