Buying a used car...dealer vs private owner, pros & cons?

[traces7]

We're trying to find a car for my 16 yr old DD. She's driving my old 2000 Chevy Malibu that has 275,000 miles on it right now, but it's just not safe to drive anymore and it's slowly breaking down. We only let her drive it in town now.

So anyway, we don't have a lot of money to spend, about $4000 between what DD has saved and what we can give her. So far we have not been finding much at dealers for that price range. There have been a few cars on Craigslist that sound good, but buying from a private party just scares the heck out of me. We've only done it once and it wasn't a good experience. Although we've had at least 1 bad experience with a dealer also.

Can anyone give me any advice about buying from a private party? Or any advice in general? Thanks so much!

 

[disneymomto5]

I'm following, since I'm in the exact same boat.....

 

[Lvsdisney]

If you're going to buy from an individual, ask for service records. They should also allow you to take the car to YOUR mechanic to look over. (They may ask for collateral so you won't just steal it). Buying privately will probably get you a better price.

Buying from a dealer, you'll most likely have some kind of warranty (even a 3 month one...you can negotiate those) and you can also get financing more easily (should you need it) but most likely you'll end up paying more.

It's basically what are you more comfortable doing.
Also, don't just look on craigslist. Check out autotrader dot com and cars dot com for used vehicles. They have both private and dealers on those.

 

[pjlla]

I would imagine that RELIABILITY is a main concern, so do some research, maybe through Consumer Reports regarding that. Next up I would figure out where you can get the car SERVICED for a reasonable price. My DH is fan of Saabs and as such we now own two (one is his, the other is shared by our children) and the repairs are INSANELY expensive.... no matter what little thing it is, I can expect the bill to approach $500-$1,000.... EVERY TIME! My Honda just had a repair that cost me under $200 including a front end alignment!!

I agree that a private sale is the best way to save money. Find a car that has been for sale for at least 30 days... the seller is probably a bit more desperate by then. And be sure to offer cash..... offering cash, up front, is hugely appealing for someone who is desperate to sell. And be willing to travel a bit.... I wouldn't pass on a great sounding deal even if it meant I had to drive an hour or more.

I also agree with taking the car to your trusted mechanic for a check BEFORE buying is a good idea.....but not always practical... especially if the car in question is located further away from home.

ASSUME that there is going to be SOMETHING wrong with the car that will need fixing within the next few weeks.... tie rod ends, ball joint, brake job, timing belt, and plan accordingly financially. It doesn't mean you got a bad deal or a lemon.... but with older cars something is bound to creep up sooner or later.

Personally, I would stay away from ANYTHING that has a salvage title. I know some folks claims that it can be a great deal, but "been there, done that, NEVER going back!!"

Best of luck with your search.........P

 

[xlxo]

I guess going private means avoiding the tax..... I'm not mechanical.... so I want that dealer with a warranty.

When buying used.... also consider the make and model.... some models have a history of problems online.

 

[traces7]

Thanks so much for all the replies so far! I'm going to check out autotrader.com and cars.com. I have also found cargurus.com.

Yes we would like something reliable. Insurance is also a concern, we'd like something that isn't too expensive insurance wise. We saw one on craigslist yesterday that was from an auto broker. I guess they get cars that people trade in when they buy new ones.???? It was a 2009 Chevy Cobalt for $4000, but it did need some repairs (has a bent rim, so probably needs new tires and alignment we were thinking). It only had 95,000 miles on it. We didn't even go look at it though. Still wondering if we should.

Another thing we're finding is that a lot of cars have open recalls on them. So I'm hesitant on that too.

We are leaning toward going with a dealer if we ever find a car in our price range at a dealer. We like the idea of a warranty too. Oh well, the search continues.....

 

[tvguy]

I guess going private means avoiding the tax..... I'm not mechanical.... so I want that dealer with a warranty.

When buying used.... also consider the make and model.... some models have a history of problems online.

