Best Way to Value Car to Negotiate Respectfully on a Private Sale?

sexymrdaniel on 14/05/2022 - 17:32

I’ve been taking the bus to client meetings for the last few months since the wife has stolen my car for her travel to work (she needs it more than I do). I miss the freedom of a car (and driving in general) when she’s got it and so we’ve allocated up to $20k of our savings to get me a car (including government fees/rego etc.).

I’ve seen a few cars I like on marketplace, but they all seem to be a fair bit overpriced. I haven’t really bought privately before (above $3000 at least) so I’m not overly familiar with how to negotiate or what a good starting point is (especially with this whole car shortage situation).

A family member recently sold their car using the CarSales Instant Offer site and I figured it would be about what a dealer would have valued it at. If I plug in the car model, age, kms etc., find the price and add a couple of grand on top, would that be a good starting point for negotiation?

For example; I liked the look of one listing, a manual 2011 Golf GTI (have driven one once and loved it - open to other fun suggestions too) with 110k kms listed at $17,500. I looked up the vehicle with the instant offer quote and was given $12,700. If everything checked out and I began around $15,500 ish, would this be a good initial offer?

Essentially, I want to end up paying what the car is worth, but not come off like a dick when I start to negotiate. Is this a good way to get an idea of the cars value, or does this instant offer thing grossly undervalue the car in the private sales area?

Any other ideas on how to accurately value a car?

Automotive

Comments

  • SF3 on 14/05/2022 - 17:35
    +4

    Seems like another OzB car discount déjà vu.

  • Ocker on 14/05/2022 - 17:44

    You can buy a small brand new car for under your budget amount

    • sexymrdaniel on 14/05/2022 - 17:53
      +1

      That is true, I have seen a few new cars (MG3/Picanto) under our budget. As financially irresponsible as it sounds (starting to think I shouldn’t have posted to OzB) - I love more powerful cars. I drove an Astra RSV before the wife stole it and love the extra power and torque from these turbo’d engines.

      • Quantumcat on 14/05/2022 - 18:46
        +17

        Why don't you buy the wife a car and keep the one you like? You don't need two powerful cars

  • superhans on 14/05/2022 - 17:47
    -8

    Write each seller a message saying: "What is the lowest price you will accept for this car?"

    • apsilon on 14/05/2022 - 17:55
      +14

      I wouldn't even respond to a message like that.

      OP, if you go and see the car, assess it's condition, do the usual checks etc then just make an offer. I wouldn't find $15.5k rude on a $17.5k car and you can always move up if you're willing to pay more.

      • sexymrdaniel on 14/05/2022 - 18:00

        Thanks for the response. I think this is the kind of info I’m looking for - whether people would be willing to work with me after an initial offer like that.

    • sexymrdaniel on 14/05/2022 - 17:57

      I guess I was trying to figure out a calculated way of negotiation, but perhaps I’m over engineering this whole thing and should just start with that.

  • AustriaBargain on 14/05/2022 - 17:59
    +2

    How far is work? You should do the math on whether it's worth catching an Uber instead of buying a second car, for some people it can work out to be cheaper.

    And don't forget with the bus there's the advantage of being able to have a cheeky drink or smoke before or after work.

    • sexymrdaniel on 14/05/2022 - 18:12

      It really depends. I work in a client facing position in and will travel to different meetings up to about 20km from the CBD (I’m in Adelaide). Usually have 3-5 of these trips per week.

      To be honest, I miss the feel of driving, but I’m sure I could keep taking the bus and it wouldn’t be the end of me. I don’t have to wear a mask in a car though 🙃

      • FW190 on 14/05/2022 - 18:33
        +5

        if you are using the car to meet clients, is there any possibility to ask work for a car?

  • oscargamer on 14/05/2022 - 18:11
    +4

    Get an MG3

    Nasty thing, but cheap and warranty

    • sexymrdaniel on 14/05/2022 - 18:41

      They don’t seem to be the most exciting thing I’ve seen to drive, but something with warranty would be a smart choice.

      Sometimes I wish I didn’t enjoy driving a quick/fun car so much.

      • oscargamer on 14/05/2022 - 19:42
        -1

        How about something a little off centre?……

        A Citroen DS3 DSport manual 1.6 turbo (same engine as Mini Cooper S)

    • Pluto88 on 15/05/2022 - 07:57
      +1

      These are awful cars, a 10yo corolla would be better

      • Maccadoodle on 16/05/2022 - 09:26
        +1

        10years for a Corolla is just broken in comrade! Mine is 1997 model and brimming with life. (Only one airbag - but generally only me in it.) Look for older well serviced low km's veehickle and you will have cheap motoring.

  • Daddy on 14/05/2022 - 18:12
    +3

    Steel and vehicle componentry are harder to access for vehicle manufacturers and with higher shipping costs and shipping delays, the chance for a new car buyer to get the car that they want now is slim to none.

