Haggling
This is usually a buyer's least favorite aspect of car dealing - mainly because it involves conflict, i.e. you want the lowest possible price whilst the seller wants the highest possible price. The trick with haggling is to stay firm and not be intimidated, keep the negotiations calm and good natured, and most importantly - know what you're talking about.
This last point is why it's so important to check the car thoroughly beforehand. Any faults you discovered or any imminent expiry of tax or MOT are all bargaining chips to help you land your desired price.
Enter negotiations with a low ballpark offer rather than one that's so insulting it will make the seller laugh you out the front door. You've already set a top budget, so if you can agree on a price somewhere between these two figures then you've done your job. Remember, you're free to walk out if the seller is being stubborn (this tactic could even see the price drop before you reach the door).
Tip: try not to mention you've got a car to trade in as part exchange until you've settled on a price for the car you want to buy.
Making Payment
Cash: Having cash to hand is one of the strongest bargaining chips when negotiating on price. Firstly, the seller gets their money straight away, and secondly, a car dealer avoids paying a credit card transaction fee.
Credit Cards are a safe and convenient way to buy, but you may not get the best price from a car dealer because they'll have to pay a card transaction fee.
Cheque: Pay cash in a private transaction and you can take the car straight away, pay by cheque and you'll probably have to wait for funds to clear before picking up the keys. Note: if buying privately and paying by cheque, see as much of the seller's ID and proof of address as you can before leaving their home. Some buyers even take photos of the seller with their mobile phone for extra peace of mind. Basically, don't hand over the cheque until you're satisfied that the seller will still be there when you return to collect the car.
Bankers Draft: This is a type of cheque that is issued by your bank (for a fee). They are viewed as safer than money (in the sense that it's less risky than carrying cash), more secure than a personal cheque (in as much as they are drawn directly on the account of a bank rather than your account), and any motor dealer will gladly accept them in lieu of cash.
Important: No matter how you pay, always get a receipt.
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