Advantages and disadvantages of buying cars for sale by owner

Cars for Sale by Owner - The Pros and Cons

Amanda Hart

Considering buying a car directly from a owner?

If you have to buy your next used car on a budget, then one big decision you will have to make is whether to buy from a used car dealership or find local used cars for sale by owner.

There are some distinct advantages and disadvantages to each choice. Depending on your situation, one might be better for you than the other. Before you make the decision on what type of new car deal to get, check out some of the pros and cons for each to be sure you get the best possible situation.

Cars from owners directly

There are many different ways to find local used cars for sale. Whether it is word of mouth, seeing them on the side of the road with the price written on their windshield; these kinds of cheap used cars are all over the place. Here are the pros and cons to buying these kinds of cars:

Advantages to buying cars for sale by owner

1. - Cheaper prices
• Owners are not required to make a certain profit the way that dealers are, so you can really find much cheaper prices on second hand cars this way.
2. - More negotiable
• It is also much easier to get owners to cut their price than it would be a dealer, especially when you have the money up front to show them.
3. - Easier transaction
• It's much faster and simpler to buy used cars in your local area from the owner. Exchange money, sign the titles and go process the paperwork; that's it.

Disadvantages to buying cars for sale by owner

1. - No warranties
• Car owners can offer you little peace of mind after the sale. There's no way to get warranties when you buy cars this way.
2. - No selection
• The one offered car is all you can possibly buy, it's not like you can browse around their lawn for other potential vehicles like a dealership.
3. - Seller's trustworthiness
• Some people prefer the under the table feel to buying cars this way, but you do have to trust a lot of what you are being told.

Cars for sale by a dealer

Buying your next used car from a local dealership is entirely different than buying from an owner, and presents its own set of advantages and disadvantages. Before you locate local dealerships, check out the pros and cons of buying cars this way:

Advantages to buying cars from dealerships

1. - Available financing
• You don't need all the money up front at a dealership when you can get auto financing. This lets you select more expensive vehicles.
2. - Wide selection
• There's more than just one car for sale at a dealership, so if you're unsure of what you want you can see much more options.
3. - Available warranties
• When you buy cars at a local dealer, depending on the vehicle, you could potentially get a warranty on it. This will ensure its quality for years to come.

Disadvantages to buying cars from dealerships

1. - Profiting off vehicle price
• Dealers are there to make money just like any other business, so you will not get as low prices as if you bought it from a local owner.
2. - Profiting off auto financing
• The financing offered by local dealerships also have to make profit, so you will definitely be paying more money in the long run this way.
3. - Little knowledge of vehicle history
• Other than getting a vehicle history report, local dealers will not know much about the vehicle's history.

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