advantages of buying used car for sale by owner vs dealer

There are two possible options when buying a used car, namely going through a used car dealer or buying directly from owner sellers. Each option has its own advantages and disadvantages, some of which are shown below to help make the decision of where to go for a used vehicle a little easier.

Advantages of Buying through Dealers

The main advantages of buying a vehicle through a dealer lies in their ability to check out a car and ensure its road-worthiness, and the fact that many dealers will offer some sort of warranty even for used cars. This does, however, depend on the dealer and it is important to check out their reputation before purchasing a car. In addition, dealers typically have a choice of cars all in one place, which helps if the buyer is unsure of what car he wants. Dealers are also able to arrange financing if needed.

Disadvantages of Buying through Dealers

Dealers typically have overheads, which results in their vehicles being much more expensive than those for sale by owners. Finance agreements arranged by dealers often have less than favorable terms - buyers need to be aware that it is often better to get a loan elsewhere. Dealers also often work on commission, meaning they will try to sell the most expensive car and arrange the costliest finance they can get away with. They also frequently know little about a car's history.

Advantages of Buying from Owners

Because owners do not have overheads in the same way as dealers have, while at the same time not being able to offer the same kind of warranties or financing, cars bought from owners are usually offered at much cheaper prices. Owners will also be able to tell a potential buyer much more about a car's history than dealers can. Finding suitable cars is not as difficult as it may seem at first glance, because there are many websites offering cheap cars for sale by owners.

Disadvantages of Buying from Owners

As briefly mentioned above, owners have no way - or interest in - providing warranties. There is also no guarantee that a car is as good as it may look. In other words, unless an owner is prepared to have a vehicle thoroughly checked over by a mechanic before it is sold, there is no guarantee that all is well. Buyers also have to rely on the owner's honesty with regards to history, etc. In addition, owners are also unable to assist with financing, so the buyer will have to have the money to buy a car readily available.

Essentially, a car owner selling a vehicle usually proves to be far less expensive for the buyer than going through a dealer. Assuming that the selling owner is honest, the buyer will also be able to find out more about the car's previous history than when buying through dealers. Considering the available choice of cars when consulting the sale by owner websites, buyers are also more likely to find the exact car they are looking for from owner sellers.