Buying a used car from a dealership has a number of benefits associated to it. If you decide, however, to buy a used car privately, you are more likely to discover more about the car you are purchasing as you are buying directly from the owner. Additional benefits that come with buying a used car privately are listed below:
- Finding a private seller in your area can be much more convenient. You can use a number of online and offline services including online forums, community groups and newspapers to find out who is selling and their location.
- You could save yourself some extra money and reduce the finance on your car loan. Costs for privately sold used cars often cost less because there are less additional costs associated to the price. For example, dealers will redirect advertising costs to the buyer, as well as commission given to the salesperson, which increases the total cost overall.
- Normally, a private seller will be looking for a quicker sell. This means, they are more likely to welcome a negotiation on cost and make a faster agreement to terms.
Disadvantages of buying a used car privately include:
- Unfortunately, buying a used car privately means there is no Guarantee or Warranty. Although the seller must be able to provide accurate information about the cars history, and also offer a test driver to potential buyers, a Warranty or Guarantee is not provided. Therefore, a higher risk is associated with buying privately as once the purchase has been made, the new owner will be financially responsible. If you have concerns regarding a car’s history, you can check NRMA’s Car History Report online. This can help ease your mind before making a final decision on your car you’ve decided to purchase privately.
- Faults are not covered by Fair Trading. As the title of the vehicle is not guaranteed when buying privately, any faults you find on the vehicle are not covered by Fair Trading. Although your car might be less costly, you have no legal backup to cover you.
- As a private buyer, you will be expected to organise all paper work associated to the purchase or transaction. Additionally, unlike at a dealership, you will not be able to receive help with your financing from the seller.
