This list of all the pros and cons of choosing a private seller over a dealership will help you in making the right choice when buying a used car.
Purchasing a car for the first time is one of the most significant financial decisions you make in your life. Once you decide that you need a car, the next step is to determine whether you need a brand new car or a used car.
Even though the idea of owning and driving a brand new car is exciting but buying a used car boasts numerous benefits. Firstly, it helps you in saving a good amount of money. Secondly, the used cars have already faced the huge first-year depreciation.
Thinking of buying a used car? Finding it hard to decide whether to go for a private seller or a car dealership? Here is a list of all the pros and cons of choosing a private seller over a car dealership.
Private Seller Vs. Dealership – Pros and Cons
To make the right decision, you must consider all the factors of differences between a dealer and a private seller.
Pros
Lower Price
Choosing a private seller means you are going for an affordable option. The reason behind is the fact that a private seller does not have to pay reconditioning of vehicle, sales rep, and the administrative costs. These are the costs that add up in the vehicle cost at a dealership.
Less Hassle
Unlike a car dealership, a private seller does not engage in high-pressure selling. The typical tricks and tactics that you might face at a dealership are certainly not present in a car deal with a private seller.
Quicker Deal Finalization
At a dealership, a dealer will delay the finalization of the deal to achieve the best possible price. While a private seller tends to close a car deal quicker than a dealership. They are willing to close the deal as early as possible when they find the right buyer. Closing a deal quicker may help you get a car at a much lower rate.
Cons
Vehicle Selection
The first factor to consider is the vehicle selection. Whether you are looking for a used car or a brand-new model, a car dealership offers a wide range. Not only do these dealerships provide a lot of options, but they also offer a variety of upgrades. The biggest problem in the case of private sellers is to locate a seller selling off the model you need.
Payment Options
The availability of different payment options at a car dealership will help choose the option that suits your financial condition. In-house financing and leasing are the two payment options that car dealerships offer. These options will help you stay away from bank financing. When purchasing a car from a private seller, there is only one payment option, and that is a full in-cash payment. It is not easy to save an amount enough to pay for a car in full-price. Therefore, when you plan to buy a car from a private seller, make sure you have enough savings. It will also completely disrupt your financial because a car does not come cheap.
Reputation
Car dealerships have a reputation to maintain. If a car dealer sells off a faulty car, it may completely ruin its reputation. When buying a car from the dealership, a car dealer will try its best to satisfy you. In some cases, the buyers may get a manufacturer’s warranty from a dealership. All the pre-owned cars at dealerships are certified and checked thoroughly. A private seller provides no such guarantees. Once you pay for it, you are stuck with it.
Tips to Carry Out a Safe Purchase by Choosing a Private Seller
Here are some tips that will help you in effectively dealing with private sellers.
Never Proceed without Research
It is a tough challenge to find a private seller that is selling the model you are looking for, that too in your budget. Meet different sellers, and do your homework to get yourself a good deal.
Do Not Forget to Ask these Questions
Ask them if they are the original owners of the car or if there are any liens on the car. Moreover, ask them about any past accidents the car has gone through, or any significant repairs, and the reasons why they want to sell their car.
Test-Drive and Inspection
Taking the car, you wish to buy, for a test-drive is an essential step. Make sure you take it for a long test-drive to evaluate the performance.
A car is the second most expensive thing you buy. It comes right after a house. Make sure you invest in the right place. Thoroughly consider all your options and make the right choice, keeping in mind your finances and all other factors!