Buying a used car is a process that can be overwhelming. It’s a big important decision, so you want to make sure you are getting the right quality vehicle at a good deal. There are a few options as to where you can purchase a vehicle. Here are some pros and cons for each purchasing option to help you narrow your choices. As always, you should also invite your mechanic into the conversation because he can also provide guidance.
This post is one in a five part series.
Part 1: What should the overall process look like from start to finish?
Part 2: How much should I expect to spend?
Part 3: What makes and models should I be looking at?
Part 4: Where should I buy a used vehicle?
Part 5: Why should I get a pre-purchase inspection?
Most buyers want practical, economical, and reliable transportation. We realize that there are those whose idea of the perfect vehicle goes beyond that mindset, and there’s nothing wrong with that. I think you will still find helpful advice in these articles. However, the bulk of our clientele are looking for affordable, dependable transportation, so I am writing through that lens.
Buying from a Used Car Dealership
Cons:
- Some dealers do an inspection and repairs in house and may not let you take the car to your mechanic. If an inspection or repairs were done, they may not have been done to your mechanic’s same standards. For example, even if they catch the most pressing needs and install parts to correct those needs, what if the parts are not of sufficient quality to hold up over time? When Andrew worked at a used car dealer, he observed that mechanics working under the same conditions had widely varying “comeback” rates. Certain technicians had twice as many vehicles returning for additional service than others.
- Dealers may invest into completely refurbishing the vehicle, including cosmetic fixes, raising the sale price. If you are more concerned with functionality than how your car looks, this will be an unnecessary added expense.
- Many used car dealers have a set price on each vehicle and their salespeople do not have the authority to negotiate. If the vehicle is not priced reasonably, you end up paying more than market value.
- You are more likely to finance the vehicle. See part two of this blog series to understand why we advise against financing.
Pros:
- The transaction happens in a public business establishment.
- You don’t have to worry about legalities. You are buying from a business which must be licensed and adhere to state and federal laws.
- The dealer handles the financial, tax, and registration paperwork.
- Many used car dealers have a set price on each vehicle and their salespeople do not have the authority to negotiate. If priced reasonably, this shows they know the value of what they are selling and can save you negotiating time and stress.
Places to look:
- Carmax
- autotrader.com
- Edmunds.com
- Kelley Blue Book (kbb.com)
- Many new car dealerships also have newer used cars
- Independent used car dealerships
Buying a Used Vehicle from an Online Dealership
The pro’s and con’s of buying from a dealer apply whether buying in person or online. There are a couple additional things to think about when purchasing online.
Cons:
- You do not get to see the car you are buying in person and test drive it to catch any obvious red flags.
- You do not get to interact with an actual person and feel out the place you are buying from.
Pros:
- Contactless shopping. In the age of a pandemic, this might be important to you.
- The dealer will deliver your new vehicle to you.
Places to look:
- Carmax.com
- Carvana.com
- Drivetime.com
- Autotrader.com
Buying a Used Vehicle from a Private Party
Cons:
- You most likely do not have a prior relationship with the seller and must be cautious about when and where you meet them. If possible, meet in a visible public location. If you must meet them at a private residence, do so during daylight hours and bring along a friend.
- It takes more of your time to make a wise decision and purchase. From the research, to the pre-purchase inspection, and paperwork to post-purchase repairs, you have to put a little leg-work into it.
Pros:
- You can take the vehicle to a mechanic you know and trust for a pre-purchase inspection. (If they don’t let you do this, see it as a red flag and walk away).
- Any needed repairs can be done by your own mechanic after purchase. Plus, you can schedule repairs based on urgency and your budget – unnecessary cosmetic repairs are up to you.
- Because you put more legwork into purchasing the vehicle (i.e. paperwork), you save money on the fees the dealer charges for these logistics .
- It’s generally easier to negotiate the price. If you’ve done your research and have a good idea of the value, this can work in your favor. A reasonable seller may even adjust the price if the vehicle is found to need a substantial amount of work after the inspection.
Places to look:
- Facebook marketplace
- Craig’s list
- Autotrader.com
Most likely you will shop in all three of these arenas during your process of buying a vehicle. My hope is that this article will help you narrow down your options once you have a list of possible vehicles.
Key take-aways:
Don’t miss out on the other posts in this five part series!
Part 1: What should the overall process look like from start to finish?
Part 2: How much should I expect to spend?
Part 3: What makes and models should I be looking at?
Part 4: Where should I buy a used vehicle?
Part 5: Why should I get a pre-purchase inspection?
Marinelli Auto Service is an auto repair shop in Winter Park, Florida. We’ve been serving Central Florida since 2015. We provide maintenance and repairs for a variety of makes and models.