Dealership or Private? What to Know When Buying a Used Car

Buying a used vehicle throws up a lot of hidden surprises at times. No-one wants a surprise, especially with a used car but not all surprises are bad, some can be quite pleasant. Of course, some buyers never want to look at the used option as they’ve heard lots of scary stories about buying used. Fortunately, there are more safe ways to purchase vehicles and with a little bit of research, you can find a reliable vehicle. More details!

However, is it better to buy from a private seller or a dealership, and what do you need to know about buying used?

Private Sellers Don’t Usually Offer Warranty Guarantees Whereas Some Dealerships Do

If you’re buying used, it’s very unlikely you’ll get a 6 or 12-month warranty; however, some dealerships will offer a warranty guarantee for the vehicle. For instance, the dealership could write into the sales agreement that if the vehicle breaks down within the first 30-days, the dealership will repair it at no extra cost to you. Also, they usually offer a complete rundown of the history of the vehicle. With a private seller, you don’t really get any guarantees or warranties and it’s generally assumed the vehicle is sold as seen, with no returns or refunds. If you wanted bad credit car loans, private sellers would be trickier to work with too.

It’s Cheaper to Buy from Private Sellers

There’s no doubt that buying a used vehicle from a private seller is less expensive than buying at the dealership. Remember, dealerships have overheads and want to make as much as they can, so do private sellers, but they can afford to be more flexible. Most sellers want to get rid of their old vehicle to make way for a new one and will set a price around the Blue Book’s value or lower. This depends on the exact condition and how quickly they want to get rid of it. Sometimes, dealerships tack on additional fees as they cover their commission and admin costs, along with a few other fees. Of course, that doesn’t always mean private sellers are best.

Private Sellers Tend To Be More Flexible On Price but Dealerships Have Less Paperwork

Buying used can be expensive too and most people don’t have thousands of dollars to handover when they buy the car. Sometimes, they will put a down payment down to secure the car and then make monthly payments. Unfortunately, some dealerships will run a credit or background check to make sure you’re a reliable buyer. Some may not accept bad credit car loans and may refuse your application. On the other hand, private sellers won’t always care about your history as long as you’re able to make monthly payments – if that was your agreement. Of course, there’s more paperwork with private sellers than with dealerships.

Buying a Used Vehicle Is an Important Choice

Buying a used car can be a smart and cost-effective option, but it’s not without its pitfalls. Private sellers and dealerships offer many advantages and disadvantages. Which is better? It depends on your financial state and the vehicle you want. Sometimes, dealerships are able to offer a larger range and will do what they can to find something suitable within your budget. Then again, private sellers could be more flexible on the purchase price. Credit history and how much you can afford to pay per month may also be taken into account. Bad credit car loans may not always be accepted by all dealerships, so it’s worth considering your options. For more information, visit: