Buying a car - private party or dealer?

Question

What are the pros and cons for buying a car from (1) private party or (2) car dealer?

Answer 1

when you buy from a dealer you generally get a decent warranty and the dealer will have already tuned up the car so it is in good running condition.
Buying from an individual can be less expensive but gives no guarantees on the condition of the car and you will not get a warranty unless the original manufacturers warranty is still in effect.

either way you decide to go you should still have the vehicle checked out by an independent mechanic.

Answer 2

I don't car what anyone says, even when buying from a dealer (except for that ridiculous 'certification' program which DOES garuntees a good-running car-albeit for a much higher price) there is no garuntee that the car will have had work performed on it that it needs. In other words, the old adage "buyer beware" still applies. The only thing I know for a fact is that private party sale is often more work for you, but the reward is usually a much better price than a dealer offers.
Even if a dealer offers a higher that average trade in value, they often make it back on the bloated price of your 'new' car or the bloated financing package that they offer. You have to expect that the margin on your new car is going to be thousands more than book value, because cars bought as trade-ins or from auctions will tend to be bought for much less than they are worth. In other words, you really CAN'T win.
The best thing to do is sell your car privately, or if you wish to trade, keep your trade out of negotiations until you have gotten a reasonable price for the car you want to buy. Tell the dealer you are selling privately until you have all the details settled, and then offer your trade. Remember, the dealer is going to make money on the car they sell to you, and then they will make money on the car you traded. The best you can shoot for is some kind of fairness. Take it from me, my 9,000 dollar used Accord has been given over 3 thousand in repairs, and I see used cars on the lot everyday with fresh tires, but ready for exahust, brake, and other work likely to be needed in a year or so.

Answer 3

Look, the dealer spends close to $700 average on every used car they sell on their lot to update and bring up to drivable standard. This gives you some assurance on the dependability, reliability and overall upkeep of the car. Similar maintenance performed by a private party will be twice as much. The dealer also has quite a lot of links and reputable lenders on tap to finance the vehicle. They also have to sell the car with a clean title and a credible car history for it to be financed. This will insure the car isnt a piece of junk. The dealers name is on the line and they will not spoil it by selling you rubbish.

Private sellers will perform maintenance they feel necassary which can leave out many crucial checks. They will probably demand less but you will have to do your own research on the title and history. You will also need your own lender. They might have aftermarket parts or accessories that can either help or hurt the value as well. Its a little risky spending money on the street when you dont know the person selling or his/her credibility.

Dealer cars might be a little more than on the street but come with their own advantages. You have a little more assurance and might even land a free warranty if you negotiate.

Answer 4

Cudos to you for beaing weary to begin with, just by asking on Yahoo you've at least taken a step or two from getting ripped off.

You are at risk with either a private seller or dealership of buying a car that's not up to standards so to speak.

Most dealerships will inspect the cars before they sell them, but this doesn't mean that they repair everything that needs repaired.

At my former job as a service manager of a mult-line dealership I've seen numerous vehicles we inspected that needed repairs but the used car sales manager would'nt authorize these repairs.

But as a general rule, anything that was a major safety issue was either repaired, or the vehicle was sold at auction or to some other wholesale source.

The advantage of a dealership is that if something goes wrong, you at least have someone to complain to. Not that they will always correct the problem. But you do have some options such as filing a complaint with the bbb, speaking to a general manager or owner etc.

With a private seller you have very few if any of these options.

You'll get a better price with a private seller than a dealerships, but as mentioned above, at a greater risk.

Dealerships themselves are not always so honest either, they will attempt to add options you don't need, such as window etching and even some add on paint sealants, undercoatings etc, not just new but used cars as well.

If you know what to look for and how to look for those items that may cause problems then you can at least feel comfortable about shopping for a used car, rather it be a dealer or private seller.

For financing you may consider a local credit union or bank rather than a dealership, they typically have lower interest rates.

Good luck with your search.

Jerry
http://www.usedcarwise.com

Answer 5

Buying from a private party.
Pros: Okay to buy if you know and trust the owner.
Cons: Otherwise you are buying a car As Is.
No warranty on car.

Buying a car from a dealer.
Pros: The dealer must disclose all knowledge of the
car.
Get at least a 30 day warranty.

Answer 6

Buying from a private party will be cheaper but then at the same time you don't know what the car has been through or what has been done to it...buying from a dealer you don't have to worry about nothing because if it's a pretty big dealer they should have alerady prechecked the vehicle to see if there's any damage or accidents in the past so you're getting your money's worth..just financing it will be the expensive part if you don't have good credit.

Answer 7

When you buy from a private party 1) they dont have a selection of cars, they have one car, so you usually end up going to who knows how many peoples houses to find the right one. 2) You have to take care of the DMV paperwork, title transfer, smog if neccesary, new pink slip etc. 3) you usually dont get a warranty or any type of guarantee from a private sale, If the car breaks down while your driving it home, you cant take it back to the dope who sold it to you.
When you buy from a dealer 1) You get somebody who sell cars for a living with no emotional attatchment to any of the veh.'s for sale. 2)The dealership takes care of all DMV transactions. 3) Depending on the year of the care most dealerships warranty the veh. for at least 30 days with the option of getting an extension on the warranty. 4) A dealership will help you to finance your purchase, Joe Schmo wont.
Too many people a worried they will get taken advantage of at a dealership so here's the rule to go by. If you can afford it and you like the vehicle you bought, you didn't get taken advantage of.

Answer 8

I would buy from a private party, if you buy from a dealer you could end up spending several thousand dollars more then you would if you buy from an individual...unless the dealership is offering you a warrenty which the usually dont on used cars. You will save lots from a private seller

Answer 9

dealer: pros: car has been fully reconditioned and all maintance has been performed.guaranteed in excellent mechanical condition..carfax available free... Bad: you'll be paying much much more for the vehicle from a dealer.

private: no guarantee on the mechanical condition..usually in OK condition compared to buying froma dealer..pay alot less then dealer prices...

Answer 10

private party you will get a better price if you are buying. do a vin check on any used car you get. you can get it done at carfax.com. it cost 20 or so