    This means that they have to buy a near new second-hand car at a premium markup or wait till the end of the year, or next year to make their new car purchase.

    The near new second-hand car market relies on trade-ins to replenish stock, which isn't happening due to the above issues resulting in this perceived overvaluation.

    Because the near new second-hand car market is at a higher cost now, the people that may have sold their +10yr old car for a new, or near new car are now holding off trading in or selling their older second-hand car, resulting in a premium for the older second-hand car market.

    So when you are thinking that the price seems overvalued, are you comparing it to today's market forces? or the market forces when you last checked +1-2 years ago?

    • sexymrdaniel on 14/05/2022 - 18:26
      +1

      I’ve been mostly comparing them to the Carsales Instant Offers quotes. Some sellers often asking 5-10k more than that offer. I’ve looked at other sites like redbook, but they don’t seem to account for the recent market trend you’ve mentioned.

      I do have a soft spot for hot hatches and there doesn’t seem to be many private listings and no local dealer offers to compare them to.

      Perhaps both I and Carsales have underestimated the value of these cars by a fair margin.

      • apsilon on 14/05/2022 - 18:31

        You need to remember Carsales, like a dealer, are buying to resell. If they bought at market value they wouldn't make a profit on sales.

        • sexymrdaniel on 14/05/2022 - 18:36

          Very true. I’m not sure what kind of margin dealers expect to make with their operating costs, so maybe this isn’t right the way to gauge the value.

      • Daddy on 14/05/2022 - 18:34

        yep, the car market has dried up. Had a friend on FB last week post two cars she was thinking of buying and wanted a friendly opinion, the next day she went in to get the one she decided on and it was already sold that morning. she posted "The guy said cars are being sold as soon as they are listed and that any more are at least 4-6 months away on order"

  • Daddy on 14/05/2022 - 18:21
    +10

    In regards to negotiation, I had a POS Jeep that I valued at $500-$600 just because it was still licensed. I knew if I posted it for that price I would get a tonne of annoying lowball offers. I posted it for $2000 and had a buyer come look at it, point out all the shit that was wrong with it that I knew about, and then offered me $1000.

    I said I had to ask the wife, walked inside, congratulated myself to my wife, then walked out with a sad face and said "mate, my wife just wants me to get rid of it, so I'll sell it for $1000"

    I have also advertised things at less than what I thought they were worth just cause they took up to much room and still got lowballed.

    So just decide how bad you want it and how much you would be happy to buy it for based on the average selling price across FB marketplace, gumtree, and whatever is local to your area.

    • Daddy on 14/05/2022 - 18:25
      +1

      But for the sake of getting "the bargain" offer 5-10% less. You can always then pay the asking price if they refuse your offer if you still think it's a good current market value.

      (automated market values are rarely accurate to the current avg pricing so make your own judgement based on your own current pricing research)

      • sexymrdaniel on 14/05/2022 - 18:45
        +1

        Ahh, I’m sure people don’t pay the listed price of a private car sale more often than not. So the seller may be listing higher than they were hoping to get to attract genuinely interested buyers who aren’t just looking to lowball everywhere and see what sticks.

        Sounds like the best way to go is come up with a price I’m happy to pay and start the conversation.

        Thanks for the help.

  • cashless on 14/05/2022 - 19:06
    +4

    If you’re going to spend up to $20k on a high mileage Eurocar like GTi, you could get into trouble unless you know what you’re doing. At that mileage a lot of things can (and will) go wrong. It would certainly need a full proven service history. Timing belts would have to have been replaced.
    There are a number of things you would need to look out for.
    If you’re new to this game either take someone along who really knows their stuff & still have an independent mechanical inspection. Or choose another, more reliable, low km car.
    Full disclosure: Golf owner

  • pharkurnell on 14/05/2022 - 19:33

    You like power, get a motorbike and bank 10k of your 20k budget.

    • [Deactivated] on 14/05/2022 - 21:21

      8 - 9 k if he still needs a license, factor in lessons and the exorbitant cost of the license itself

      • [Deactivated] on 14/05/2022 - 21:29

        and the weather

        • pharkurnell on 15/05/2022 - 11:08

          I had a bike for 8-9yrs before having a car. Good rain gear and its fine. you dont dissolve in rain.

  • Euphemistic on 14/05/2022 - 20:15
    +4

    Don’t rely on carsales instant offer for your price. It’s a dealer purchase price designed to give them room for profit. Just like a trade in valuation is a lowball.

    Check out similar models advertised online - not just carsales, but scumtree and marketplace. Remember that most listed prices are optimistic and will likely drop a bit by negotiation.

    Pick a number you are happy with to offer any seller.
    Don’t lowball them (even if you think your offer IS market value) unless you are standing next to the car with cash available. IMO more than 20% off is getting close to lowball.

