Used Car Dealers or Private Sellers: Where Should You Buy Your Used Vehicle?

In an effort to cut costs and save money today, more people are buying used vehicles instead of new ones. According to the National Automobile Dealers Association (NADA), in 2013, 25% of trade-ins were for used vehicles. Used car dealers were the primary source of purchases for these vehicles, meaning fewer people bought from independent or private sellers. It’s true that you can save money by buying from a private seller, but what are other pros and cons to consider before you buy? Here are some things to keep in mind, whether you’re visiting a dealer or a private seller.

The best reasons to buy from a dealer are:

– They are required by law to certain sales procedures. You are less likely to be scammed or sold a lemon. Although most states have Lemon Laws to protect citizens, it is still burdensome and time consuming to purchase one.

– They usually offer guarantees, even on used vehicles.

– They usually offer financing.

– You can easily contact them if problems arise.

– Your vehicles are inspected by certified trained technicians.

– Some offer Certified Pre-Owned options, meaning the manufacturer or another trusted party has ensured certain standards are met prior to resale.

– You can get assistance from them with titling and registration. You will not have to make an additional trip to the DMV.

– There are a variety of vehicles in one place and you have more space to negotiate the price with the sellers.

From this list, it may seem that buying from the dealer seems to be the best option. However, you should also keep in mind the positive side of buying privately. As in any situation, it is better to collect all the data before taking the plunge and buying. For private purchases, these are the advantages of what they could offer.

– You can haggle with them and get better results. There are more chances that you can get closer to the price that fits your budget.

– They do not have a staff of salespeople who work on commission, so there are no high-pressure sales pitches. However, keep in mind that this could also be a drawback, as they are also not trained professionals. They don’t know everything there is to know about the make or model of the vehicle like used car dealers do.

– They usually have lower starting prices.

– They can give you a better history of the vehicle and a better idea of ​​what has happened under your ownership.

Now that you know the advantages of buying from private sellers, here are some of the disadvantages of dealing with them.

– You will probably be dealing with someone you don’t know at all and who is not subject to the rules of the Federal Trade Commission.

– There are no warranties on the vehicle. You will buy the vehicle “as is”.

– Private sellers will not offer any commercial options.

– There are no financing options: it is cash and carry, or you will have to request a loan from your bank.

– You will need to file all finance and title related documents on your own, and you will have to make an additional trip to the DMV to do so.

– You are in the seller’s time for when you can take a test drive and take a look at his vehicle.

Make sure you are armed with all the facts to buy from used car dealers or private citizens. Then decide which one is more logical and fits your needs. Again, there is no right or wrong choice, but if you make an uninformed decision, you could have a vehicle in your hands that you can’t drive and can’t get rid of either.