I have always purchased new, but now I want to pick up something, a second vehicle, a 2003 model (BMW 3 series). They are asking above retail according to KBB. Their is about a 8 - 10K spread between trade in (what it is really worth!) and what they are asking. They say, oh, we can only come off the price 2,000 and that is when I walked out. What is the key to negotiating on a pre-owned vehicle? I always feel so slimed when I leave the dealership.

I personally offer something below trade in value and work up from there. If all the dealers are practically pushing you off the lot, then you know it is way too low. Don't ever let them know you are using a "book value" for anything, they will use it against you. I am fortunate to live near Atlanta and Charlotte, so there are lots of dealerships competeing.

The so called books are IMO relatively worthless when it comes to negotiating.

You as a consumer have now absolute way to actually know what I own any used vehicle for.

As marv said, the only one who knows what the dealer is in it for is the dealer. Not even the guy who traded it in knows for sure. But why even care about how much they paid for it? Would you balk at paying $10,000 for a preowned 2005 Escalade if the dealer paid only $500 for it?

The best thing to do is shop until you find a car you like at a price you can afford. Have in mind how much you want to pay each month, how much you want down and how long you want the term to be. If you like the car and like the price, you've done a good job negotiating. Contrary to popular belief, buying a car can be a win win for you and the dealership.

Double post

This has probably been posted, but you should really read this article. It is an edmund employee's undercover assignment as a car salesman.

It was very entertaining and educational.

http://www.edmunds.com/advice/buying/artic...62/article.html