When purchasing a used car, one of the biggest decisions you’ll face is whether to buy a used car from a dealer or a private seller.
Each option has advantages and potential drawbacks, so it's essential to understand what best suits your needs.
Below, we explore the key differences between buying a car privately vs from a dealer to help you make an informed choice.
Buying a used car from a dealer generally comes with a higher price tag than purchasing from a private seller. This premium is due to the added value dealerships provide, such as vehicle inspections, necessary repairs, and warranties.
However, dealerships often allow room for price negotiation, so researching beforehand can help you secure a good deal. Additionally, dealerships offer various financing options, such as Hire Purchase (HP) and Personal Contract Purchase (PCP), making it easier to spread the cost over time.
Another advantage is the option to part-exchange your old car, reducing the stress of selling it separately.
Dealerships conduct thorough inspections, addressing any major mechanical issues before putting a car on sale. They also clean and valet the vehicle and fix minor cosmetic imperfections like chips or scratches.
Crucially, buying from a used dealership means you are protected under the Consumer Rights Act 2015, which ensures the car must be of satisfactory quality, fit for purpose, and as described. This legal protection provides added peace of mind that you wouldn't get with a private sale.
Another key advantage of purchasing a car from a used car dealership is the customer service and after-sales support you’ll receive. Dealerships often have dedicated teams to answer any questions you may have about the vehicle as well as support with paperwork and any issues post-purchase.
Additionally, dealerships are obliged to check if a car has any outstanding finance or has been reported stolen. They also handle all necessary paperwork, making the buying process more straightforward and hassle-free.
The most significant advantage of buying a car from a private seller is the cheaper price tag. Private sellers don’t have the overhead costs of dealerships and are not required to make repairs or offer warranties which is reflected in the lower price.
If you buy a car from a private seller, you will need to arrange your own private car finance through a financial institution or online lender, or a personal loan from your bank.
There may be some room for negotiation when buying a car privately, which will depend on the car’s condition, market value, and the seller's motivation to sell. Private sales are usually done via bank transfer to ensure payment is made securely.
It’s worth remembering that while buying a used car privately is usually cheaper, it comes with added risks. The car may have hidden issues that aren’t immediately apparent, and the seller is not obligated to disclose any problems unless asked directly.
Private sellers are not obligated to repair their car before selling it. They are, however, legally obliged to answer any questions you may have about the vehicle truthfully - so it’s important to make sure you ask all the right questions!
Whilst most sellers are legitimate and trustworthy, even honest sellers may not be aware of underlying issues, which can lead to unexpected repair costs for the buyer.
The seller has no obligation to offer any support once you've purchased the car, and since private sales are typically “sold as seen,” the buyer assumes all risk once the sale is complete.
When buying a used car from a private seller, the seller can provide information about the car’s history, but it’s wise to have an independent mechanic to inspect it before buying it. Taking the car for a test drive is crucial, but be sure to have appropriate insurance coverage before doing so.
The buyer is responsible for verifying all paperwork, including the V5 logbook, MOT certificate, service history, and receipts. It's essential to confirm that the seller resides at the address listed on the V5 logbook. It’s the seller's responsibility to inform the DVLA of the change of ownership.
When buying a used car privately, you are unlikely to get any after-sales support. Furthermore, as the car is not under warranty and is not subject to any laws, you will not be able to return the car should anything go wrong.
So, what is the best way to buy a used car?
Choosing between a dealership vs a private seller depends on your priorities. If you value peace of mind, quality assurance, and financing options, a dealership is the safer choice. However, if cost savings are your primary concern and you’re comfortable managing the risks, buying privately could be the better option.
Whichever route you take, conducting thorough research and inspections will help ensure you make a smart purchase.
Discover the range of used cars at Foray Motor Group.
