Buying a used car with direct seller VS dealer, which one is less risky?

(Photo Credit: Freepik)

There is some risk in buying a used car, as some sellers may take advantage of those that are inexperienced.

There's also the issue of differences in interminology. In the second-hand car industry, there are two types of cars, Namely “Home Car” and “Dealer Car”.

Most people have the misconception that the former will always be cheaper than the latter. But it might not always be the case.

Before deciding which type of used car to purchase, let's first understand the differences between them! 

Home Car

A home car is a car registered in the name of an individual and the owner has always used the car himself. There are some advantages of buying a home car, such as having access to its detailed history. Ensure the data is checked against a reputable source though, such as service records or even against past insurance documents.

The sale prices for these vehicles tend to not be set, as not every car owner has experience, or the expertise, in setting prices. You can snag a bargain, but you can also equally end up overpaying for a vehicle.

You have to be able to accept some risk, which includes no guarantees of running condition, or any buy-back protection and after sales support. It can be difficult to apply for a loan too.

(Photo Credit: Roojai)

Dealer Car

A dealer car can be purchased via, you guessed it - a dealer. Typically, in between owners, the dealers would have sent their inventory for thorough checks and even refreshes where necessary to fetch the highest sale price.

If you need financing, dealers often have partnerships with banks, or even their own in-house loan. Approval is usually expedited, and you may receive other special privileges such as preferential interest rates.

Big name dealers will sell their stock for more, as they have higher overheads. They may also have more comprehensive buyer-protection plans, such as limited warranties post purchase. Buy from a smaller dealer to enjoy cost savings, though you'd be less covered should something go awry.

Our top tip - buy from direct buyers if you have the confidence in settling all of the paperwork. Otherwise, the peace of mind offered by a dealer is worth the price premium.

Sincere buyers and reputable sellers use Motorist to transact their vehicles! We are transparent in every step, and help is always on hand if needed! You can now confidently buy and sell your vehicle on your own!

Read More: Selling a car to a dealer vs a direct buyer

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