Choosing Between a Private Dealer and a Dealership for Cars

By: Ray Paulsen

With a dealer, you have recourse. With a private purchase you have little or none, with that said, lets look at the pro's and con's buying private.

Buying privately is simply buying "as is". When you purchase privately, you're buying a car exactly as you see it .... any problems the car has become your problems. When someone's about to sell their car, it's usually because they're buying another or seller not being satisfied with trade allowance from dealer.

Here are some risk factors buying privately

If the vehicle is found to be stolen, then the buyer is out of luck. The law says that a stolen vehicle returns to the original owner. The buyer loses the whole purchase price, and would have to sue the seller, who by then may or may not be able to be found.

There is also the risk of liens being registered against the vehicle. Any liens that are found to be registered against the vehicle would then be the responsibility of the new owner ... they would have to either pay out the lien, or face repossession of the vehicle by the lien holder or The vehicle may have had prior accident damage, and the buyer would have little or no recourse.

On the positive side buying private

There are many good deals to be had, sorting them out is the problem as there are also a fair amount of scams, the number one question is finding out why buyer is selling and having trust in the sellers answer.

Example, good answers are - leaving country - retired cant drive anymore - getting a company car - don't need a second vehicle anymore, other good buys could be worth of mouth, but beyond that it becomes buyers beware dealing with a total stranger and buyer better having done some homework making sure not having a lemon parked in the driveway.

Buying from a dealer

When consumers buy a vehicle from a registered dealer, they are protected by numerous pieces of legislation, such as the Sale of Goods Act, the Consumer Protection Act, and the Business Practices Act, to name a few.

By law, dealers must guarantee title against stolen vehicles. Also, dealers must guarantee that there are no liens on the vehicle. They must use Bills of Sale that abide to the law, and are required to report all known material facts about the vehicle.

Here are some services a dealer provide that a private seller cant.

A Dealer's Warranty

After Sale Service

Recourse

Title Guarantee Against Stolen Vehicles

Financial Assistance

Extended Warranties

Lien Free Vehicles

Trade-Ins

It looks the safe way to buy is from a dealer, but they are not all angels and knows every trick in the book to have the upper hand. there are hundreds of scams being used by some dealerships, as an example I will use one that ties in with this post and I am almost 99% sure you would fall for it.

Note... above where it says...by law dealers are required to report all known material facts about the vehicle... thats true provided the buyer asks and most consumers don't, but now comes the know it all buyer whom has done extensive research and demands a history report which contain several pages...well, I will admit he has done all his homework if he counts the numbers of pages and there is not a number missing in the middle somewhere. not all dealers are scum to this extend, but in my time I have seen this little trick work a few times.

The true answer to which is best to buy from lies within the purchasers knowledge having learned the proper steps how to buy a vehicle

New Car Buyers
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on New Car Buyers
 



Share this article :
Click to see more related articles