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The Practical Guide to Buying Your Used Truck
- By Lawrence McCord
- Published 02/15/2006
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Whether you are buying a used truck from a dealer or a private party, let them know you have the cash in hand (or financing arranged) to make a deal on the spot. Preface your offer with a statement like, "I'm ready to make a deal now. I can give you cash (or a cashier's check) now. But we need to talk about the price."
At this point, you need to have a persuasive argument about why the price is too high. So let's talk about pricing. The foundation of successful negotiation is information. This is particularly true when buying a used truck. And yet, the condition of used trucks means prices will vary widely.
Dealers have lots of experience negotiating. Most private parties do not. Therefore, buying a used truck from a dealer or a private party will be two very different experiences. But there is one overriding similarity — they both want to sell the truck. In fact, the incentive to sell the truck might be greater to the dealer than to the private party owner.
You should, however, follow these guidelines when negotiating:
· Only enter into negotiations with a salesperson you feel comfortable with
· Make an opening offer that is low, but in the ballpark
· Decide ahead of time how high you will go and leave when your limit's reached
· Walk out — this is your strongest negotiating tool
· Be patient — plan to spend an hour or more negotiating
· Don't be distracted by pitches for related items such as extended warranties or anti-theft devices
· Expect a "closer" (another salesman you haven't previously dealt with) to try to improve the deal before you reach a final price
Once you have a deal, you need to make sure the transaction is completed properly.
You also need to make sure you have insurance for the truck you just bought before you drive it away. Also, the F&I person will probably try to sell you a number of additional items: an extended warranty, alarms or anti-theft services such as LoJack, prepaid service plans, fabric protection, rust proofing and emergency roadside kits. Some people swear by extended warranties, so this is something you might want to consider (unless your used truck is certified or still under the manufacturer's warranty). However, the other items typically sold in the F&I room are expensive and hold little value for you.
The F&I person may seem like a financial advisor, but he or she is really an experienced salesperson. Some F&I people can become very persistent trying to sell these items. Be firm. Say, "I'm not interested in any aftermarket extras, thank you. I just want the truck."
Once the contract is ready, review it thoroughly. In most states, it will contain the cost of the vehicle, a documentation fee, a smog fee, a small charge for a smog certificate, sales tax and license fees (also known as DMV fees). Make sure you understand the charges and question the appearance of any significant, sudden additions to the contract.
Finally, you should inspect the truck before you take possession of it. If any repair work is required, and has been promised by the dealer, get it in writing in a "Due Bill." Make sure the temporary registration has been put in the proper place and — you're finally on your way.
When you buy a truck from a private party, you will probably be asked to pay with a cashier's check or in cash. But before money changes hands, request the title (sometimes called the "pink slip") and have it signed over to you. Rules governing vehicle registration and licensing vary from state to state. Check with the DMV in your state (much of this information is now available on DMV Web sites).
Once all of the paperwork is complete, it is finally time to relax and begin enjoying your new purchase: a good used truck.
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The Practical Guide to Buying Your Used Truck