Buying a car privately vs Buying a car from a dealership

Should I buy a car from a private seller or should I buy from a car dealership?

Shop for Cars has put together a quick guide to assist you with your next car buying choice.

Buying from a car dealer

Easier buying process

We all know how hard it is to buy a car, there are so many things to go over and so much choice. Buying a car through a dealership offers a fast, easy, and smooth buying process. Dealers are competitive, they will go above and beyond to make sure you buy their car over others. As such, dealers are wanting to provide you with as much information as possible to make the buying experience smoother.

Dealers will let you know the ins and outs of every car they have in their stock. They will provide you with Car History Reports, registration papers and all other related documents.

Dealers also offer different car financing deals they have available through their finance providers. 

Warranty policy

One of the main benefits of a buying through a dealership is that dealers will provide you with warranty.

Before purchasing a car, it is always recommended to have a third-party motor mechanic assess the car. They will provide you a breakdown of the findings, what the cars condition is and most importantly the ongoing service and registration costs.

Buying a car through a dealership often provides a peace of mind for buyers as they are covered for any issues if they do arise during the term of the warranty policy. Privately sold cars do not provide buyers with a warranty policy.

Minimal room for price negotiations

One downside to buying a car through a dealership is prices are generally higher. Dealers have higher costs associated compared to private individual sellers. Dealers have a margin number they need to stick to in order to cover their operational expenses such as rent, staff and marketing.

Trade in

A great benefit for buying a car through a dealership is that some dealerships offer vehicle trade ins. Trading in your vehicle reduces your new car price and speeds up the sales process. Dealers need more stock, and you want lower prices, this is a win – win for everybody.

Buying a car privately

Room for negotiation

Private sellers are looking to sell their car as quickly as possible, as such they are often willing to drop the price. If the demand for the vehicle is low, you could pick up some cars at an unthinkable price. Individual sellers don’t have the hefty operational costs associated with selling their car that dealers have.

Cheaper loan

The further you negotiate the price down from an individual seller, the cheaper your loan will be. You could potentially save thousands of dollars on your loan repayments that would not be possible through a fixed sale price at a motor dealership.

No warranty

The biggest disadvantage of buying a car from a private seller is there is no warranty or guarantee policy on the car. If any problems arise after time of purchase, you will be responsible to fix it. There is no legal requirement for individual sellers to fix or repair after the transfer of ownership.

When considering buying a car privately it is recommended that you do a full car history check with the Cars VIN (Vehicle identification number). 

More administration work

When you buy a car privately you will need to complete all the required paperwork yourself. Paperwork includes transferring title and registration and paying the fees agreed upon.

Where Shop for Cars can help?

Shop for Cars is Australia’s first classifieds website for dealership vehicles only. Car buyers now have the chance to buy the cars directly from trusted and reliable motor dealers around Australia. With over 10,000 cars and growing, Shop for Carts is your one stop destination for everything cars related.

DISCLAIMER: This is all based on opinion please research and consult with all relevant parties to make the best buying decision.