Buying Used Cars From A Dealer Vs An Individual Seller - Which Is Better?

Buying a car can be a tedious task, especially, if you are planning to get a pre-owned vehicle. In addition to finding the right model and deal, you also need to check if the car has any problems or issues, if the paperwork is in order, and also the reliability of the seller. Now, one option is you go to an organised/branded used car seller where most of these things are already taken care of for you. Although, such cars also come with a higher premium for all those services. The other option is you can save some money and buy from an individual seller, however here reliability becomes a matter of concern. So yes, both options have their own Pros and Cons, and we going to tell you about them.

Also Read: Buying A Pre-Owned Car vs A New Car - Which Is Better?

Organised Used Car Dealer

Pros

1. An organised or branded used car seller will almost offer you the same buying experience as a new car dealer. They have professional sales representatives who can help you select the right car, plus, you can see multiple cars in one go and choose the one that suits you best.
2. Most dealers also offer warranty and service packages for used cars. A small dealer might offer you up to 6 months of warranty, whereas a larger organised brand will offer you up to one year warranty and other after-sales benefits.
3. Organised dealers offer certified used cars, which means they have gone through all necessary checks and inspections. Also, the dealer will take care of all the paperwork for you like RC transfer and insurance.

Also Read: 5 Myths of Buying A Used Car Busted 

At a used car dealer, you can see multiple cars in one go and choose the one that suits you best.

Cons

1. Given the services they offer, cars sold by organised dealers will be more expensive. Expect a premium of at least 20 per cent compared to what you might pay to an individual seller.
2. A lot of small used car dealers work as middlemen between a seller and buyer, in which case, there will be a commission or brokerage amount involved. Also, while some dealers will include the charges for the paperwork in the brokerage, others might charge you for that separately. So, it's important to clarify that before signing the deal.
3. There is only so much that you can negotiate with a used car dealer, after all, you are dealing with a business. At the most, they might offer you some extra after-sales benefits.

Also Read: Here Are 5 Things You Must Check When Buying A Used Car 

Owner/Individual Seller

Pros

1. Buying from an individual seller or owner means you have a better chance of negotiating a price that suits both of you. So, you can get the car at a much cheaper price.
2. There are no extra costs here because as opposed to a dealer, they don't have to pay for reconditioning the vehicle, sales representative, commission, and advertising which are usually passed on to you by an organised seller.
3. An individual seller likes to close the deal quicker. In most cases, they are selling the vehicle to upgrade to a new one, so they would want to close the deal as soon as possible if they find someone genuinely interested in buying their vehicles.

With an unknown individual seller reliability is a matter of concern.

Cons

1. You are buying the car from a complete stranger, so reliability is a matter of concern. You do not know the condition of the car. Take a proper test drive, check the paperwork, and if you have a trusted mechanic take them along for a quick inspection.
2. You will have to go through the hassle of doing all the paperwork by yourself, which involves the transfer of the registration certificate and getting second-hand car insurance among others. So, there will be some legwork to do.
3. There is no such thing as a warranty when you are buying from a private seller. It's your responsibility as the buyer to ensure that the vehicle is in good condition to avoid future regrets.