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A huge factor for people buying a used car from a private party instead of a used car dealership is they usually get a better price. Buying a used car at a dealership will usually cost more because of the need to profit from the sale, to pay for overhead. With that said, there are advantages from going to a dealership to buy a used car. Being able to get a car loan from a dealership is easier because the dealer does business with many financial institutions. The benefit is they are able to give you better rates plus you can get everything done all in one place. If buying a used car from a private party, you will have to make sure you obtain your own financing, insurance and registration, extended warranties and taxes.
Buying your used car from a private party means having to adhere to Used Car Lemon Laws. If something goes wrong, you do not have many options unless you can prove fraud. With a dealership, there are federal and state used car lemon laws that protect you. Another consideration is to trade-in your current vehicle at the dealership and get the Kelly Blue Book worth for it. This is used as a down payment against your purchase price. You can also visit a new car dealership and buy a “certified pre-owned vehicle”. This is where the vehicle comes with a certification of warranty stating the vehicle is held to higher standards. This certification can also get you better rates from a financing company.
To sum this up, if the price of the used vehicle is a significant concern and you are not worried about financing and reliability of the used car, buying from a private party is the better option. If you are more concerned with certification and being able to have the dealership take care of all the paperwork, then buying your used car from them would be for you.
