I am buying a used BMW and want to know how to negotiate the price?

The BMW is listed at $27,000, it's a 2004 and i will be paying cash. I would like to get the price down to $25,000. Any suggestions?

I am buying a used BMW and want to know how to negotiate the price?nortonantivirus

Information is your best tool.

Use Nada AND Kelly Blue Book to find prices for that model. Your dealer has both books in his desk drawer and knows which one quotes the higher price, which is the one he will be using.

Also get a Car Fax report. Recently I was looking at a Volvo for my son. They wanted $8K for it, the Car Fax said the car was registered in New Orleans during Katrina. We went in and offered him $500 for the thing, he laughed at me and we went on our way... my son told me that 30 days later he saw it on the lot reduced to $1500.... I guess other people were using Car Fax as well.

Paying Cash is not the bargaining chip it used to be. Most lots now use bank credit to buy the cars they want to sell to you. They get "incentives" from their bank for every loan the dealer writes for them. You offer cash, the dealer doesn't get his "incentive" for that deal and your cash offer ends up costing the dealer money.

If your research on the vehicle suggests that you can purchase the vehicle for $25K, then offer a lower price. Understand that a good sales manager already expects you to offer a price in a way that if you "split the difference".... you actually get what you want. So he will expect you to offer $23K. If he has almost no money tied up in the car he may say, "well I can't do that.... how about we split the difference at 25K" and you get what you want....however that would be if he had no money in the car.