Used cars (also known as "re-sale" cars) can be purchased from both Used Car Dealers and Private Owners. You will want to keep a look out for a car which is very well maintained and never been through an accident or given any major problems. Buying from used car dealers is recommended; you are more likely to find a well maintained car through a dealership as dealerships have to ensure that the cars are of a minimum level of quality and are thus more likely to be particular about the conditions.

Buying from owner saves you money but is it worth it?

Price

When buying directly from private owners, price would be the biggest plus point. Car dealers are middlemen and are making a profit from the sale. On the other hand, owners have greater flexibility with respect to pricing and are usually able to offer a lower price compared to dealers.

Warranty

Nevertheless, keep in mind that while private owners may offer used cars at more competitive prices, they do not provide any warranties.

On the other hand, most car dealers do provide a short warranty period of a few months from the date of purchase. Always remember to ask the dealer for the warranty, the duration of the warranty, and what it will cover. They should also preferably provide a written promise of the warranty. Without such written proof of warranty, the dealer could simply refuse to perform the warranty when you return with a problem. However, such instances are extremely rare. Most dealers provide excellent post-purchase service to ensure that you go back to them the next time you want to buy another car.

Paper Work

Should you decide to buy a car from a private owner, be prepared to do a bit of running around. The transfer of ownership will require about two to three trips to the LTA, as well as a bit of waiting time. If the seller's car is still being financed by banks, much more administrative work has to be done.

Never agree to any kind of private financing settlement relating to the purchase of the car or you could find yourself victim to yet another car scam. Even many experienced car dealers have been duped before, so be prudent, or you may end up paying for a car that has already been exported out of the country.

Sales assistance

If you are very particular about the model of the car you are buying, you will probably need the help of car dealers. Dealers usually have a good variety of cars on sale, and even if they do not have what you are looking for, they will be able to refer you to another dealer which has the car you are looking for. Always remember to let the sales assistant know your budget, which cars you are looking at, and any other concerns you may have about the car you want to buy. They will definitely be able to help address your concerns.

The sales assistant being in the motor industry, will generally be more experienced than most car owners. They will thus be better able to answer your questions. Afterall, buying a vehicle is a pretty complicated matter with all the ownership transfer documentation, insurance processing, loan application, etc.

Loans

Dealers usually know the interest rates, maximum loan and tenure for the vehicle you want to buy. Private owners do not generally know such information. Thus, buying from a dealer could save time, which might have otherwise been wasted on consecutive rejected loan applications.

Dealers also usually help buyers apply for loans. A major advantage of used car dealers is that they are one-stop centres. Buying direct from owners could mean making several trips to banks, the LTA and insurance companies.

Viewing of vehicle Car dealers offer a variety of choices of cars, especially if they are located at one of the major car marts. If you are at a dealer and do not like the vehicle that you had initially chosen, there will always be other similar cars to view. When viewing the car of a private owner, there will be no such alternatives. Since the owner will most likely ask you to go to his location for viewing instead of driving the car down to you, much time could be wasted travelling around to meet various owners.

A used car dealer showroom

Vehicle condition

Most dealers will groom their vehicles to their best sale condition. This means that they will polish and shine the cars, repair knocks and dents, and change all worn out parts.

In comparison, most used cars from private owners would not be in top shape, especially since the owners intend to sell them off anyway.