• Used Car Sales: Facts about the Sticker Price

    Sticker prices can be complicated, especially on used car sales. New cars are usually shipped with stickers from the manufacturer, but what about used cars? How do the dealers figure out the sticker prices for those? All dealers are different, but here are some things to look for.MSRPThe suggested price set by the manufacturer is called the MSRP. With used cars though this can be tricky. Since the manufacturer has nothing to do with the retail price of the vehicle once it’s no longer new, if you see this term on the sticker of a used car it usually refers to the price the dealer is asking. Negotiations
    Sticker prices are almost always negotiable. There is usually less of a cushion with used cars than there is with a new car. Dealerships purchase used cars at auction, get them from lease returns, and sometimes in fleet returns. The price margins they pay for these are usually higher than the margin for a new car. So while you can generally negotiate the price on the sticker as much as a thousand dollars on a new car, don’t expect that kind of break on a used car.Fixed Price StickersSome dealerships, like Carmax, offer no-haggle sticker prices. This means their sales personnel aren’t working on commission and the price is the lowest they can offer. This is important to many people because it allows you to know exactly what you are getting without the hassle of the negotiation process. Understanding how the dealerships come up with the sticker prices on used car sales will help give you the upper hand when you go to purchase a used car.