Buying a Car: Dealership vs Private Party

This post is part of a sponsored series. 

When it comes time to purchase a new vehicle, many of us scour the internet for the best deal. Many times it comes down to finding something we think sounds great on Craigslist that ends up being less than what we were expecting. Other times the vehicle is great and it really works out well, but it does make you wonder which is the best route to go; going into a dealership or purchasing from a private party? Here are some things to consider.

When purchasing a vehicle from a private party… 

The Cons

• You will need to take care of all the financing, loans or cash on your own.
• There is no option for extended warranties.
• You only have the option to test drive and look at one vehicle per meeting.
• Some may not let you test drive a vehicle before you buy.
• There may be less room for negotiation.

The Pros

• The owner will know the vehicle very well and be able to provide detailed answers.
• Low pressure for a sale.

When purchasing a vehicle from a dealership… 

The Cons

• May be high pressure depending on the dealer.
• May not know each vehicle as well as an owner would.

The Pros

• They have extensive inventory to view and offer.
• You will be able to test drive any vehicle before purchasing.
• They offer financing options.
• You have the ability to trade in a vehicle.
• More room for negotiation.
• You have the option for an extended warranty.
• Purchasing is a relatively fast process because they do this countless times a day.

You can probably tell from the above list that I think purchasing a car from a dealership has the most benefits. A California based Dodge dealer that I spoke to recommends test driving a few vehicles before you buy to make sure you get a good feel for what you like and what you don’t like. I think that’s a great perspective because you don’t really get a good idea of your options until you have a chance to look at them and analyze them! You can’t do that with a private party, it would take several visits and a lot of headaches to try and arrange that with multiple sellers.

Which route do you prefer? Leave a comment with your thoughts!