How to Negotiate the Price of a Used Car

Know What the Car Is Worth

Compare listings for the same model, a similar year, kilometres and trim, in your state. Note how long the car has been listed, too: one that's been for sale for weeks usually has more room on price. A car priced above similar ones has room to come down; one priced fairly may have little.

Use What the Inspection Finds

Every fault you find is a cost you can put a number on: tyres, brakes, a service that's due, a timing belt, or panel damage. The items tagged "negotiate" on the used car inspection checklist are the ones to price in. A mechanic's written report carries the most weight with a seller.

Safety-critical problems are different. Signs of a hidden crash repair, serious rust or a brake fault are reasons to have the car checked properly or walk away, not just to ask for less.

How Much Below the Asking Price to Offer

Start from what similar cars sell for, take off what the faults you found will cost to fix, and that's roughly what the car is worth to you. Open somewhat below that figure, so there's room to meet in the middle, and give your reasons with the offer.

An offer far below the asking price with no reasons can end the conversation. One backed by similar listings and a list of what needs fixing is much harder to dismiss.

Negotiating With a Dealer

Dealers usually expect to negotiate on used cars. Agree on the drive-away price first, and keep any trade-in and finance as separate conversations, since a good trade-in figure can be offset by a higher price or finance rate. Ask what's included: registration, a roadworthy or safety certificate where your state needs one, a service, and any warranty.

Buying from a dealer gives you the consumer guarantees under the Australian Consumer Law, which a private sale doesn't, so weigh that against a lower private price.

Negotiating With a Private Seller

Private sellers are often attached to their car and may have a figure in mind, so stay polite and stick to facts: what similar cars sell for, and what needs fixing. Being able to pay and collect the car quickly can matter as much as the price. Never pay a deposit on a car you haven't seen. See buying from a private seller.

Does Paying Cash Get a Better Price?

With a private seller, being ready to pay straight away can help. With a dealer, not necessarily: dealers can earn money from finance they arrange, so a cash buyer isn't always their best customer. Agree the price before you say how you'll pay. Either way, pay by bank transfer rather than carrying cash, and get a receipt.

What to Say

When to Walk Away

Walk away if the PPSR search shows money owing that won't be cleared before you pay, the VIN doesn't match, the inspection finds a safety-critical problem the seller won't fix or price in, the seller won't allow an inspection or a proper test drive, or you're being pressured to decide on the spot. There will be another car.

Negotiation Coaching in Shufti

Shufti, the used car inspection app, estimates what the faults found in your inspection will cost to fix, suggests an opening offer, and helps you draft messages to the seller.

Questions Answered