    I find it easier to pick a specific model to buy and then do lots of online searching comparing dealer and private pricing to get a feel for what I should offer rather than cross shopping a bunch of different vehicles trying to find something that fits my budget. This may mean testing a few at dealers (even just sitting in them and not driving) before making up my mind what model I want.

  • lgacb08 on 14/05/2022 - 21:32
    +2

    Jeez, I'm surprised at your taste, a 11 year old VW will suck your wallet dry soon. Even your positive comment on the astra puzzled me. If you want performance and a bit of reliability get a rex, mps or something similar. Just avoid European that's out of warranty.

  • donkcat on 14/05/2022 - 21:37

    You pretty much don't pay the asking price in private sales, the bottom line is selling a car privately is a PIA and most people can't be stuffed dealing with multiple buyers coming to check out the car just to sell it for an extra 5-10%. Having said that I never inquire about a car that I'm not prepared to pay the asking price if it ticked all the boxes, I would offer less but I would be prepared to pay the price if I was happy. The price I would offer would depend on if the car met my expectation of the condition based on how the seller described the car. In general I think 15% less is fine to offer, 20 is pushing it though esp if you can't find a reason you're offering that.

    The last car I sold privately the women didn't even haggle the price at all, I was really happy about that because the RWC required several things I didn't account for that cost me a bit of coin to get fixed.

  • nomoneynoproblems on 14/05/2022 - 23:06
    +1

    My advice and what works for me:
    1. See the car in person, it shows the buyer you’re serious.
    2. Dyor. Such as common issues on the cars and ask the hard questions. It shows you know what you’re talking about
    3. Put in a respectable offer. Everyone loves a bargain, but if you have inspected the car you’re interested in, noted 1 or 2 things and THEN put in an offer, you suddenly have a way in and go from there. If they don’t budge, then don’t pay more than you think it’s worth.

  • Overclocked91 on 15/05/2022 - 06:36

    Instant car value offer would be a "dealer wholesaler" price. So, you are going for $15,500, a few k above wholesale seems reasonable. Depends on condition etc. At the end of the day the seller can always say no.

  • larndis on 15/05/2022 - 08:06
    +3

    Am I the only one that uses Redbook?

    • apsilon on 15/05/2022 - 09:45
      +1

      Redbook was a bit questionable before but since covid, most prices are way out of what's going on in the market.

  • Brick Tamland on 15/05/2022 - 09:27
    +1

    I don't think you are going to insult anyone by offering a few thousand more than the instant offer. The instant offer is very enticing as you dont get the hassle of dealing with random people and getting a RWC and it also sets a good floor price of what the car is worth. Redbook is ok but I feel it undervalues the car. The Redbook private value for my car was the same as an instant offer.

  • 2esc on 15/05/2022 - 09:37

    It gets me people who are talking about liking powerful cars. You can't use that power on the road as we do have speed limits and if your cornering at speed your endangering the public plus 99% of the public don't have the driving ability to use that power. Most modern cars out there go quite well.

    • Brick Tamland on 15/05/2022 - 10:06

      I like powerful cars but I dont go over the speed limit or corner at speed. But any regard a 2011 GTI isn't that powerful anyway, its just a bit of fun.

  • sexymrdaniel on 15/05/2022 - 12:03

    Thanks everyone for the input. I did consider taking back my car and getting the wife something more reliable/responsible car since she doesn’t care as much.

    I think I decided I wanted something new/different and was looking for an excuse to get that (I’m 25, young, stupid and like fun cars). I agree with the general sentiment, that a 10+ year old euro car is probably not a smart decision.

    We’ve decided to get her an i30, Corolla or something along those lines and I take back the Astra. There’s plenty of time left for me to get a fun car (under warranty) in the future. Maybe after we’ve financially settled into the house we’re currently building for a few years.

    Cheers everyone, sorry you had to talk sense into me. I will be taking this negotiation advice with me for the new car though.

  • MontyMacaw on 15/05/2022 - 12:52
    +1

    Just because somebody is asking a certain price doesn’t mean the car is worth that. It’s a dynamic that people get hooked into. Just because the asking price is X doesn’t mean that you should pay X or X less a discount. The market decides. You need to compare the market. Carsales.com.au is a great place to get an idea of the value. Look at the difference between dealer cars and private cars. Then except in exceptional circumstances focus more on the private sales and negotiate from there. Private sellers are wanting to get rid of their cars and don’t have a huge lot full of them. Private sellers can always sell to a dealer and they would get a lot less than the dealer price because the dealer has to dress the car up for better presentation and put on their markup. Also check out how long the car has been listed. That could be an indicator of the demand for that car at that price.

  • Mattttttty on 15/05/2022 - 13:42

    I haven't read all the comments above, but check out

    Redbook.com.au

    For a solid guide to prices on used cards, use that as a basis to haggle…

    • MontyMacaw on 15/05/2022 - 15:11
      +1

      Except Redbook does not take into consideration the out of whack supply and demand equation we have today. It would make a good bargaining point however.

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