Private
Party vs. Dealership
When
deciding
where to
search
for your
used
car, a
private
party
and a
dealership
present
two very
different
experiences.
Many
people
may be
intimidated
by the
dealership
experience,
i.e.:
pushy
salesmen
and
negotiations.
But,
there
are
positive
advantages
going to
a
dealer.
Where
you go
really
depends
on who
you are,
what
your
budget
is, and
what
your
needs
are.
Here is
the low
down on
the two.
The
Dealership
The
benefits of buying a used
car through a dealer are
massive. There is often a
wide selection of vehicles.
They may even have a few
different models you are
considering, giving you an
upper hand in negotiations.
The used car dealer will
likely have suitable
availability, so you don’t
have to make plans around
someone else’s schedule.
Being able to finance
through a dealership is a
big plus. All the paperwork
is done right there, and you
may even qualify with weak
credit. As far as prices go,
you may find something
cheaper through a private
party, yet dealers often
have specials, likely to be
at the end of the month.
Certified Pre-owned cars are
vehicles for sale that have
gone under a multi-point
inspection, have had any
problems fixed before
entering the lot, and often
come with a warranty. They
can only be found at a
dealership, and give the
used car buyer a peace of
mind. The Federal Trade
Commission's (FTC) Used Car
Rule requires dealers to
post a Buyers Guide in every
used car they offer for
sale. When you buy a used
car from a dealer, get the
original Buyers Guide that
was posted in the vehicle,
or a copy. The Guide must
reflect any negotiated
changes in warranty
coverage. It also becomes
part of your sales contract
and overrides any contrary
provisions. Dealers are not
required by law to give used
car buyers a three-day right
to cancel. The right to
return the car in a few days
for a refund exists only if
the dealer grants this
privilege to buyers. Dealers
may describe the right to
cancel as a "cooling-off"
period, a money-back
guarantee, or a "no
questions asked" return
policy. Before you purchase
from a dealer, ask about the
dealer's return policy, get
it in writing and read it
carefully.
Private Party
When
buying a used car from a
private party you will often
find lower prices, as
dealerships must add on to
cover their overhead. Many
prefer a private sale,
because the negotiations are
low key, and they are not
dealing with a professional
negotiator. When getting a
used car privately you will
also have access to the
vehicle service records. If
not, then it is a good idea
to look elsewhere. Dealing
with just one person, and
meeting them face-to-face,
there will likely be a more
feeling of honesty, that the
owner will not cover up any
known problems. It is
important, though, to
remember that a private sale
may not always offer a
better deal. Buyers
sometimes end up overpaying
because they believe they
are getting the best price
from a private party. A
quick comparison would have
shown them otherwise. When
obtaining a used car this
way, there are no warranties
of any kind. It will likely
be an ‘as-is’ purchase. If
you have a written contract,
the seller must live up to
the promises stated in the
contract. This may be a bit
frightening for some, and is
certainly an added risk. In
addition, the buyers will
have to provide their own
financing or pay cash.
Buying a used car from a
private party is very
different because private
sellers are not covered by
the Used Car Rule and don't
have to use the Buyers
Guide. The car also may be
covered by a manufacturer's
warranty or a service
contract. However, these may
not be transferable from the
owner to you. The most
important step in buying a
used car from a private
party, is to have it
inspected by a professional
mechanic. Do this no matter
how sure the owner is that
there are no problems. The
mechanic may even uncover
problems that the owner is
not honestly aware about.
Doing this may give you
grounds for lowering the
price, or simply deciding
this is not a vehicle you
want. If the used car owner
refuses to let you take the
vehicle to the shop, first
offer to follow them there,
to assure them the vehicle
will be safe. If they still
refuse, then walk away. This
may indicate they are hiding
something.
In the world of used car
sales there are so many,
many options. Go with what
you are comfortable with.
Listen to
recommendations
or use
past
experiences
when
deciding
whether
to
purchase
the used
car from
a dealer
or a
private
party.
They
both
have
their
own pros
and
cons,
but
remember
their
one
similarity
– they
both
want to
sell you
that
car.