Buying from a Dealership vs a Private Seller
Whether you are looking to upgrade and get your dream ride, or you simply want a commuter for the whole family, one key decision will affect the whole buying process: buying from a dealership vs a private seller? Both options have their perks and pitfalls. And if this is your dilemma, you have come to the right place. Here’s a complete breakdown of everything you need to know about buying from a dealership versus a private seller.
Key Takeaways: Buying from a Dealership vs a Private Seller
- The benefits of buying a car from a dealership vs a private seller includes having access to professional salespeople, easy trade-ins, wide selection of vehicles, and financing options.
- The cons of buying from a dealership is that prices tend to be higher and they might employ pushy sales tactics.
- Buying from a private seller gives you more negotiating power, especially when buying in cash, and not having to worry about hidden fees or additional charges.
- The downside to buying from a private seller is the lack of legal protection when buying your car and handling the paperwork on your own.
Pros of Buying a Car from a Dealership
Professional Salespeople and Reliable Cars
Like other businesses, car dealerships operate on trust and loyalty from repeat customers, as they have a reputation to protect. They have strict guidelines to ensure all their units are in good condition. Most dealerships provide detailed information, the car’s history, and other valuable information about the car’s past. This includes accident reports, the number of previous owners, and issues with the vehicle.
Moreover, most dealerships provide certifications and warranties, so you are less likely to get a lemon or be scammed.
Trade-Ins Are Made Easy
One big benefit of buying from a dealership is the trade-in. For owners of older cars, most dealerships offer trade-ins in exchange for their current vehicle, which can knock a significant chunk off the price of your vehicle.
While you can get a couple more bucks selling your vehicle alone, it’s time-consuming. Trading in at a dealership will simplify things.
Wide Selections Means More Options
Car buyers like to keep their options open when shopping around, and they check out multiple cars before making a decision. It takes a lot of legwork to check multiple cars with different sellers. Dealerships, on the other hand, will always have plenty of options for buyers. Most dealerships offer both brand-new and used vehicles all in one place.
Financing Options
Dealerships partner with banks and lenders to help buyers secure financing for their vehicles. The good news is that anyone, even those with less-than-perfect credit scores, can get a car. Plus, they also help buyers find solutions for their financing options, not to mention they offer a fast and convenient buying process.
Legal Protections
Dealerships will disclose major issues with the vehicle to you and handle all the paperwork for the release of the car, including title transfer, registration, and taxes. This means no hassle and stress on the buyer’s part.
Cons of Buying a Car from a Dealership
Pushy Sales Tactic
It’s a common problem among dealerships to be pushy to their customers. After all, that’s how they make a living. However, this can feel overwhelming for customers, especially to those who are simply shopping around for their options. Moreover, it’s a common problem that some salespeople upsell extras to their potential buyers to squeeze out more money from the latter, including paint protection, service packages, and extended warranties. All these things can add up.
Higher Price
Dealerships charge more than private sellers for many reasons. They have larger overhead expenses for housing multiple vehicles and commissioning their employees. Moreover, you also pay for the convenience, warranties, and even the showroom experience.
Pros of Buying from a Private Seller
Low and Negotiable Price
Prices from private sellers are not set in stone. They keep the car in their garage, which means they don’t have employees to pay or overhead costs. Thus, their prices are cheaper than those in the dealership. Plus, since they want it gone, you can also negotiable the price.
No Hidden Fees
Aside from selling cars, dealerships make money in many ways. These include processing fees, documentation fees, and even advertising fees, which can add up. These fees are non-existent in private sellers, as the price you agree on is usually the final price of the vehicle.
Niche Market and Unique Finds
If you are looking for a specific car, make, model, or color or if you are into rare models, you will likely have an easier time finding it in a private seller market. Most dealerships don’t sell rare or classic cars.
Cons of Buying from Private Sellers
No Protection
You cannot expect private sellers to offer warranties, as they are selling their cars on an “as is” basis. They are not bound by strict laws; thus, if something goes wrong after a couple of days from purchase, you are basically on your own. Buying a Mopar extended warranty can be a good protection when buy a car from a private seller, ensuring you can get maximum coverage.
DIY Paperwork
Some sellers assist buyers in the paperwork department, but in most cases, buyers are responsible for handling all the paperwork, from transfer to registration and taxes.
Buying from a Dealership vs a Private Seller: Conclusion
Indeed, buying a car can be exciting, but it comes with lots of responsibilities, too. If you want a hassle-free transaction and you have the budget for it, then buying from a dealership is a good way to go. But if you have a specific car in mind from a specific seller you like in the second-hand market and you understand fully all the things that come with that specific car, then buying from a private seller is not entirely a bad thing.
The best thing you can do with your hard-earned money is to do your homework. Research and know everything there is to know about the car that you want. Don’t rush into things.
