Good buys on a used car can be made from either a local car dealer or a private party. There are pros and cons to either type of purchase.
Pros and Cons of Buying from a Used Car Dealer
When a buyer needs to take out a loan to purchase a car, it is often easier to go through a dealer. Car lots usually have a good selection of vehicles to choose from, and access to even more if there is not one the buyer likes sitting on the lot.
A car purchased from a dealer can be financed and the payments spread out over a certain period of time, usually around five years. Banks or other lending institutions will usually approve a car loan from a car dealer as long as the buyer has a decent credit rating. Car lots often have their own financing available, as well.
Used car lots also usually offer some kind of warranty. The length of the warranty varies and may range from thirty days to a year. Most of these are not comprehensive, but cover engine and other major mechanical repairs. Many car dealers also sell extended warranties at and additional cost to cover a longer period of time.
The cons of buying a car from a used car dealer is that the price of the car is usually higher than a privately-owned vehicle so the dealer can make a commission. The buyer also has to pay interest on the loan, and sometimes that interest can be high. It is important to trade with a dealer with a good reputation.
Pros and Cons of Buying a Used Car from a Private Party
The best deal on a used car can often be made by a private seller, especially if the buyer has cash on hand. A private seller is usually very eager to unload an extra car, and will often settle for a much lower price.
A good low mileage, one-owner vehicle can be a very good buy. However, the cons of buying from a private owner is the buyer must pay cash or find their own financing, which can be difficult. There is also no warranty in case something goes wrong.
Tips for Buying a Used Car
When buying a used car, a consumer must consider whether they want to make payments or pay cash up front. Where a car is purchased may also depend upon the financing available.
Whether purchasing from a car lot or a private owner, it is always a good idea to compare the blue book value and get the car checked by an independent mechanic to make sure it is in good condition.
Click the Kelley Blue Book link to check the blue book value of a used car.
Readers may also enjoy the article Pros and Cons of Buying a New Car in the Current Economy.
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