If You Know Their Rules ...
You Can Play Their Games

Act 2
Now you start calling ... as a friend. Tell the seller that you've done some research and discovered that the wholesale value of the car is $9,100. Say that you have scraped together some more cash and can offer them $8,765. Don't quote a round number. It should sound as if you've really scraped together the cash from your piggy bank. This conveys the impression to the seller than you're about as far as you can go financially and that if he wants to get rid of the car, he's going to have to deal with you in that range.

Candidly, the seller may simply turn you down and revert to the $12,000 figure. If so, be prepared to walk away. However, if this person has had the car on the market for a week or more, he or she will be very anxious to sell it. And unless it's a high-demand car, they may wonder if you're the last potential buyer they will see. Plus, now that they know the wholesale value is only $9,100, the need to make a deal may well motivate them to continue to negotiate.

"Look, " the seller might say, "if you can come up to $9,300, we have a deal. "

You can counter with $9,100 or $9,200 to be sure that you're not spending any more than you have to. Let's assume for this discussion that you settle on $9,300. It's time to pay for the car.

Act 3
After you've gone over all the papers and the title and checked the vehicle identification number (VIN) against the one on the car, you're ready to part with the money. You give the seller a certified check or money order for $8,800.
"We agreed on $9,300!" might be the response.
At this point you pull out the mechanic's checklist and your note that the seller has agreed to deduct the $500 for repairs.