Where to Buy a Car

October 04, 2016

If you have been following any of my posts, you probably know that my husband and I found ourselves unexpectedly on the market for two cars, following two car accidents. (I will confess I was not exactly heartbroken that my husband’s 1997 Honda Accord with 312,000 miles was totaled.) As we started researching cars, we explored the possibility of using either a dealer or a private seller for the car sales. We went with an online dealer for my vehicle because that is where we found the vehicle I wanted and went with a private seller for my husband because the seller had the best asking price. Ultimately, we had good experiences with both, so if you are in the market for a new car, consider the pros and cons of both options so you can make the most well informed decision:

Dealer Pros:

  • Some dealers offer warranties on the vehicles, which may protect you if something unexpectedly goes wrong. If you are a worrier, this extra protection may be enough for you to choose a dealer.
  • Generally, you may have more legal protection working with a dealer. If you have a problem, you have the business as opposed to an individual to formally complain to. In some instances, dealers have more stringent lemon law requirements than a private seller.
  • In many cases, the vehicles have already been inspected and repaired, if needed. With a private sale, you are typically on the hook for repairs.

Dealer Cons:

  • On average, the cost of a vehicle is higher at a dealer. There is also less room for negotiations.
  • On top of the higher cost of the vehicle, there are typically extra fees you would need to pay. I about fell over when one dealer wanted to charge a $700 fee for processing a few pieces of paper that took me 20 minutes to do.
  • Some find car salesmen overbearing. I don’t think I have to explain this one. It’s pretty much a cliche.

Private Sale Pros:

  • If it is a one owner only vehicle, you may be able to find out the entire history and maintenance of the vehicle beyond what Carfax or Autocheck may have documented.  We were pleasantly surprised by how many people kept all of their maintenance records. If you like personally knowing the history of your vehicle, private sellers can make the sales process easier.
  • Oftentimes the vehicle costs less since many sellers use websites like Kelly Blue Book to price the vehicle. In most cases, there are also no additional dealer fees. If you have a limited budget, this may be an ideal situation. Keep in mind, you still may have other fees to pay like taxes, registering the vehicle, title change and tags. Check with your local government office for more information.
  • There are usually no pushy sales people. I found that in many cases, a private seller wants to get rid of their vehicle and hopes to make some money whereas a dealer’s sole focus is a profit. Personally, I found many of them hated the sales process as much as I did.

Private Sales Cons:

  • If you get a lemon, it is a lot harder to fight when you bought from a private seller than a dealership. Private sellers generally aren’t bound by the same lemon laws as dealerships. You are on the hook for repairs.
  • In many cases, you won’t be able to leverage your trade-in. Most private sellers want cash not a car. If you have a trade-in, then your best bet may be a dealer.
  • You have to do the legwork – transfer the title, register the vehicle, pay the taxes and get the emissions. This paperwork is not hard, but if you don’t want the hassle, a dealer can do most if not all of it for you .

I will be honest. Doing a private sale was a lot of work between searching for vehicles, checking to see if it was still for sale, getting the Carfax reports, and coordinating not only our time but the seller’s time. But if you can handle the work, you can find amazing deals online. If you like the comfort of knowing that if sometime goes wrong, you have a company to turn to or  if you have a trade-in, then a dealership may be a consideration. Ultimately, you have to take the time to explore both options to help you make the best car buying choice for you.