Buying a Used Car: Private vs. Dealership

You’ve decided to buy a used car — that’s great news! But have you decided how you’re going to pay for it and who you’re going to buy it from? While you may have money in the bank, giving a private seller a significant amount of cash isn’t always the best option.

The question of whether to buy from a private seller or a dealership raises another important question: Should I pay for my new car with cash or a car loan? As you’ll find out, there are advantages and disadvantages associated with both options.

If you’re thinking about buying a used car from a private seller, you should proceed with caution. There are some advantages to consider, but in general, you won’t have as much protection as a consumer.

You May Get a Better Deal

Because private sellers aren’t usually motivated by profit and don’t have business overheads to consider, you may well find a lower sale price for the same car on sale at a local dealership.

It’s a Fast Process

In most cases, buying a car from a private seller involves a quick inspection, a history check and the exchange of cash and documents.

It’s Usually Easier to Negotiate a Good Deal

Cars are assets for dealers, which means they have a pre-determined value below which sales agents can’t go. But private sellers may be persuaded to lower their price expectations significantly in exchange for a quick sale.

You’ll Need to Investigate the Car’s History Yourself

Reputable car dealerships usually investigate every aspect of a car’s history to give their customers peace of mind. Very few private sellers will offer you this level of due diligence.

You Can’t Be Sure About the Car’s Roadworthiness

Unless you or someone you know is a car mechanic and has the opportunity to fully test the car, you can’t be sure if it’s roadworthy and free from serious faults.

Your Legal Rights as a Consumer Are Limited

When you buy cars with motor finance or brokered car loans, you automatically benefit from a range of benefits that protect you should something go wrong with the vehicle. You don’t get these rights automatically if you pay for a car with cash.

The safest way to buy a used car is from a reputable dealership with a long track record of customer satisfaction. But there are disadvantages to consider, too.

You Have More Rights as a Consumer

If something goes wrong with a car bought from a dealer, or it wasn’t as described in the ad, you have legal options available to you. You get additional protection if you pay for the car with motor finance.

Critical Checks on the Car Are Carried Out for You

All the necessary safety, history and performance checks are usually carried out by the dealer — for your peace of mind.

You Can Get a Great Warranty Deal

A lot of dealerships are offering extended warranties, servicing deals, free MOT and free insurance these days. You won’t get any of these great benefits from a private seller.

They’re Usually More Expensive

Dealerships have testing, employees, overheads and profits to consider, which usually means their cars are more expensive than those available from private buyers.

Negotiating Better Deals is Difficult

Dealerships have to assign values to their assets, and selling cars below these valuations is very difficult — even for the most influential sales agents. That makes negotiating on price almost impossible in many cases.

Buying a used vehicle from a dealership with car finance gives you the best possible protection from defects, miss-sold vehicles and dishonesty. Buying a car represents a huge financial commitment for most people, so the more protection there is for your investment, the more peace of mind you’ll have in the long run.

Get the best possible car finance deal that saves you time and protects your investment with the help of a motor finance broker.