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Avoid Dealer Pitfalls: 9 Reasons to Buy a Used Car Privately

Many people go to a dealership when shopping for a used car. But dealerships are not your only option.

In fact, there are good reasons to buy a used car from the private market or another source rather than a used car dealership.

Here are some reasons you might want to skip the dealership if you're in the market to buy a used car and want to keep more cash in your wallet.

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Avoid Dealer Pitfalls: 9 Reasons to Buy a Used Car Privately

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You can steer clear of a "hard sell"

You will get a lot of attention when you walk into a car dealership, and that can lead to being overwhelmed by a salesperson trying to get you to take home a car.

But you can avoid the daunting hard sell from a dealership if you look at other ways to buy a used vehicle.

You will likely get a better price from a private seller

Car dealers face additional costs they must cover. These include dealership rent, salaries, and other business-related expenses.

Those costs might be passed on to the buyer. You can avoid such extra costs by purchasing from a private seller and getting a lower price.

You can avoid hidden fees

Surprise fees from dealers can include delivery, dealer prep, and processing document fees.

Buy from a private seller, and you can skip these junk fees altogether.

You won't feel pressured to buy an extended warranty

Dealers often try to talk buyers into purchasing add-ons, such as an extended warranty.

Extended warranties may not cover everything you expect. Drivers often discover gaps when they need coverage for a repair or emergency fix.

You won't pay high financing costs

Dealers make a profit from selling you a car, but they can also get extra money if you agree to finance your vehicle through them.

You may be able to get better financial terms on a car loan from a bank or financial institution.

You can avoid a low trade-in offer

If you have a car that you want to trade in, a smart money move is to find out exactly how much a dealership will pay for the vehicle before you go through with the sale.

You may be able to earn more by selling your car privately.

You can avoid the dealer incentive to upsell

It's not unusual for buyers to go into a car dealership with a plan to buy a particular vehicle and come out with something more expensive.

Salespeople earn commissions on sales, so they have an incentive to put you in something that may be out of your price range.

By contrast, a private seller is selling only one vehicle and doesn't need to sell you anything else in hopes of getting more cash.

Private sellers just want to sell

There are several reasons a private seller might try to sell a vehicle. Perhaps they need a bigger vehicle as their family grows, or want to downsize to one car after the kids leave home.

Others want to sell their current vehicle so they can purchase a new one.

Whatever the reason, there's no extra incentive for them to upsell you, hide fees in the cost, or do anything else that may be standard practice for used car dealers.

A new car may be a better option

Check the price of a used car and compare it to the cost of a new car. Used cars might have higher repair and maintenance costs due to the wear and tear from previous drivers.

That can add extra costs that wash out the savings you might otherwise get by buying a used car instead of a new one.