Should You Buy From A Used Car Dealer Or Private Seller?

There are several benefits to buying from a used car dealer rather than a private seller. Many people are tempted to use their local classifieds instead of visiting a lot because they are afraid they will be pushed into a bad sale or will get a raw deal. Not all dealerships are full of vultures, however, and a certain segment of buyers will benefit more from their services than they would a private seller.

Legally, a used car dealer has less of an incentive to pawn off a bad vehicle. If they do sell you a lemon, there will be repercussions. Any vehicle you see on the lot will be required to meet a certain safety standard, and by law any problems must be revealed before the sale. This doesn't mean that the vehicle hasn't just been temporarily patched up and might collapse a month into driving it. It is, however, much less likely for a buyer to be overtly ripped off. Many businesses must already fight inherent low public opinion and don't want to tarnish their reputation within the community to make one sale.

The main reason why most people choose lots over private sellers is obviously financial. When you see a private seller, you'll be required to pay cash up front to take the vehicle home. Few people have that kind of money lying around. A used car dealer will take a down payment and then help you finance a loan through their business so that you can make monthly payments. If you do have cash to buy a vehicle, that doesn't necessarily mean you should automatically choose a private seller. While generally buying privately means a cheaper price, at a dealership a cash buyer will get a nice discount as well as some warranties, depending on their negotiation skills.

One problem that few people fail to realize is that private sellers can also have difficult and pushy personalities when it comes to unloading their vehicles. You may even encounter some who refuse to allow you a sufficient test drive, are not willing to negotiate, and become argumentative. Because owners can get personal about their vehicles, it's always wise to bring a friend with you. A private seller also has no obligation to reveal any mechanical problems, and may not even be aware of them. If you do choose to buy privately, remember to have a trusted mechanic inspect the vehicle for any problems before committing to buy.

There are times when buying directly from the owner is clearly the better option. If you know the person well, such as a family member or friend, you may have had experience with the vehicle and know what it is worth. Buyers seeking classic or hard to find cars, vehicles to use for projects, or those with budgets $5,000 or less should spread their search wide and not limit themselves to a used car dealer as they won't carry these. There are also a few certain models that are so widely available and popular that a private sale will garner a much cheaper price.