OBO stands for "Or Best Offer." It’s a common term used in car listings to signal that the seller has set an asking price but is willing to consider lower offers. This opens the door for negotiation, making it a key piece of shorthand to understand when you're buying or selling a vehicle.
When a seller prices a car at, for example, "$15,000 OBO," they are stating their ideal price is $15,000, but they are flexible. The goal is to attract serious buyers who might be hesitant to engage if the price seems firm. For you as a buyer, "OBO" is an invitation to make a reasonable offer below the listed price. However, the key is to be realistic. An offer that is too low might be ignored. A good strategy is to research the car's market value using sites like Kelley Blue Book (KBB) or Edmunds and base your offer on that data and the vehicle's condition.
From a seller's perspective, using OBO can generate more interest and leads. It’s a way to test the market. If you get several offers clustering around a specific price, that’s a strong indicator of the car's true market value. The final selling price will be the "best offer" that the seller is willing to accept.
Here’s a quick reference table showing how OBO might work in different scenarios:
| Listed Price | OBO Meaning (Seller's Mindset) | Realistic "Best Offer" Range | Key Factor for Acceptance |
|---|
| $10,000 OBO | Hoping for $9,800 - $10,000 | $9,500 - $9,800 | Quick sale, buyer is serious |
| $25,000 OBO | Expecting $24,000 - $25,000 | $23,500 - $24,200 | Competitive market, vehicle condition |
| $5,500 OBO | Willing to accept $5,000 | $4,800 - $5,200 | First reasonable offer, as-is condition |
| $18,500 OBO | Flexible around $17,500 | $17,000 - $17,800 | Length of time listed, number of offers |
