Buying from private party vs used car dealership

[baydude]

I'm in the market for a used BMW 328i and I'm trying to determine why would anyone ever go to a used car dealership to buy a used car when it costs $2k+ more? What's the incentive of paying more?

 

[Midwayman]

I'm in the market for a used BMW 328i and I'm trying to determine why would anyone ever go to a used car dealership to buy a used car when it costs $2k+ more? What's the incentive of paying more?

The hope that its been checked out and the dealer won't want to risk it's reputation over selling a shady car. Instead the crappy ones get wholesaled out to bob's discount house of cars.

That's and dealers have the whole certified used program that usually includes extra warranty, etc. However you can just get a car checked out by a mechanic, buy an extended warranty if you want one and still save money.

FWIW when I was looking at used cars recently I found one that looked good and only found out about a salvage title by carfax. The owner didn't disclose. So you have to be a bit careful.

 

[Vdubchaos]

It's hard finding private sellers now days (it seems).

Personally I would actually prefer private over dealer.

REGARDLESS, you need to get the car checked by mechanic (unless you know what to look for yourself etc).

And of course, DO NOT even touch it if there is no service records/history of oil changes/maintenance on the car (regardless if it's dealer or private).

I've been peeking around used car/dealer market lately and was appalled how many cars have 0 service records etc. People actually buy these things?

Many cars had "car fax" with oil changes at 5k....and nothing until 40-50k miles......you would have to be insane to buy something like that, but they ARe in business so idiots much be buying.

 

[WilliamM2]

Many cars had "car fax" with oil changes at 5k....and nothing until 40-50k miles......you would have to be insane to buy something like that, but they ARe in business so idiots much be buying.

If someone does their own maintenance, it won't show up on Carfax. If they change the oil at any place other than the dealer, it won't show up on Carfax. Same with accidents. If there's no insurance claim, it won't show up on Carfax. I can't believe anyone puts any faith in those reports.

 

[Vdubchaos]

If someone does their own maintenance, it won't show up on Carfax. If they change the oil at any place other than the dealer, it won't show up on Carfax. Same with accidents. If there's no insurance claim, it won't show up on Carfax. I can't believe anyone puts any faith in those reports.

I don't but it's the only thing I have to go by.

Will I take the risk of poorly maintained engine by word of mouth? No, especially not from a dealer.

If I met the seller and they have receipts and seem like they have a clue.....that's good enough for me.

 

[jlee]

Also, in some states (Arizona anyway) you don't pay sales tax on a private party vehicle purchase. You do for a dealer purchase, so there's ~9% savings on your vehicle cost.

 

[Midwayman]

Also, in some states (Arizona anyway) you don't pay sales tax on a private party vehicle purchase. You do for a dealer purchase, so there's ~9% savings on your vehicle cost.

You don't have a use tax? No sales tax here either on used private party sales, but when your register it there is a tax based on the value of the car. Depending on the particulars you could save a few bucks, but in general its pretty close.

Edit- Looked it up. VLT. Much less than our use tax, but there is a extra tax when you title a used car.

 

[jlee]

You don't have a use tax? No sales tax here either on used private party sales, but when your register it there is a tax based on the value of the car. Depending on the particulars you could save a few bucks, but in general its pretty close.

Edit- Looked it up. VLT. Much less than our use tax, but there is a extra tax when you title a used car.

I just bought an $18,400 vehicle and paid ~$200 to register it for a year (tax/title/etc). If I bought it from a dealer, I'd be looking at ~$1600 in sales tax.

 

[Scarpozzi]

If you can trust the private party, then yeah... The problem is, the deals that seem too good to be true can be scam artists and you have little recourse when you get stuck dealing with those crooks. The story usually is, "This was my mother's car, she just drove it to church, etc..." Then a few years later, you learn it was totaled and half of it was a really good bondo job that hid the metal damage to the body panels. In some cases, there can be flood damage or electrical problems that can make a car unsafe....you may not find a problem for a few months after the sale and the seller will be long gone.

Of course, car dealerships can be crooks too. It's just the risk you take as a buyer.

I recently sold a 2000 Honda Civic off Craigslist. The sale went great and we made a decent deal for a kid looking for a good car with relatively low miles for its age. We just didn't need a third car since we stopped driving it and we didn't want to see it rot in the driveway. Deals can be found.

