Dealer Vs Private Sale – Where Should I Buy A Used Car?

//Dealer Vs Private Sale – Where Should I Buy A Used Car?

It’s a common assumption that buying a car privately gives you a better deal than if you were to buy one from a dealership. However, there is more to buying a used car than the price tag. How can you be sure that you are buying a car in good condition and no potential issues are lurking beneath the hood? How do you avoid the potential pitfalls when buying a used car?

If you are in the market for a used vehicle but not sure where to buy one from, here’s what you need to know about buying from a dealer vs private seller.

Buying a used car privately

Buying privately requires you to inspect a car thoroughly, and this means looking for signs of future problems. Unless you are a mechanic or knowledgeable about cars, you are buying on faith as a seller will not necessarily disclose faults or problems. It is highly advisable to invite someone knowledgeable on vehicles along to the inspection. If any repairs are needed, you must factor in the price of the replacement parts and the cost of repairs when negotiating a reduction in the asking price.


  • The price is generally cheaper
  • The opportunity of negotiating the asking price is stronger, especially if it is an urgent sale.


  • In a private sale, you will have to make sure that documentation and transfer of ownership are completed.
  • You have the responsibility of having to secure finance if you don’t have funds readily available.

Buying a used car from a dealer

There is less stress involved when purchasing a vehicle from a dealership as a sale usually comes with a warranty and should there be any defects, the dealer is responsible for repairs provided it is within the warranty period. Buyers are also protected by the Australian Consumer Law when they purchase through a dealership.


  • A dealer will ensure all the paperwork for the transaction is processed promptly.
  • In many instances, a dealer can provide financing options such as a vehicle trade-in or car loan facilities.
  • More security that protects you in case the car is faulty.


  • Cars are more expensive
  • Less room for negotiations

Choosing between a dealer and private seller when buying a used car will depend on your needs and circumstances. Need to finance a used car? Let Simply Finance find you the most attractive car loan rates. Contact us today.

2018-09-19T04:44:31+00:00 September 19th, 2018|Car Loan|Comments Off on Dealer Vs Private Sale – Where Should I Buy A Used Car?