Are you looking for a used car? Whether you get one from a used car dealership or a private seller is up to you. But the odds are you’ll pay a premium if you visit a dealership.
According to Cox Automotive, around 35.9 million used vehicles were sold by car dealerships and private sellers in the U.S. last year. So, millions of used cars change hands annually.
Should You Ever Go to a Used Car Dealership?
If you don’t want to roll up your sleeves and pound the pavement to save money, head to a dealership. Time is money, so it might not be worth your while to patronize a private seller. The back-and-forth negotiations and haggling might test your patience.
Although you’re better off taking your time and buying from a private seller, here are 15 reasons many people choose to pay more at used car dealerships.
They Need a Car Loan
Some people rush to used car dealers because they think that’s the best place to get car loans. But that’s almost always incorrect. While a dealer can simplify the car loan process, that hands-on approach will come at a cost. Car dealerships usually charge higher interest rates for car financing than banks or credit unions. So, do talk to someone at your local bank.
They Want a Warranty
Another reason some people visit used car dealers rather than buy vehicles privately is the warranty. A warranty can make good sense. But many consumers know the disappointment of paying thousands of dollars for a warranty and not getting their money’s worth.
Learning that an extended warranty doesn’t cover this, that, or the other can be a costly error.
They Want to Work With a Subject-Matter Expert
If you know nothing about cars, buying privately can feel scary. But that doesn’t mean you’re better off visiting a used car dealership.
For every good car salesperson, there’s one who wants to separate you from as much of your money as possible. They’ll do this by trying to upsell you on extras that are unnecessary or that you can get for far less from other vendors.
They Like That There Are Tons of Vehicles in One Spot
A used car dealership lot can be attractive due to the variety of makes and models in one space. But while it might be okay to go and see what’s available for research purposes, you will help your cause money-wise by purchasing from a private seller.
They Don’t Want to Buy a Car from a Stranger on Facebook Marketplace
While some people are wary about dealing with strangers online, they think nothing of dealing with strangers in suits or skirts and blouses at used car dealerships.
When you buy privately, you’re in the driver’s seat. With mutual respect between you and the private seller, you can strike a deal for the right car at the right price.
They Go Off of Glowing Referrals From Friends
Some car buyers go to used car dealerships based on glowing reviews they get from family, friends, co-workers, neighbors, or other people they know. But here’s the thing.
Used car salespeople are in a good mood when they sell cars at inflated prices. The problem is unsuspecting car buyers don’t realize they’re being taken for a ride.
They’ve Always Bought Vehicles From Used Car Sellers
Going to a used car dealership is automatic for many people. It’s what they’ve always done, so breaking out of that habit might be hard. While you can shop wherever you want, it makes sense to consider buying a vehicle from a private seller.
They Can’t Pass Up a Great Offer
Used car dealers know how to bring in the public hook, line, and sinker. All it takes is advertising a particular make and model and encouraging interested parties to come down immediately.
But what often happens is that these special offers don’t exist. They’re intended to generate interest, entice people to visit the lot, and get them to buy another, more expensive car.
They Fear Buying a Lemon from a Private Seller
Nothing will drive someone to a used car dealership faster than the fear of buying a lemon from a private seller. And, yes, some private sellers will try to unload their decrepit hoopties on car buyers. But you can largely avoid such problems by hiring a mechanic to give any car you’re considering a once-over. That will help weed out the money pits.
10. They’re Enticed By the Dealer’s Promise of Top Dollar for Their Trade-In Vehicle
First things first. Used car dealers don’t offer top value for trade-in vehicles. They might tell you they do to get you to come to the lot. But they will recant once you arrive at the dealership.
You can almost always get a better offer by selling your used car privately. Yes, it’ll take more work. But the odds are you’ll get considerably more by selling yours independently.
They Like the Convenience
Buying a vehicle from a used car dealership is more convenient than dealing with a private seller. But you have to consider whether that convenience is worth the premium price added to the sticker. For you, it may be. But that could mean paying thousands more than necessary.
They Believe It’s Safer to Buy at a Dealership
If you’re concerned about checking out a used car at a private seller’s home, have them meet you with the vehicle in a public place instead. Meeting at a grocery store or mall parking lot during regular business hours might make the process less daunting.
They Think Used Car Dealerships Offer Good Prices
Some consumers believe that used car dealerships — some of these businesses at least — offer good prices. And that may be true. But you can get the same cars for much less from a private seller.
They Want a Certified Pre-Owned Vehicle
Yet another reason people sometimes prefer buying from a used car dealer rather than a private seller is that they insist on getting a certified pre-owned vehicle.
Going this route can make sense. But consider that you can take any car you want to purchase to a mechanic for the same thorough check and certification. And it might cost you less to do it privately.
They Like the Online Reviews
No one said there aren’t some good car dealerships and car salespeople. But you’ll pay more for that great service, which is one reason to consider buying from a private seller instead.
Which Route Will You Take?
As a consumer, you can choose whether to buy from a dealer or a private seller.
But if the goal is to get the used vehicle you need as cost-effectively as possible, the latter option is best. For your peace of mind, bring the car to a mechanic before deciding whether to buy it and how much to offer the private seller.
More From Driver’s Drift
GM Recalling 450,000 Trucks and SUVs: Here’s What You Need to Know
15 Used Cars To Steer Clear of at All Costs
15 Vehicles That Leave Owners With Buyer’s Remorse
15 Things Boomers Taught Us About Cars Which are Totally Wrong Today
