Buying A Used Car From A Dealer Or Privately – Which Makes More Financial Sense?
Buying a used car should be a fun, exciting point in your life. Unfortunately, it can often be a daunting experience that leaves you wanting to pull out some of your hair. You need to remember that you are purchasing the car, so the final choice will always be up to you.
It is highly suggested that you check the used car you are interested in. Drive it on the highway and in traffic, and always have a professional mechanic you trust inspect it thoroughly. The one nagging question you may have, or one of your family members has brought up, may be wanting to know if it makes more financial sense to buy from a dealer or a private seller.
Let’s dig into this a little more so you can make an informed choice.
Buying From A Used Car Dealer
Purchasing a used car from a dealer specializing in the process is generally the best way to go if you do not want to deal with the hassles that going through a private seller can bring to the table. A dealer will be in the business to sell, so they will know vital information about the car you may not know about.
It is always suggested that you do your research before buying a vehicle because it is essential to know which vehicle you want and what the problem spots are to look for when checking the car out. Let’s review some benefits you can get from buying through a used car dealership.
● Reputation – You can look up reviews and see how reputable the car dealership is, which will give you peace of mind when you make a deal with them.
● Selection – You will have numerous makes, models, and trim levels to choose from because a dealership will have an excellent used car selection to choose from.
● Financing – Getting financing for a used car can be hard enough, but if you go through a dealership the lender is more likely to authorize the loan. Plus, many car lots will have access to their own lender, which can be applied for on the spot.
Buying Through A Private Seller
Even though lenders and experts within the industry all state that you should avoid buying a used car from a private seller, there will be times when it is the only option available to you. The vital thing to remember when going this route is to never skip the step of having a mechanic you trust check it out thoroughly before you agree to hand over the cash. Which, of course, you will have to have in hand because a private seller will not take payments, even from the bank.
● Prices – Buying from a private seller will get you into the car with less money because they will follow a different blue book value than a dealer will.
● Bargaining – A dealership will be more set on their sticker prices than a private seller. The seller will list a high price that they would love to get, but more times than not, you can talk them down in price when you have cash in hand.
Purchasing a used car needs to be a task that is fun and exciting, not one that is stressful. The best way to ensure you approach the task correctly is to do the research long before you start looking. Keep in mind that many dealerships will have a mechanic of their own check the car out and complete any repairs that need to be done before it is offered up for sale.
A private person may be selling the vehicle to avoid paying for an expensive repair, so be on the lookout for a deal that seems too good to be true because it probably is. If you want to play it safe, always purchase your used car through an honest dealership trying to earn a good reputation, not a person trying to unload a lemon before it breaks down for good.