For most people, the Pros and Cons of buying a car from a dealership can be both an exciting and stressful experience. It’s exciting because you’re getting your dream car at a great price, but stressful because you want to make sure that the car you’re buying doesn’t have any hidden defects.

The car also does not have issues that will cost you more money later on down the road (and put you in danger). Whether you decide to buy from a private seller or from a dealer, it’s important to take into account the pros and cons of each option when considering how to find your dream vehicle.


Pros and Cons of Buying a Used Car


The Benefits of Buying New vs Used Cars

If you’re thinking about buying a used car from a dealership, you might be wondering whether it’s really worth it to buy a new one. When it comes to cars, there are definite advantages and disadvantages to both.

Below we’ll look at four common questions related to used cars in order to help you make an informed decision.

The Advantages of  Car Buying From a Dealership

There are many advantages of buying a car from a dealership. The most obvious is that you get some kind of warranty protection on your purchase. In addition, when you buy from a dealer, they have an incentive to make sure your new car will last for years.

So they’ll take good care of it as well as provide routine maintenance at no extra cost. Often there’s also a fleet department that will run checks on used cars for consumers.

Disadvantages of Buying a Car From an Individual

One disadvantage of buying from an individual is that you have no recourse if something goes wrong with your car. If there are issues after you drive off in your used car, it can be difficult to track down previous owners to resolve any problems.

Another problem with buying from an individual is that you don’t get warranty protection for your vehicle. Most cars come with a warranty for at least one year, but some last much longer.

Tips For Negotiating With a Car Dealer

Make your negotiating position strong before entering into discussions with a dealer. Find out what your vehicle is worth by using one of several popular online valuation tools to see how much similar cars have sold in your area, factoring in condition and mileage.

Also, determine what you can realistically afford before shopping for an auto loan. Not only does pre-planning make you look confident when talking to dealers, but it will also allow you to easily walk away from situations that aren’t meeting your expectations.

How to Buy a Car in Cash

You’ll need to make sure that you have extra cash on hand in your pocket to purchase your car. Your salesperson will help you figure out what financing option works best for you, but keep in mind that if you decide to finance through them.

There may be other costs as well like an origination fee that is added to your loan amount. To save money and time, it might be best to pay with cash.

The Main Reason People Buy Used Cars

Only about 10 percent of car buyers actually go to a dealership to pick up their new ride. The rest purchase used cars from private owners, receive them as hand-me-downs or buy them outright.

There are many advantages and disadvantages to each option, but you have to decide for yourself which is best for you. Here’s what you need to know.

Tip To Get The Best Deals Of Cars

You have to Do your research online. There are several comparison websites that can help you make sure you’re getting a good deal on your car, including Kelley Blue Book. Once you’ve chosen your car, try to schedule an appointment to test drive it on a weekday.

It will be easier to get more personal attention from salesmen. And if possible, bring in another party with you when you go to negotiate; most people feel more comfortable negotiating in groups.

How to Test Your Car Before Making an Offer to a Seller

Before making an offer on any used car, it’s important to get it checked out by your mechanic. Your mechanic will be able to tell you whether or not there are any major problems with your potential purchase such as engine or transmission issues that would make it unsafe to drive.

It’s also important to ask about any mechanical issues with a seller before making an offer. Having good communication is crucial for both sides during negotiation.

What Kind of Things Can You Negotiate on a Car Purchase?

Here are some items you may be able to negotiate on if you’re buying from a dealership: floor mats, rust-proofing or anti-theft devices, window tinting, wheel locks, or dealer-installed accessories.

You might be able to get these items for free (or at an additional charge) but usually not included in your purchase price. Ask about these when you negotiate your price with them.

Considerations When Paying Cash vs Financing

When buying a car, one factor that is often debated between prospective buyers is whether to pay cash or finance. There are many pros and cons to each side that should be considered before purchasing.

If you plan on paying cash for your new vehicle, be aware that it may take longer to find exactly what you want.

Resources to Help you Find the Best Car Deals

Kelley Blue Book or NADA (National Automobile Dealer Association) can help you get an idea of what your used car is worth. Check out Consumer Reports for user-generated reviews about dealerships in your area.

If you’re not sure where to start, check out dealer rating services like BizRate, Site Jabber, or DealerRater. These websites provide ratings from customers who have worked with local dealers.

Below are some Pros and Cons of Buying a Used Car From a Dealership,

Pro # 1: Sticker Price

New cars depreciate as soon as you drive them off the lot, so buying used cars not only saves you money upfront but potentially thousands in depreciation costs down the road.

Plus, new car prices are negotiable and if you buy from a dealership, there’s another dealer that will want to buy your used car for its trade-in value at some point.

Pro # 2: No Salesmen

The car salesman is, quite possibly, one of humankind’s greatest annoyances. No matter how you try to avoid them (by buying online or over the phone).

There’s always the one who just won’t take no for an answer. Buy from a dealership and never deal with these pests again! The best part?

Pro # 3: Discounted Financing

Dealers often offer lower interest rates because they buy so many cars at once. This can save you as much as thousands of dollars over many years. However, keep in mind that dealers want to move inventory quickly, which is why they offer great deals on financing.

You need to avoid taking on too much debt. There is a good way to start by giving down 20% of your car’s price. This is known as down payment equity.

Con # 1: Value can be Compromised

For example, you might pay significantly more for a used car from a dealership because it is sitting on their lot in plain sight. The longer it sits, chances are that price will only go up. As for buying online?

It’s hard to tell if you’re getting yourself into trouble be sure to check with your local DMV before making your purchase.

Con # 2: Sales Tax

Just about every state charges sales tax on new cars, but not necessarily on used ones. If you buy from a dealership, prepare to pay around 5 percent in sales tax which adds up when you’re buying an expensive vehicle.

It’s also possible that your car will be subject to luxury taxes in certain areas (such as Beverly Hills, California), which can tack an additional 1–3 percent onto your final price.

Con # 3: Cost of Repairs in the Future

If you buy a used car from an individual, there’s not much they can do if your car breaks down you’re on your own. If you buy from a dealership.

However, there is usually some sort of warranty or extended maintenance deal included in your purchase price. When that stuff breaks down later on down the road (and it will), you have a place to go for repairs.


I have been looking into buying a new car, but after hearing all these things about the Pros and Cons of Buying a Used Car From a Dealership I might have to rethink that idea. It’s crazy how much they are demanding to pay for these cars.

I don’t think I will ever buy a used car again because that could be dangerous if you don’t know what you’re doing. This dealership is probably just trying to rip people off. Next time, if I want to buy a car I think it will be smarter for me to buy from an owner.

Hope you have learned a lot from this article about the Pros and Cons of Buying a Used Car From a Dealership and it will help you to purchase a good used car from a dealer.

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