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Buying a Used Car: Private Party or Dealer?

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Buying a Used Car: Private Party or Dealer?

Some used car buyers swear by the advantages of buying from a private party. Others insist on going with dealers. Each side has its own rationales, and here are some of the advantages they cite:

Why buy from a dealer?

  • Selection. You may have a make and model of car in mind, but a dealer may have several of them for you to look at. And it may have several of similar models.
  • Financing. Dealers usually have more options for financing. Private parties usually demand cash up front.
  • Certified used. Dealers often have certified used cars (which are used cars that are reconditioned, inspected, and given an extended warranty), which have many of the benefits that new cars have.
  • Warranty. You have more options for getting an extended warranty from a dealer.

Why buy from a private party?

  • Negotiations. You might get more wiggle room with a private party because you’d be dealing with an amateur—one who isn’t being pressured by the dealership to hold firm on a certain price.
  • Price. Prices are generally lower with private parties because they don’t have the overhead that dealers have.
  • Maintenance records. Private parties are more likely to have maintenance records than dealers are.

Used Rental Cars

It’s worth mentioning that used rental cars can be a bargain, and their warranties may still be in effect. The stereotype of used rentals is that they’ve been used and abused by their renters, but this isn’t always the case.

Other steps to take

  • Get the vehicle inspected by a good, trusted mechanic. Do a visual inspection first.
  • Get the registration and title records. You can get a Carfax report from www.carfax.com that shows the number of past owners and important mileage information; you can also find this information at your state’s motor vehicle department. If the seller is a private party, make sure he or she actually holds the title to the car. Ask to see the title certificate.
  • Read the Buyer’s Guide. This guide is posted with every used vehicle.
  • Check the little VIN (vehicle identification number) plate on the lower left corner of the front windshield. Does it appear to be tampered with? If so, the vehicle may have been stolen.