 

[JulesMaximus]

The hope that its been checked out and the dealer won't want to risk it's reputation over selling a shady car. Instead the crappy ones get wholesaled out to bob's discount house of cars.

You've never been to a used car dealership have you?

 

[Midwayman]

You've never been to a used car dealership have you?

I have. I'm primarily talking about ones that are also new car dealers. Like I said, they typically wholesale out problem cars. Bob's discount house of cars (we finance anyone!) is probably actually worse than a private seller.

 

[ViviTheMage]

I just bought an $18,400 vehicle and paid ~$200 to register it for a year (tax/title/etc). If I bought it from a dealer, I'd be looking at ~$1600 in sales tax.

weird, in MN you pay that sales tax at the DMV...the states wants that cash.

 

[JulesMaximus]

I have. I'm primarily talking about ones that are also new car dealers. Like I said, they typically wholesale out problem cars. Bob's discount house of cars (we finance anyone!) is probably actually worse than a private seller.

They don't sell older vehicles though and I wouldn't really consider them a used car dealer since they are really a new car dealer that also sells clean low mileage used cars. I would consider a place that sells only used cars to be a used car dealer.

When I traded in my car it didn't go up for sale on the dealer lot because it was 10 years old and had 130,000 miles on it. I don't know where it ended up but I'd be willing to bet the place that sold it didn't do much, if anything, to it.

 

[kitatech]

Used car dealers just prep a car for safety...as a legal issue...and just that...whereas a NEW car dealership might prep a car to improve looks and to address basic maintenance issues...

A new car dealer would have a "work order" for such prep...as well as a maintenance history if the car was its own marquee/model...whereas a used car "lot" will likely not have such documentation.

 

[Pacfanweb]

People go to dealers because they have the cars, typically.

They also go because they have a trade, or because they need financing, and dealers can take care of all that.

Buying from a dealer also gives you somewhere to go complain if there's an issue with the car, particularly if you buy the same brand they sell new.

Buying from an individual, you have none of these options, but there's nothing wrong with it....as long as they have the maintenance records showing they took care of it and a clean Carfax, should be fine.

 

[jlee]

weird, in MN you pay that sales tax at the DMV...the states wants that cash.

shhhh, don't make them start thinking about it!

 

[Spicedaddy]

Buying from a private party that took excellent care of the car is the best, but those are hard to find. You pay less and save on taxes in most places.

CPO from a BMW dealer is the next best thing. You pay more, but get a warranty and low financing.

I'd never buy anything from used car dealers.

 

[MagickMan]

You've never been to a used car dealership have you?

I was about to say that, he doesn't know what he's talking about. :\

OP, It's simple. Shop private sellers, find a car you like and get a PPI, pocket the savings over buying at a car lot.

 

[bryanl]

Some private sellers are actually fronts for used car dealerships.

 

[Kelvrick]

The model I wanted happened to show up at a dealer, so I went to check it out and ended up buying it.

It was at a new Honda dealership as a trade in. Not sure if that is different to those nothing but used cars dealerships you are referring to.

 

[Bock]

Like some1 above said, if you can turn a wrench & know how to tell if a cars been really wrecked b4, buy private used.

For example, an 08 lancer is $8k private, from a dealer $10k srp. For that 2k difference, you could buy a lower mileage engine, trans, & etc etc from salvage yards with cash left to spare.

 

[Tweak155]

Convenience. Sell your current car and get the new one at the same time.

 

[Elfear]

Convenience. Sell your current car and get the new one at the same time.

Plus in some states, when you trade in your old car, you only pay sales tax on the difference in value between the old and new car. Going with a private sale you'd pay the full sales tax on the new car. At least I haven't found a legal way to have the state take into account the sale of your old vehicle so you don't end up paying sales tax on the full amount of the new car.

Kinda sucks because better deals can be found in the private market.

 

[Midwayman]

Plus in some states, when you trade in your old car, you only pay sales tax on the difference in value between the old and new car. Going with a private sale you'd pay the full sales tax on the new car. At least I haven't found a legal way to have the state take into account the sale of your old vehicle so you don't end up paying sales tax on the full amount of the new car.

Kinda sucks because better deals can be found in the private market.

Sucks for the private sellers as every expects them to discount the car because of that. Even so I typically get more money (net) than trading in.