I am looking at a car for $5500...but at KBB.com it books for $4600?

Question

Do you think I would be able to talk the people down to $5000 cash....or possibly lower? I know that it really all depends on the person, but people have told me that if I pay in cash I can get a lower price.

Also, what kinds of things should I watch for in a used car. The car is a 1998 Honda Civic EX with 120,000 miles.

I will bring someone along to look the car over, but someone mentioned that I should pay to have a car dealership run a computer on it.....to check for any major problems.

wow this probably should have been stretched into a few questions

Answer 1

That Price seems way too high for me. Civics may be expensive now because of Gas Mileage. But then if they don't want to negotiate then I am going elsewhere. By the way why does he have Hard Price Point ? Is there anything Special Bells & Whistles on the Car ?

KBB isn't something you want to go by. You need to decide how much you can afford and weather the car's worth it. Looks like you are new to this game. There are good Dealers and bad dealers out there. I'd be sad to see you taken to cleaners by someone. I'd want you to do your homework. I am sure you can find other Civics or other cars for the Price you are willing to pay.

You mentioned that you will bring someone to look the car over. I don't think that's enough. Me, I'd take it to a reputable Mechanic of my choice (not Dealer's). Have him Jack it up and go over it with a fine tooth comb. It won't be that expensive.

Good Luck !

Answer 2

KBB is not law.  It's not even usually accurate.  

And Civics are in high demand now as idiots who bought big SUVs (and should have seen this coming) are desperate to trade down.  They ARE going to cost more now than whenever KBB collected (or more likely made up) their data.  

Also, KBB is just utterly terrible at accounting for regional variation.  Civics are worth more in some areas (example: Alaska) than they are in others.

edit:  If they are asking more money than KBB because of money they've put into modifications, and you do not know for an undeniable fact that it was quality work, quality parts, done right (if you did you would not be asking here, so you don't) then, first of all, they're probably stupid (mods don't generally add value, they usually reduce it) and you shouldn't buy the car regardless.

edit2:  No, it is not the basis people usually go by.  If it was you wouldn't see so many ads where people say "BELOW KELLY BLUE BOOK!"  You also wouldn't see collector cars/sports cars/cult cars going for over KBB.  They price it where they think they can sell it.  

And with fuel prices where they are, yeah, you can get over KBB prices for a used economy car.  Deal with it, or buy something else.

Answer 3

If the car is in the condition they said it was and you negotiate with them about the value im sure they will reduce the price. On the ODB scan of the computer that wont help a single bit unless the check engine light is on cause theres nothing to scan for lol

Answer 4

Civics will usually sell for around book value, kbb is usually a pretty bad guide to use, I know that is not what most people think, but on a civic it may be close.

It is really market value, if there are a lot of 1998 Civics for sale in your area and they are priced cheaper then this one then this person is asking to much.  On the other hand if all or most of the 1998 Civics in your area are $5500 then it is priced right.  Do your homework craigslist, eBay and autotrader and you will be just fine.  Good Luck.