Negotiating Used Car Price

Q.I've been looking for a reliable used car for a while. On Saturday, I saw one at a dealership that I'm very much interested in. Pending an inspection by my mechanic, I plan to make an offer for the car. The one problem is this: the dealer's asking price is $4000, the NADA "blue book" average retail price is $2800. When I mentioned this to the salesman, he double-checked the figure himself, then told me some story about how people aren't spending as much for cars as they used to, used cars under $5000 are hard to come by, and therefore they're paying more for these cars for trade-ins. (I don't believe him for a minute; glancing around the lot, it seemed that _all_ the cars were overpriced by about $1000.) I know he didn't pay more than $2000 for this car, and I don't intend to give him more than $3000 for it. (It has a couple of options not included in the blue-book price.) On Sunday, I happened to meet someone who is an auto salesman, and he told me that the only time a dealer should be asking more than average retail for a car is if it's something that's in heavy demand (such as 4x4 trucks or small wagons), or in exceptionally good condition. This car is neither. I'm totally new at the negotiating game (this is only my second car), and I don't want to play it for very long. But the salesman I'm dealing with is pretty slick, and his manager is even slicker. Given that we both know what the car is _really_ worth, what should my strategy be? Will it be possible to talk him down to my top price, or should I just lay things out on the table to begin with? I'd much appreciate the input of some people who have done this before.

A.You're usually much better off buying a used car from a private party through a newspaper ad. Some private parties are unreasonable, but after months of frustration trying to sell their car for more than it's worth, they often suddenly lower their price drastically. Don't even waste time negotiating, just make some offers that expire when you buy a car. (e.g., "This offer is good for one week or until I buy a car anywhere, whichever comes first.") It might be a good idea to put your offers in writing and walk away before they have time to read them, so they won't argue and get mad. Or better yet, leave it in their mailbox or something. With a used car dealer, the main thing you get for paying twice what you would have to pay a private party, is to have the car cleaned better before you see it. For example, look at the engine and notice how well it has been cleaned. But it's just as likely to malfunction. And if they give you a warrantee, it's often through a sleazy warrantee insurance company that will likely reject any claims you make and might even be out of business by then. Also be aware that the "average retail price" itself is probably a ripoff. People who buy used cars at "retail" from dealers tend to be suckers.

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