Used Cars: Individuals vs. Dealerships

When buying a used car you have the choice of picking between a used car dealership and buying from an individual selling a car. Both options have their advantages and disadvantages. Purchasing a used car is a large investment and therefore requires a well thought out plan before buying. Knowing all of your options, and the pros and cons of each, is important.

A used car dealership offers many advantages. One important advantage is that you are dealing with an established business. If you buy a car that turns out to have many problems, you have a place where you can return to and make a complaint. A used car dealership wants to maintain a good reputation. A dealership wants your return business and the business of your friends.

In addition to these factors, a used car dealership offers the advantage of being able to assist you in financing options. Because it is their business, they are very familiar with the financing options and know the ins and outs of financing. Another factor is their large selection of vehicles. Most used car dealerships also perform a certain level of inspections on the vehicle before they sell it. Finally, you can typically be assured that a dealership is selling a car that is completely legal, and that the title has been checked. You will not find stolen vehicles at used car dealerships.

There are disadvantages of buying a car at a used car dealership. The primary disadvantage is that you do not get to find out the history of the vehicle. You do not know if a responsible adult or a teenager owned it. Also, you do not get to know if it had been involved in a wreck, or had other problems. Used car dealerships sometimes do not like to haggle over price.

Buying from an individual can be worthwhile. Buying from an individual allows you to find out more about the history of the car, including who owned it and how it was cared for. An individual seller may also be more likely to negotiate on the price of the vehicle. Sometimes a buyer can find a great bargain when purchasing from an individual. Sometimes people do not know the value of their car, or are eager to sell, and thus sell at a low price.

Disadvantages of buying a used car from an individual include some of the following. An overall vehicle inspection has probably not been performed. If you are unsatisfied with the vehicle, or it turns out to be a lemon, you will most likely have to go to court to try to recoup your money. Although a rare occurrence, it is possible to unknowingly buy a stolen car. The financing options that a dealership can offer are not available when buying from an individual. Finally, most individuals rarely sell cars, so their reputation is not as important to them as a business that sells cars everyday.

Explore all of your options when buying a used car. Look for the option that best fits your current needs.