When buying a car, it’s worth weighing up your options. This includes not just comparing different models of car, but also comparing the different ways to purchase a vehicle. This post compares them and their pros and cons.
Private seller
When it comes to getting the best deal on a used car, buying from a private seller is the best option. A private seller could be a friend or a complete stranger. There is sometimes more trust when buying from friends and you may even get ‘mates rates’, however there may not be any guarantee that anyone in your social network is selling a car (especially a specific model). Therefore, many people buy from strangers that they find through adverts on the likes of Facebook Marketplace or Autotrader. When buying from a private seller who you don’t know in person, you need to take certain precautions to ensure that you’re not scammed (such as verifying they are the actual owner and test driving the vehicle). Here are just a few tips for safely buying a car from a private seller.
Used car dealership
Used car dealerships are official companies that sell used cars. Unlike buying from a private seller, you often have the security of a warranty and a contract when buying from a dealership. You can also compare and physically inspect a variety of vehicles in one place when buying from a used dealership in person, plus a dealer can help you apply for finance. If you’re looking for quality car sales, make sure to look up online reviews and ask friends for recommendations. Understand that buying from a dealership can often be more expensive than a private seller.
New car dealership
New car dealerships specialise in selling brand new cars. These are obviously a lot more expensive than new cars, but also likely to be more reliable and have more advanced features than used cars. While some new car dealerships sell a variety of car makes, many focus on a specific car make and may be able to order cars directly from the manufacturer with various customised features catered to your specs. Finance is typically available, although you may not have as many finance options as you would through a used dealership. It’s worth noting that some dealerships sell new and used cars.
Auction
Car auctions involve buying vehicles by placing the highest bid. They can take the form of online auctions or physical auctions. Generally, you have a chance to look at cars in a catalogue first and even inspect them in a showroom (in the case of a physical auction) before the bidding begins. Such auctions can be a place to buy rare and valuable cars – often while competing against dealership owners and car experts. However, you can also buy regular cars at some auctions for a very cheap price. Read this guide to buying a car at an auction for more information.
Lease purchase
Leasing a vehicle is essentially like renting a vehicle. There are specialist lease dealerships that you can lease cars from (some of which may also sell cars). The benefits of leasing are that you can access more valuable vehicles at a cheaper monthly rate than if you were to buy on finance. You also have the opportunity to trade in a vehicle for a new one every two years. However, when leasing a vehicle, you do not own it – which means you cannot permanently modify it or sell it. The exception is a lease purchase where you may have the option to buy the car at the end of a lease agreement. However, lease payments do not go towards the purchase price of the car, so you can pay a lot more overall than if you were to buy the vehicle from elsewhere.