Buying a used car is one of the biggest purchases many Australians make outside of property. Whether you’re after a budget runabout, a family SUV, or a well-kept prestige model, the asking price is rarely set in stone. Learning a few simple used car price negotiation tips can help you save hundreds or even thousands of dollars.

You don’t have to be scared or stressed out when you negotiate. You don’t need to be able to hide your feelings or have years of experience negotiating. If you do your research, pick the right time, and act confidently, you can take charge of the conversation and leave knowing you got the best deal.
This guide tells you everything you need to know, from getting ready to meet a seller to understanding how prices work, spotting sales tactics, and using tried-and-true negotiation techniques.

Why it’s important to negotiate over the price

A lot of buyers don’t want to haggle. They are afraid of being rude or of missing out on the car if they push too hard. But the truth is that prices for used cars are often higher than they need to be so that people can haggle.

Private sellers might set high prices for their cars to see how the market reacts. Dealers might start with a number that has a big profit margin, which lets them give “discounts” and still come out ahead. You might end up paying more than you need to if you accept the first offer.

Negotiating also gives you the chance to get extras like a full tank of petrol, renewing your registration, or making small repairs before you buy. It’s not just about paying less; it’s about getting more value for your money.

Before you make an offer, do the necessary research.

The most important part of a successful negotiation is getting ready. Going in without any information is like taking a quiz without studying: you’re just hoping for the best.
Do some market research first.
Look on websites like Car sales, Cars Guide, Gumtree, and Facebook Marketplace. Find cars that are the same make, model, year, and condition as the one you want. Value is affected by the number of kilometres driven, the service history, and the location.
Look at more than one listings.
Don’t only buy from one seller. Knowing the going rate for other options gives you power, even if you have a favourite one. You can use the fact that another car is available for less money as a bargaining point.
Make some calls.
To get the best price from a dealer, call a few local dealerships and ask them. You might be surprised at how different they are.
Learn about the car’s past.
Get a PPSR (Personal Property Securities Register) report to see if you owe money, have had an accident, or have had something stolen. A clean history is worth more, and a bad history can be a strong bargaining tool.

Determine the difference between sales to private customers and sales to dealers.

 When you negotiate with a private seller or a dealership, the process is different.
Private sellers: 
• Usually willing to lower the price because they want to sell.
• May not have much sales experience, which gives you an edge.
• Won’t give you a legal warranty (unless the manufacturer’s warranty still applies).
• Can’t always offer financing or trade-in options.
Dealers: They may be less flexible on price, but they can offer extras like tinting, registration, or small repairs.
• Must follow consumer laws and may give a warranty on used cars.
• Will take your old car as a trade-in, which you can use in negotiations.
• Sometimes have sales goals for each month, which makes visits at the end of the month more useful.

Find out what terms dealers use to talk about prices

Knowing the lingo of the industry can really help you when you buy from a dealer.
Price on the invoice
The price the dealer paid the factory for the car. This is usually less than what you’ll be able to buy it for, but knowing it exists helps you get a better deal.
Price tag
The suggested retail price from the manufacturer, which is usually on the windscreen or in an online listing. You should never pay the sticker price; it’s the first step in negotiating.
Holdback for dealers
A percentage of the car’s retail price (usually about 3%) that the dealer gets back from the manufacturer after the sale. It means they might still make money even if they look like they’re giving you a big discount.
Cashback or dealer bonuses
Sometimes, manufacturers give dealers extra money to sell certain models quickly. If the car you want has one of these, the price may be more flexible.

Find common sales techniques.

 People who sell cars know how to negotiate. They use tried-and-true methods to get buyers to pay more or make a quick decision. Knowing about these tricks gives you power.
Making things urgent
You might hear things like, “Another buyer is coming to see it this afternoon,” or “This deal is only good today.” It may be true at times, but it is often meant to make you hurry.
Focusing on payments every week
Dealers might change the focus from the total price to a payment amount that sounds reasonable, which could make you miss the full cost. Keep bringing the conversation back to the total price.
Putting extras together
You might be offered “free” upgrades, tinting, or accessories, but the price you pay usually includes the value of those things.
Downplaying problems
A seller might not think much of a scratch or worn tires if you bring them up. But fixing things costs money, so you should include these problems in your offer.

Test drive and check everything out carefully.

A test drive isn’t just about comfort; it’s also a chance to find a way to get a better deal.
Look for problems with the mechanics
Pay attention to any strange noises, how quickly the brakes respond, and any vibrations or steering pull.
Check for flaws in the appearance
Dents, scratches, and paint that has faded lower the value. Even small flaws can give you a lot of power in negotiations.
Check for wear and tear
Check the electronics on the dashboard, the tires and the upholstery inside. You have to pay for repairs or replacements, which can lower the price.
If you don’t know much about cars, have a trusted mechanic check it out before you buy it. This small cost up front can help you avoid buying a lemon and gives you proof for negotiations.

Use the “if” and “then” approach

The “if and then” method is one of the best ways to negotiate. For instance, “If you can accept $17,500, I’ll make a deposit today.”
This shows the seller that you are serious about buying and gives them a clear reason to accept your price. The most important thing is to base your “if” on your research so that it seems like a fair trade.

Be ready for departure

 The best way to get what you want is to be willing to walk away. If the seller won’t accept your offer and you can’t justify paying more, thank them for their time, leave your contact information, and leave.
Sellers often change their minds within a day or two, especially if they don’t get better offers. Walking away shows that you are sure of yourself and stops you from making a hasty, emotional purchase.

Time your buy to get the most out of it

Timing can make a big difference in how well you negotiate.
Dealers come in during the last week of the month or quarter, when sales teams are under a lot of pressure to meet their goals. They might take lower offers to get more bonuses.
People who sell things privately
During the winter and holidays, there are usually fewer buyers, which gives you more power to negotiate. Sellers might be more willing to work with you to make a quick sale.

Stay in control of your feelings

Loving a car can cost a lot of money. If the seller thinks you care about the item, they are less likely to lower the price. Don’t get upset; just think of it as a business deal. There are always other cars.

Think about the whole deal, not just the cost.

 Extras can make a higher price worth it at times. Think about how much the following is worth:

• A roadworthy certificate is included
• Renewing your registration • Filling up your tank

• Getting new tires or a battery

• Extending your warranty
If these extras help you save money or time, you should think about them when making your choice.

Talk about your trade-in separately.

 Talk about how much your old car is worth separately from how much the new one costs if you’re trading it in. If you mix the two, it may be harder to see what you’re really getting. Before you buy it, get a few trade-in quotes so you know how much it’s worth.

Last things to check before signing

Before you agree, make sure you have a written deal on the final price and any extras.
• Know what warranties or return policies apply.
• Have done all the necessary checks on the car’s history and condition.
• Are sure that you’re getting a fair price based on what you’ve learnt.

To finish up

 You don’t have to be pushy or rude to get a good deal on a used car. It’s all about being ready, being aware, and having faith. You can get a better deal without stress by looking up market values, figuring out why sellers are selling, spotting common sales tactics, and using proven methods like the “if and then” approach.

Don’t forget that your money is worth something. You can use the money you save for petrol, insurance, or a weekend trip in your new car.
These tips for negotiating the price of a used car will help you get the best deal, whether you buy from a dealer or a private seller.

Learn more about the tips to buy used cars in Australia.