From Dealerships to Private Sellers: Pros and Cons of Different Buying Channels

Buying a car is one of the biggest purchases many people will make. With the average price of a new medium-sized car such as a Ford Focus coming in at around £27,000 in 2024, it’s important to consider your options carefully when deciding where to buy. The two main channels for purchasing cars are through official dealerships or from private sellers. Both options have their own unique pros and cons to weigh up.

Buying from a Dealership

Dealerships have long been the most popular way for people to purchase new and used vehicles. Here are some of the key advantages and disadvantages of going through a dealership when buying a car:

Pros:

• Wide Selection – Dealers offer a large range of makes, models, years, specs, colours, etc. This makes it easier to find a car that ticks all your boxes.
• Warranties – New cars come with manufacturer warranties. Many dealers also offer extended warranties on used cars for added peace of mind.
• Certified Pre-Owned – Some dealers offer “certified pre-owned” used cars that come with extra inspections and warranties.
• Financing – Dealers make financing easy by arranging loans or leases on-site. This simplifies the buying process when you’re buying new or used cars on finance.
• Trade-ins – Dealerships will often accept your old car as a trade-in and deduct its value off the price of the new car.

Cons:

• Higher Prices – Dealer prices tend to be higher, especially for used cars. They have large overheads to cover.
• Pressure Tactics – Highly trained salespeople may pressure you into additions like extended warranties that boost their commissions.
• Fewer Disclosures – Private sellers tend to be more forthcoming about a vehicle’s history and flaws.

Buying from a Private Seller

Purchasing a car from a private seller has become more popular with the rise of online listing sites. Here are some key pros and cons of this approach:

Pros:

• Lower Prices – Private sellers don’t have the same overheads, so their asking prices are usually lower. There is usually more room to negotiate.
• Learn the Car’s History – Private individuals are more likely to share details on past owners, mileage, repairs, issues, etc.
• Avoid Dealer Hassle – There’s less back-and-forth negotiating and no financier pushing extras. The process is typically smoother.
• Personal Service – Often you communicate directly with the owner, getting a sense of how the car was driven and maintained.

Cons:

• Limited Selection – Choices are dependent on what’s currently listed for sale in your area. Less variety.
• No Warranty – Most private sales are as-is. There is no fallback if undiscovered problems emerge.
• Arrange Own Finance – You’ll need to sort out financing with a third-party provider before purchase.
• DIY Inspections – No certification process to rely on. You’ll have to inspect the car yourself or pay for a check.
• Transfer Process – Handling the paperwork and legally transferring ownership is something you do, not the dealer.

Weighing Your Options

There are good reasons to consider both dealers and private individuals when looking for your next car. Take time to research prices and options in your area to determine the best value. If you buy privately, get a vehicle history report and enlist a mechanic to inspect it before purchase. Be sure to follow all legal steps to transfer ownership properly.

Making an informed decision will help ensure your next car meets your needs and budget.