Putting a Price On your Car

Once the salesperson has given you several prices, ask how much of a discount they are offering. They may tell you to name your price if they think that will bring you into the dealership. And remember, at this point, if they think you're a live buyer, they will say anything to get you in. However, it doesn't hurt to find out if the market is in a discounting mood or if your car is in such hot demand that the dealers aren't having to discount it.

Looking at the Numbers
You now have a good idea of the true wholesale price and the true retail asking price of your car. If you want, you can compare it to the industry price books, but keep in mind that these tend to reflect national or eastern/western prices and do not necessarily reflect the realities in your particular market. You might also want to glance through the newspaper and the used-car tabloids that come out each week to see how private owners are pricing cars like yours.

What Has Your Research Told You?

1. You know what your car will bring if you trade it in.

2. You know what a dealer would ask for your car were he to buy it and put it on the lot.

3. You know what the private sellers are asking. Some will be too high and some will be too low.

You might also want to call some of the private sellers (of cars like yours) and ask them if they've had much action. If you find someone who tells you that they've sold the car, try to engage them in conversation and give them the impression that you're just a babe in the woods. Tell them that you really want a car just like the one they sold and wonder what you will have to pay. The intent is to motivate them to tell you what they actually sold the car for. Depending on their asking price, it will add to your knowledge of the current market.