You’re ready to buy a used car, but you have a choice to make: should you buy from a dealership or a private seller? Both have trade-offs that impact your wallet, car selection, and experience.
Explore the pros and cons of dealership and private-party car sales. Then, learn how DealNow can give you dealership-level safety with private-party prices.
Dealerships offer a structured, convenient buying experience with professional staff to guide you through the process. Here’s what you can expect when buying from a dealer.
Dealerships maintain a wide variety of vehicles, from new, popular models to luxury cars. This selection allows you to quickly compare different makes, models, and trim levels in one location.
One of the biggest advantages of buying from a dealership is access to financing. Dealers work with financial institutions to offer loans, even if your credit score isn’t great.
Dealerships let you trade in your current vehicle. They’ll handle the paperwork and apply the trade-in value toward your new purchase. They won’t offer what you could get from a private sale, but the convenience is hard to beat. Plus, your car’s trade-in value reduces the sales tax you’ll owe on your next car.
Most dealerships offer warranty protection, including extended or additional warranties, at the time of purchase. You can rest easy knowing that you’re protected against mechanical issues down the road.
Dealerships must adhere to consumer protection laws, giving buyers legal recourse if something goes wrong. This protects you against undisclosed issues after the sale. Reputable dealers also care about their customer satisfaction. Since happy customers are more likely to return or refer others, reputable dealerships work to satisfy you.
If you’re looking for a used car with maximum assurances, Certified Pre-Owned (CPO) vehicles are for you. These cars undergo rigorous inspections and often come with additional coverage, including warranty protection and roadside assistance. While they may cost more than a standard used car, the added benefits can be worth it.
Private-party purchases can save you serious money if you’re willing to do some legwork. Let’s look at buying from a private seller.
You could save hundreds or thousands of dollars by buying from a private seller. Since private-party sales don’t include dealer document fees, dealer market adjustments, or overhead adjustments, the vehicle price is often lower than what you’d find at a dealership.
Auto marketplaces consolidate thousands of vehicle listings. You can shop for niche market vehicles, collector cars, or damaged vehicles for restoration purposes. If you want a particular model or trim level, you will eventually find it.
Most private sales are “as-is” vehicles, meaning you assume all responsibility for any issues after the sale. You must independently verify the title status, order a vehicle history report, and perform a pre-purchase inspection before committing to the car. Keep reading to learn about how easy this process can be.
Private sellers don’t offer financing options. This means you’ll need to secure your own funding, whether through a bank, credit union, third-party lender, or personal savings. If you’re paying cash, this isn’t an issue.
Private-party sales offer more leeway for negotiation. Unlike dealerships, where the actual negotiation process can feel rigid, private sellers may be more open to offers, especially if they’re motivated to sell quickly. This can give you more buyer leverage to secure a fair price.
We’ve covered the basics. Here’s a quick guide to help you decide which route to take:
Both options used to have clear advantages, but these days, the choice isn’t so cut and dry.
DealNow changes that equation by giving you dealer-like protection and private-party prices. We’re a complete transactional platform that guides you through the purchase process and lets you make instant, no-limits payments from your mobile device. Here’s what you get:
Find a car on Facebook, Craigslist, or anywhere else, and enjoy a secure, guided transaction.
We’ve discussed our awesome car-buying features. Now let’s look at the simple steps you’ll take when buying a private-party car:
It’s that easy. After using DealNow to buy a car, you’ll never want to do it any other way.
Private party prices often run 10–15% below dealer prices. On a $40,000 vehicle, that’s thousands of dollars in savings. Remember to do your due diligence and factor in repairs or maintenance.
Certified pre-owned (CPO) vehicles undergo rigorous inspections and come with additional coverage beyond any remaining factory warranty. While they cost more than standard used cars, CPO vehicles can be worth the premium if you want peace of mind. They’re especially valuable for luxury or high-tech vehicles with expensive advanced battery packs or cutting-edge tech features.
Your credit score plays a big role in your access to financing. While dealerships often work with a third-party lender or offer house financing, you might get better rates through your bank or credit union. If you’re trying to build credit by making payments, make sure your lender reports to all three credit bureaus.
While private sellers should disclose accidents, some states don’t legally require them to. That’s why you should get a vehicle history report before any private-party purchase. DealNow makes this easy with integrated vehicle history reports that reveal past accidents, damage, and repairs.
Yes, you can negotiate the purchase price at a dealership, but it’s not easy or always possible. Dealerships have a professional sales team trained to maximize profits, so come armed with research on the vehicle price and be ready to walk away if the deal doesn’t meet your expectations. Private sellers, on the other hand, may be more open to negotiation, especially if they’re motivated to sell quickly.
An “as-is” vehicle means the seller offers no warranty protection, and you assume all responsibility for any mechanical issues after the sale. All private-party vehicles are sold as-is. Always conduct a pre-purchase inspection and review the vehicle history report before buying. Take these steps to avoid costly major repairs down the line.
Trading in your current vehicle at a dealership offers one significant tax advantage: in most states, you only pay sales tax on the difference between your trade-in value and the purchase price of your new car.
Here’s an example:
When you sell your car privately, you’ll pay sales tax on the full purchase price of your replacement vehicle, even though you’re using the money from your private sale to buy it. However, the higher price you typically get from a private-party sale often outweighs this tax benefit. You might save $600 in taxes by trading in at the dealer but get $2,000 more by selling privately.
Interstate purchases require attention to local regulations. You’ll need a 30-day temporary permit or 30-day transit plate to legally drive the car. Different states have varying requirements for sales tax, registration fees, and documentation. Some require you to visit a vehicle licensing office in person, while others allow you to handle everything by mail or online. Check with your state for specific information.
From finding a car to completing the vehicle transfer, most private party sales take 1–2 weeks. You’ll need time to research the vehicle, arrange inspections, secure financing (if needed), and handle paperwork. Complex transactions involving out-of-state sales or credit unions might take longer due to additional documentation requirements.
DealNow lets you buy a car in as little as a day or two. If you pre-load your funds, you can find a car, pay instantly, sign the documents, and be on your way in a couple of hours.
DealNow is the easiest way to close your own vehicle deal, anytime. It’s the safe and simple way to avoid fraud, sign documents, and instantly transact, all in one app.
