How important is it to negotiate on a used car price?

There's a rather simple adage that can change the way your life works out. No, AutoTrader has not morphed into the self-help sector of the industry (although we really do hope that you do benefit from some of the information we post) we just want you to be able to make the most of your car buying and ownership experience. And what could be better than saving money?

Related: How to negotiate when buying a car

Negotiations are not for everyone. Not everyone has the ability to bargain for a better deal or haggle for a discount. I know this, I worked in sales for a while and it was awful - I have too much of a conscience to be able to sell something I know is overpriced to someone who I can see is strapped for cash. Also, I'm far too gullible and buy into every sob story. Needless to say, bargaining was not my strong suit. 

How important is it to negotiate on a used car price?

Cars and houses, the two most expensive things you will buy in your lifetime. It makes sense then that you would want to get the best price possible for either of these. Something as small as a 5% discount can mean thousands of Rands saved, thousands of Rands that can be put towards a few services or a few months' insurance. All used car dealerships are trying to make money. You're trying to save money. There's a conflict that needs resolving and this is where negotiation comes into play. 

The simple adage that we have for you is: If you don't ask, the answer will always be a 'No'. 

There is no harm in asking and even if the salesperson says 'no', you're in exactly the same place you were before and nothing has changed. Except that you now have a better understanding of where you stand with the negotiation. 

It can be a little tricky to know how much discount to ask for or what to offer as an offer too low can often be insulting to the salesperson and dealership. You need not worry if you start with a reasonable amount and get the conversation started around the price. Starting at around 10% discount won't necessarily hurt you at all. If you're feeling brave and confident, you can start with 15% but then you will have to be prepared to settle for less than that 15%.

I good way to negotiate with a salesperson is to have a hard cap on how much you are prepared to spend. Remember, it's their job to try and get as much money from you as possible so they will naturally counter and try and get you to spend more than that. Stick to your guns and don't cave in.

How else to get value

If you're not winning on the sale price of the vehicle, you can ask the dealership to sweeten the deal by including some extras. Items such as smash-and-grab tining/window film, paint protection or an extended warranty for 6-months can help add value to the vehicle while not costing the dealership too much. They will often get a trade price on these while it would cost you full retail if you were to fit these items yourself.

You may bounce back and forth before settling on a final price and list of additional extras, but you have the opportunity to save here.

Finally

In closing, it's important to remain respectful during the negotiation process and treat the salesperson in a kind, courteous manner. A negotiation doesn't have to be a fight or volatile and if it happens to escalate to that, walk away. If at any time you feel that you are not being respected, walk away - respect works both ways and you want the experience to be a pleasant one at the end of the day. You are allowed to say 'no' without guilt and you are allowed to walk away from a deal that isn't in your best interests. A salesperson that is committed to making a sale will work with you to try and find a happy compromise.