Advantages of Buying from a Dealer vs. Private Seller
Advantages of Buying from a Dealer vs. Private Seller
Posted on April 8, 2020
The time has come again for you to purchase another car, but where do you go? Choosing a vehicle can be hard but deciding where to purchase the vehicle can also produce some challenges. In Canada, you can buy a car through a dealership or through a private seller. There are pros and cons to both options and depending on what you are looking for, it can be the ultimate deciding factor. Two main deciding factors before purchasing a vehicle are pricing and the vehicle’s condition. Below is an expanded explanation of both when it comes to dealers and private sellers:
Pricing
Price is a huge deciding factor when it comes to the purchasing of a car. To some, it may be the most critical factor due to budget restrictions. There is much to think about financially when purchasing a vehicle. Of course, when searching for a used vehicle under a private seller, the price is going to be lower than dealerships. However, with dealerships, you have the option to set up a payment plan, where most private sellers usually expect you to pay for the car in full, not offering the same financial plan options.
With private sellers, it can be easier to negotiate a price and get it for lower than originally advertised, especially if the owner is eager to sell. Most dealerships aren’t as flexible because they are operating under restrictions, however, they can offer other incentives that private sellers cannot. They can provide options to trade in your current vehicle, which can go towards the cost of the new vehicle. In addition, they can also offer other deals like cash back incentives and other rewards.
The Condition of the Vehicle
Most dealerships sell certified pre-owned vehicles, which mean they come with warranties and therefore some securities as well. Before they are sold, they must go through an inspection process and can go through multiple maintenance checks to ensure the quality of the vehicle is in good standing, which can save you money on future repairs. With this, you can ensure that you are purchasing a reliable vehicle and know that a dealership will hold themselves accountable if there are any issues with the car you purchased.
Private sellers do not offer this type of security, especially since they don’t operate or need to follow the same rules and inspections that a dealership must. They can sell their cars without warranties and without an inspection guarantee. This, however, doesn’t mean that purchasing a vehicle from a private seller is the wrong option; it just means that you must be cautious before committing to the purchase and perhaps do some additional research before negotiations begin. You can also pay for your own inspections before purchasing the car to ensure its quality.
Purchase a vehicle from a dealership or private seller based on your own personal situation or preference. While buying from a dealership can offer more security, buying from a private dealer can also help you save money. Always do your own research to ensure you are getting the best deals and hopefully you can find the car of your dreams.