Why Buy a Used Car from a Dealership vs. Private Seller?

If you’re thinking of getting yourself a used car, you have a couple of options. You can search online or in the local newspaper for a used car from a private seller, or you could go to your local dealership and check their inventory. Let’s look at some compelling reasons why you should consider purchasing a pre-owned car from a dealership versus a private seller.

Image via Flickr by AlBargan

You Get Documented Vehicle History

When you buy your used car, it’s important to learn everything you can about the vehicle’s history. You want to know things like how well it was maintained, whether it was involved in any accidents, or what parts were replaced. While a private seller may provide that information, you have to trust what they say about them. Dealerships have to provide full disclosure about any pre-owned cars they’re selling. They get their information from sources like CarFax or AutoCheck and can give you the documentation regarding the car’s history.

Most Dealerships Offer Financing

In most cases, you’ll need to pay the full amount of the asking or negotiated price when buying a used car from a private seller. It’s not always possible to come up with the full amount of money to give to the seller, especially if you’re buying a newer model or an upscale vehicle.

Many dealerships will work with you to finance your vehicle so you don’t have to pay all at once. The finance team at dealerships can work with your budget and credit history to get you the right package so you can drive your new pre-owned car home. If you’re looking to trade in your older car for a new used one, you may even be able to apply the value of the trade toward the car you’re purchasing from them.

Your Car Comes With a Warranty

When you drive away with your car after buying it from a private seller, you’re on your own when it comes to repairs and maintenance. Most dealerships offer some type of warranty for their used cars. Talk with the dealership about the type of warranty they offer, which could be full, partial, or limited.

When you look at a used car at a dealership, you’ll notice a piece of paper displayed in the window that’s called a Buyers Guide. The Federal Trade Commission requires dealerships to display this Buyers Guide. The guide shows what type of warranty the car has. If it doesn’t have any warranties, the Buyers Guide will say ‘as-is.

The guide should also list the percentage of the repairs the dealership will pay as part of the warranty. Keep in mind that the Buyers Guide rules over what’s written in the contract, so if the contract says as-is and the Buyer’s Guide says the used car has a warranty, then the car has the stated warranty. Having the warranty and Buyer’s Guide can give you peace of mind when buying a used car from a dealership.

Used Cars Have Undergone a Multi-Point Inspection

You can rest assured that reputable dealerships have performed a multi-point inspection of the used car you’re interested in purchasing. The qualified service technicians go over every section of the vehicle and repair or replace any parts to make sure it’s in good working order. When you get a certified pre-owned car from a dealership, you’ll know that the car comes in top working condition and has a pristine history.

Non-dealership used cart lots and private sellers aren’t required to give the car a proper inspection, so you may not know the actual working condition of the car. Buying a certified pre-owned car from a dealership gives you documentation of the car’s history, maintenance, and multi-point inspection.

Dealerships Take Care of Important Paperwork

The Department of Motor Vehicles bases registration fees on the depreciated value of the used car from the original Manufacturers Suggested Retail Price (MSRP). Used cars have a lower depreciation value than new cars, which is one reason why you pay less for registering a used car. If you buy a used car from a private seller, you’ll have to take time out of your day to go to the DMV office and set up the paperwork.

Most dealerships take care of the necessary paperwork at the dealership office so you don’t have to wait for hours to register the title in your name.

Dealerships Have a Reputation to Uphold

Dealerships want to earn your trust, loyalty, and business so you can build a lasting relationship and bring your car in for servicing when needed. Private sellers don’t necessarily worry about their reputation, especially because they won’t be responsible for servicing your car in the future.

When you buy a used car from a dealership and come out happy with your experience, it helps establish the dealership as a reputable source that you, your friends, and your family can trust. A dealership’s reputation means everything to their business, so they’ll do everything they can to keep their customers happy.

You Can Search the Dealership for Multiple Vehicles

Most dealerships offering used cars have a large inventory. Instead of searching randomly online for a used car from a private seller, you can go to the dealership’s website and search their inventory for one-stop shopping.

Once you find a car that interests you, whether it’s a make and model you’re actively looking for or one that catches your eye and fits your budget, you’ll get the information you want and need from the website. Then, you can schedule a time to stop by the dealership to see the car in person and take it for a test drive. Buying a used car from a dealership makes the process easy and convenient.

What’s your favorite part about buying a used car from a dealership? Are you interested in learning more about the benefits of getting your next vehicle from a reputable dealership? We’d love to know your thoughts. Feel free to contact us or leave a comment in the box below. When the time comes to buy a used car, give our team at United Chevrolet Buick GMC a call and we’ll help you find the perfect pre-owned car to fit your budget and lifestyle.