At least in California, the tax is identical no matter who you buy a car from. 8% in most parts of the state, more in communities that have tacked on their own additional sales tax.

 

[tvguy]

No matter who you buy from, have a trusted mechanic check out the car before you buy. In California, dealers are required by law to allow you to have a car inspected by a mechanic, private parties are not.
I was used car shopping last year and the biggest issue I seemed to run into with private party listings was they would not allow an inspection, and they made it clear, the price was not negotiable, usually on a vehicle that was priced over Kelly Blue Book and NADA values. 2 cars I looked at over a year ago are still for sale at the same price. One had a salvage title and the seller made it clear it would stay in his garage until someone made a full price offer. Another guy, was even hesitant to let me test drive the car and said his armed friend (an off duty cop) would go along for security!

 

[kathy884]

I bought a late model SUV from Enterprise Rent a Car that I've had for two years now and am very happy with. They just happened to have what I was looking for, so I went with them instead of buying a new car and saved a lot. I'm just mentioning this, in case this is another source you want to look at. This came with a warranty and the power train warranty from the car manufacturer also went to me. They were a hassle free no haggle place. It was super easy and actually a pleasant experience buying there and I would consider doing this again, the next time I'm in the market for a replacement car. For me, usually that's just every 10 year or so.

 

[Lvsdisney]

I bought a late model SUV from Enterprise Rent a Car that I've had for two years now and am very happy with. They just happened to have what I was looking for, so I went with them instead of buying a new car and saved a lot. I'm just mentioning this, in case this is another source you want to look at. This came with a warranty and the power train warranty from the car manufacturer also went to me. They were a hassle free no haggle place. It was super easy and actually a pleasant experience buying there and I would consider doing this again, the next time I'm in the market for a replacement car. For me, usually that's just every 10 year or so.

I forgot about this but my BIL bought his first car the same way. I think Hertz also sells their used rentals.

 

[tvguy]

I forgot about this but my BIL bought his first car the same way. I think Hertz also sells their used rentals.

Yes, Hertz sells the best of their rental fleet, and wholesales the rest. I bought both my kids Tauruses from Hertz, DS a 2006 in 2007, DD a 2007 in 2008, both cars have worked out well. Both had under 30,000 miles on them, both cost less than $10,000.

 

[georgina]

At least in California, the tax is identical no matter who you buy a car from. 8% in most parts of the state, more in communities that have tacked on their own additional sales tax.

Yes, I can't imagine how the state would transfer the title without paying tax on the sale, although I know sometimes the sales amount is misstated (lower) for the purpose of the transfer.

I know we sold a car once for $2000 and a couple months later they said something went wrong but I have no idea if something they did caused it. That was the first and last time we sold a car privately. Sold our last car to webuyanycar dot com instead.

 

[xlxo]

Yes we would like something reliable. Insurance is also a concern, we'd like something that isn't too expensive insurance wise. We saw one on craigslist yesterday that was from an auto broker. I guess they get cars that people trade in when they buy new ones.???? It was a 2009 Chevy Cobalt for $4000, but it did need some repairs (has a bent rim, so probably needs new tires and alignment we were thinking).

A quick way to identify lower insurance rates in my area is the number of doors. 2 door vehicles have higher annual insurance fees.

Some vehicles are near write offs in a collision. Hybrids have too much electronics. Sadly nearly every vehicle has an airbag now. Some vehicles have nearly a dozen!

 

[tvguy]

Yes, I can't imagine how the state would transfer the title without paying tax on the sale, although I know sometimes the sales amount is misstated (lower) for the purpose of the transfer.

I know we sold a car once for $2000 and a couple months later they said something went wrong but I have no idea if something they did caused it. That was the first and last time we sold a car privately. Sold our last car to webuyanycar dot com instead.

