How much to offer on a used car

Start with the asking price

Most private and dealer asking prices leave some room to negotiate. Opening offers on used cars commonly land between 2% and 15% below the asking price. Where a particular car sits in that range depends on its age, mileage, seller, brand and condition.

An offer far below the range without a reason usually ends the conversation. An offer close to the asking price leaves money on the table. Aim for an opening offer you can support with facts.

What gives you room to negotiate

• Age. Older cars carry more wear and upcoming maintenance, which supports a lower offer.
• Mileage for its age. Around 20,000 km (12,000 miles) a year is typical. Well above that supports a lower offer; very low mileage supports the asking price.
• Seller type. Dealers usually price in more margin than private sellers, but they also add fees. Negotiate the total, not just the sticker price.
• Brand and model resale. Models that lose value quickly leave more room. Models known for holding their value leave less.
• Condition and inspection findings. Written repair quotes from an independent inspection are the strongest reason for a lower price.
• Recalls and gaps in history. Open recalls, missing service records or an unclear history all justify caution and a firmer offer.
• Time on the market. A car listed for several weeks often has a more flexible seller.

Set three numbers before you talk to the seller

• Opening offer: where you start, based on the factors above.
• Target price: where you would be happy to settle.
• Walk-away price: the most you will pay, including taxes, registration and any dealer fees.

Deciding these in advance keeps the negotiation about the car rather than the moment.

Making the offer

• Give one specific number and the reasons for it: mileage, needed repairs, comparable listings or inspection findings.
• Ask a dealer for a written, itemized out-the-door price before agreeing to anything.
• For a private sale, confirm the seller owns the car and check for liens through your province or state before paying.
• Be ready to walk away. Another car will come along.