ALT-1 Choosing between a Private Dealer and a Dealership for Car Buying
Buying a car can cause some serious headache, the fear of buying a lemon exists in every car buyer unless you purchase a brand new car. The question lies "should I buy a car from the private dealer or from a dealership?" The following covers pros and cons for both type of car sellers.
Private dealerPrivate dealers are the people who advertise their own used car. The advantages of this type of seller are as follows:1) Lower prices - these sellers do not have a markup on their cars, for whatever reasons, they just want to get rid of it. These reasons can be upgrading to a newer car, making room for the garage, going overseas, etc etc.
2) Better to negotiate - similar as lower prices, private dealer just want to sell the car, most likely they will drop the prices to get rid of their headache.
There are also disadvantages of a private dealer.1) No warranty - Generally the private dealers sell their car as of a "sold as is" basis, once the agreement is established, there is no turning back.
2) Hidden flaws in the car - it is up to the buyer to inspect the vehicle before the purchase, hidden problems such as engine problems, transmission problems, structural damage, these no visible problems do exist in some used cars.
3) Encumbrance - If the previous owner commits a crime using the car,incur any penalties on the car, or money owing on the car and the buyers don't do their homework and don't check with the associated authority for encumbrance, the new buyer may carry these costs after the agreement is signed.
DealershipDealerships are licensed businesses who make their living on selling cars.Advantages of dealership are as follows:1) Warranty - Dealerships sell their car with warranty, whether its just a 3 months or a 3 year warranty. They will make sure they sell something that won't ruin their reputation.
2) Inspection report - Some dealerships offer buyer the complete inspection report, that way, buyers know what they are buying and what problems to expect.
3) Encumbrance - It is illegal for dealerships to sell cars with encumbrance on it. This provides the buyer a peace of mind that the car is debt free.
Disadvantages of a dealership are outlined below:1) Price - The dealerships need to make money from selling cars, hence the prices are generally higher.
2) Contract - Once you enter into a contract to buy, it is very difficult to pull out of that, the results may lead to legal actions. Think carefully before you sign the piece of paper.
3) Hidden Trap - Some dodgey dealers may patch up the cars, put some seat covers on and charge an astronomical and the most ridiculous prices on the car. Make sure you shop around and don't get ripped off.
Also these patching up may cover some problems of the car, the salesman might make the car the car of the century with this and that feature. Do get it checked, don't make irrational decisions just because it looks nice on the outside.
In conclusion, I personally used to buy cars from the private dealers, its because the cars are cheaper, more cars to offer. I just shopped my recent car at the dealership because they over a 3 yr warranty at an extra cost. Its worth it because I work fulltime and I simply do not have time to fix cars anymore. Reliability was my main focus.
For the non mechanically minded person, go to a large respected dealership and take someone who knows cars to check out the vehicle, its because they offer warranty and even its alittle more expensive, its better in the long run because you don't have to pay to fix any nasty problems.