Which is why you need to put in the sales receipt that the sale is "As Is, No Warranty". I have only sold one car private party, and that was 34 years ago and the calls I got from the ad were all from clueless people. The ad said 2 door coupe. Got a couple of calls asking if it was a station wagon. Got a calling asking if it was a 4 cylinder.....they never made this car with a 4 cylinder....and a call asking if it was a diesel, they never made a diesel version.
When my mom's car needed more repairs than she wanted to make, I tried donating it. That was a joke too. The private company that runs all the local charity car donor programs finally called me after I was rejected 4 times to explain that why only wants cars less than 10 years old, with less than 100,000 miles, with a current smog certificate, ready to resell. If that car met those stanards, I wouldn't be getting rid of it! Now, I buy from a dealer, and they pay me for my trade, or there is no sale.

 

[herdtoDisney]

Thanks so much for all the replies so far! I'm going to check out autotrader.com and cars.com. I have also found cargurus.com.

Yes we would like something reliable. Insurance is also a concern, we'd like something that isn't too expensive insurance wise. We saw one on craigslist yesterday that was from an auto broker. I guess they get cars that people trade in when they buy new ones.???? It was a 2009 Chevy Cobalt for $4000, but it did need some repairs (has a bent rim, so probably needs new tires and alignment we were thinking). It only had 95,000 miles on it. We didn't even go look at it though. Still wondering if we should.

Another thing we're finding is that a lot of cars have open recalls on them. So I'm hesitant on that too.

We are leaning toward going with a dealer if we ever find a car in our price range at a dealer. We like the idea of a warranty too. Oh well, the search continues.....

Honestly, at this price point, you can probably get more for your money from a private person. I would probably go check out that Chevy. Those Cobalts are good llittle cars and not expensive on insurance. Any car in this price range might need some minor work, tires, belts, whatever , but if in good shape, should be good transportation for your dd. We've gotten a few 'teen driver' cars this way (we're on teen 4 now).

 

[HM]

Sometimes car mechanics know about good deals on cars.
Do you have a place where you could ask?

 

[traces7]

Sometimes car mechanics know about good deals on cars.
Do you have a place where you could ask?

No we don't have anyone we can ask, but we do have lots of friends looking also.

Honestly, at this price point, you can probably get more for your money from a private person. I would probably go check out that Chevy. Those Cobalts are good llittle cars and not expensive on insurance. Any car in this price range might need some minor work, tires, belts, whatever , but if in good shape, should be good transportation for your dd. We've gotten a few 'teen driver' cars this way (we're on teen 4 now).

I think there is more wrong with that car then they are saying. Also there are recalls out for it. Which is another thing we're running into. I'm not sure if the recalls can't be done or what. Some people at work have told me that many recalls are on hold because the parts aren't available. I don't want to buy a car that has a recall for something that could be dangerous, but not able to be fixed until the part is available. I'm not sure if this is really the case. Anyway we're still watching and saving money and hoping that something comes up!

 

[Darcy03231]

If the max amount you can spend is $4000, then you should be looking in the $3000 range. This is the range we looked in for our kids when they first got their licenses. We bought through private sales and the cars in the $3000-$4000 range all need something. Once we got lucky and the car didn't need anything, but the average was $500-$800 to get it inspected.

 

[disneysteve]

Sadly nearly every vehicle has an airbag now.

I'm not sure what you mean here. Are you suggesting that airbags are bad things?

OP, I'm in the same boat too. We need to get a car for DD-20 in the next couple of months so we're trying to figure out what to do. We've never bought privately and I have no desire to. The problem is that the dealers tend to have newer models with higher prices. Most of their used inventory is cars coming off of 2-3 year leases. When you only want to spend $5,000-10,000 though, not much to pick from. I'm not sure what we're going to do. I do trust my mechanic, though, so I may ask him to be on the lookout for something.

 

[xlxo]

I'm not sure what you mean here. Are you suggesting that airbags are bad things?

In a severe crash.... air bags increases the likelihood of your survival.

However.... how much is it to replace each airbag? How many will detonate in a crash? I think the Dodge Caravan has 10 airbags. If the vehicle is fine.... but all those airbags are too expensive to replace... the insurance company will just write the vehicle off.