Research used car values at Yahoo! Autos . Then figure on settling on a price somewhere between retail and trade-in allowance. If it is a very clean low mileage vehicle, or a unique and pristine vehicle, the dealer will hold out for top retail or more, and if he doesn’t get it from you he’ll wait until the right buyer comes along!

The problem with a used vehicle is that you have no way of knowing for sure how much the dealer has invested in it! You can only guess! A good rule of thumb is to take the average trade-in value and add about $1000 for reconditioning, transportation and other costs associated with a car dealer buying a used car for resale. This should at least give you a “ballpark figure” to go on!

Make your initial offer $500 over this amount and go from there. Keep in mind that in most cases the salesperson has no authority to make the final decision on an offer. It’s usually the Sales Manager’s call, so don’t be afraid to send the salesperson into the manager with a low offer.

One more Very Important point! You should never buy any used vehicle without first doing a very extensive test drive, getting a Free CARFAX Record Check, and having a trustworthy mechanic look it over – on a lift – very carefully!

For more tips on buying or trading a used vehicle visit the Used Car Guide!