Buying a used car: private seller vs. dealership

Is it cheaper to buy a car from a private seller or dealer?

One of the advantages of buying a used car from a private seller is that you might be able to snag a bargain. With no business overheads or sales targets to worry about, private sellers can sometimes be more flexible on pricing than a dealership. You might even find that it’s easier to negotiate with an individual who is keen to make a sale and not a professional car seller.

Used cars from dealerships can be more expensive as they have extras to cover like employee wages and site maintenance costs. But that doesn’t mean you won’t be able to find a great deal from a dealer – and you can always try to negotiate.

Do you get better service from a dealership?

When you buy from a private seller, there are a lot of unknowns. You can’t be sure whether they’re a car expert or completely clueless. If they’ve owned the vehicle for a while then they might be able to share the small quirks that only the car’s driver could know, the way the back door handle sticks in cold weather or that the heater works best when turned up high, for example. But that doesn’t mean they have any technical know-how.

When buying from a dealership, you can benefit from their knowledge and expertise. They may have years of experience in the industry and can make recommendations while talking through the pros and cons of different car makes and models. You’ll also be able to spend time checking over the vehicle, take a test drive, and maybe even get a free cup of tea!  

Can I get car finance for a private sale?

It can be more difficult to find car finance for a private sale. This won’t be an issue if you have savings and you’d prefer to buy your new car outright, but if you’d rather split the cost into affordable monthly payments then you’ll need to secure a car loan. Some lenders won’t finance vehicles bought from private sellers as they can’t be certain of the car’s condition.

When you buy a used car from a dealer, you can apply for car finance. Choosing a finance broker like CarFinance 247 gives you access to a panel of lenders, offering both hire purchase and personal contract purchase loans. This is especially useful if you have a bad credit score, are self-employed, or are claiming benefits and might have been refused finance elsewhere. And when you secure your car finance first, you can choose a car with confidence.

What are my rights if something goes wrong with my used car?

Used cars can go wrong, even when they’ve been kept in the best possible condition. Unfortunately, you have limited legal rights when buying from a private seller. Sellers only need to ensure that the car is driveable and in the same condition as it was advertised. If the car then breaks down the next day, then you’ll be fully responsible to pay for any repairs needed. There’s also no guarantee that the seller has looked after the car, and you probably won’t be covered by a manufacturer’s warranty unless it’s a nearly new model.

When you buy a car from a dealer, you’re protected by the Consumer Rights Act 2015. This means you have the right to repair or a replacement if you find a fault within the first six months that you own the car that was present at the point of sale. Dealerships have their reputation at stake so it’s in their best interest to resolve any issues quickly. They might also be able to offer an extended warranty.

Should I choose to buy a used car from a private seller or dealer?

The decision to buy a used car from a private seller or a dealership really depends on you and your individual circumstances. There are pros and cons of both options. All sellers must make sure the car you’re buying is in a roadworthy condition, meaning it’s legally fit and safe to drive. But beyond that, you don’t have a lot of rights if something goes wrong with a car you’ve bought privately. In fact, you could be left with a hefty repair bill. But if you’re car confident and know how to carry out thorough checks, buying from a private seller could work for you.

While privately sold cars can be cheaper, you could struggle to find car finance. Choosing a car from a dealer means you can apply for a car loan to split the cost into affordable monthly repayments. You’ll also benefit from the dealership’s expertise, customer service, and help if your new car does break down. If you’re looking for finance and would like some additional support with your car buying journey, then purchasing from a dealer might be the best choice for you. With CarFinance 247, you can check out the dealership before you choose a car; every listing from one of our trusted Marketplace sellers is accompanied by a customer-generated star rating.