Obviously like any other business, the dealer needs to make a profit. Typically a respectable dealer will offer or pay fair market value for their cars whether it be from a customer via trade-in, an auto auction, or another dealer.

Once a good dealer has purchased a car they will run the car through their shop to determine serviceability and ensure they are selling a quality product. There is a cost involved there and is added to the overall cost for the dealer.

A dealer will then typically hope to sell that car with a profit of 5-20%. For example:

On a $7500 car the profit may be set at 15-20%. $7500 x 20% = $1500 On a $25,000 car the profit may be set at 5-10%. $25000 x 8% = $2000

No two used cars are alike and you may have to pay more for the right car if it is rare or of superior quality, however, if you do your homework you will be able to ensure the dealer mark-up is fair.

A greater percentage of used vehicles in Canada are sold privately in Canada. They are sold by people with a knowledge and emotional attachment to the vehicle. this interment knowledge is what private sellers use to get more money for their vehicle. That’s why you often hear "that’s alright I’ll just sell mine privately”. Why would a private seller do that? For more money. A good Used Car Dealer will pay what they need to in order to acquire the right vehicles. No two used cars are alike and in order to get the better cars, dealers pay more at auction for them. Since they then run the car through their shop to determine quality and safety assurances this also adds costs which affect the price. Would you really want to buy a car that have not been through these checkups.

With a consumer you may be able to save some money as opposed to a dealer if the person really needs to sell their car which should make them more motivated. Beware this is the trap of the CURBSIDER that individual that pretends to be a private seller but is in fact an unlicensed dealer.  A dealer doesn't have to worry about the next payment due like a private party seller. They are in the cash and people business; they want to make a deal with you in hopes of getting all your business and can sell it for less because they are looking at the long term. The private seller’s main motivation is price and will sometimes hold out for a higher price if the car is rare or of superior quality.

If the seller still owes money on the car and the bank is holding the title, then you can proceed with the transaction and deal directly with the bank. Have the seller call ahead and make sure that the title is ready. After money has exchanged hands and the bank has been paid the remainder of the loan, the seller can sign the title over to you.

If the vehicle is registered in another province be worried. the seller should have registered it an would have to done everything including the safety. Once the seller pays off the loan's balance and are lease by the finical institution is provided to you then register the car .  After all the paperwork is complete, the last step is to relax and enjoy your new used car.

Example: Let's say you're interested in buying a used car with a private party sticker price of $5,000. If the seller sees that you're a serious buyer, then he may drop the price down to $4,500. Let's then assume you offered him $4,250 in cash. He's more than likely to take the deal.

Buyers might also run across steadfast sellers that won't budge from their asking price. In these situations, it's usually best to let some time pass before revisiting with a counter-offer. Consider paying their price only if you're fixated with the vehicle.

Example: Let's say you're interested in the same buying a used car with a private party sticker price of $5,000. You make him a reasonable offer and the seller sees you're highly interested in buying. He might use that as a bargaining chip in his own favor, and tell you that he has another offer on the vehicle that beats your offer.

The key is to go slow if you want to save dough in negotiating. If you lay all your cards out on the table too early, you'll get taken for a ride - and not a pleasant one - in your new car! Once you've wrangled yourself a final price, make sure your seller completes all necessary paperwork in a timely fashion.