Australia is a nation that loves its cars. In the last decade, Australia has purchased over 1 million vehicles. Our used car market now sells around 3,000,000 units per year. These are huge numbers, especially compared to the relatively small number of people in our country.
This means there’s never been an ideal time to buy used cars. The global pandemic has brought many changes and challenges to the automotive industry. More and more Australians now buy used cars from reputable dealers.
Where do you begin? Who should you deal with to buy a used car in Brisbane, and why?
We compare the pros of buying a used vehicle privately versus purchasing used cars from Brisbane dealers.
Comparing the two options of buying a used car privately versus from a dealer
You must decide whether you want to purchase a used vehicle from a private seller or a licensed dealer. This decision will affect every aspect of the buying process. From the price to the payment options, the vehicle’s condition, warranties, and safety.
Benefits of buying used cars privately
A private sale can offer a lower price than a dealer. Dealers have a variety of overhead costs, including vehicle reconditioning and advertising, that are incorporated into the price.
Private sellers may also need to learn the actual value of their vehicle and base prices on comparable cars advertised. This can be a good thing for you to get a better deal, but it can also lead the seller to have an overinflated opinion about their car’s worth. You can be sure that a dealer knows what a car is worth today and has listed the price appropriately. This ensures that you get your money’s value.
A private seller may be more motivated to sell their vehicle. It can make them more receptive to negotiations, allowing you to get a better deal.
The disadvantages of buying used cars privately
A private car sale will not include a warranty nor the option to extend it. If something goes wrong after purchasing the car, you must pay for the repairs. A used car purchased privately is riskier than one bought from a licensed dealer because there is no warranty.
The cars are sold ‘as is’
It is unlikely that a mechanic will guarantee the condition of a car you purchase privately. It is your responsibility to fix any defects found after the purchase of the vehicle, which is often not visible to an untrained eye.
It is best to have a professional inspect the car to ensure it is in good condition. You must pay for the inspection and arrange it with the seller. If you need more than the condition of a car, you can pay to have it inspected again.
You will need to pay for this service after purchasing the vehicle, as the seller is not obligated to clean and detail the car.
You Buy at Your Own Risk
Privately purchasing a used vehicle comes with a variety of risks. Car sales are not an exception. Con artists will take any opportunity to defraud the unprepared buyer. Privately purchased cars are at risk, whether they’re trying to sell a vehicle that has been temporarily repaired and is likely to break down or they’ve forged documents for a stolen or damaged car.
You may also be at risk of injury when you buy from a private seller, as you’ll have to meet with an unknown person to test-drive and inspect the vehicle. This can compromise your safety. You should meet the seller at a public location and bring one or two trusted people to reduce the risk.
Limit Payment Options
When buying a privately advertised car, you’ll have to pay upfront, either in cash or via a bank transfer, depending on the seller’s preference. You cannot finance your purchase at the point of sale. You must arrange a personal loan with a bank if you need more money to buy the car fully.
The process is time-consuming.
You, as the buyer, are responsible for organizing and submitting all the paperwork required to transfer the car into your name. A private sale does not allow for trade-ins, so you must also sell your vehicle. This can be a long and frustrating process, as potential buyers may back out at the last minute or negotiate a price.
What are the advantages of buying a used car from a dealer?
Warranty and Certification provided
A dealer can offer a warranty and certification for a used vehicle. Downtown Toyota provides an extended warranty on new cars PLUS another 12 months for more recent vehicles.
Toyota technicians carry out the 90-point certification inspection. Our 1-year warranty ensures your car is in excellent working order upon purchase.
The Dealer takes care of everything.
A dealer will make the process much more accessible than buying privately. You will work with professionals who know the ins and outs of car sales. The Dealer will handle all paperwork related to the sale of your car. You can relax and enjoy the new vehicle.
Alternative Payment Options
Dealers offer other payment options than cash or bank transfers, which are required to purchase a vehicle privately. If you prefer, your chosen Dealer can arrange the financing on your behalf. This is a far simpler option than trying to get a personal loan from a bank.
Many dealers also offer the opportunity to trade in your vehicle to lower the price of the chosen vehicle. This will save you money upfront and eliminate the need to sell your car privately.
Enjoy Peace of Mind
A dealer can also provide peace of mind to the buyer by providing a warranty and certification. You can be confident that your car, which has been professionally cleaned, will arrive in excellent condition when you buy through a dealer. This is in contrast to buying privately, where you may have to accept the state of the car.
The peace of mind that comes with meeting a professional who will walk you through all the car’s features and give you a test drive is worth the risk of meeting a stranger for a private sale.
When you buy from Downtown Toyota, you’ll receive a thorough Car History Check to ensure that the vehicle is free of any finance and is accident-free.
The disadvantages of buying a used vehicle from a dealer
A dealer’s added costs can result in a slightly higher price for a used vehicle than if you bought it privately. When purchasing from a dealership, you can be confident in the car’s condition, know that it is free of encumbrances, and enjoy a hassle-free transaction where all the paperwork will be handled.
Limited Car History
A dealer will not provide you with a complete car history, as you won’t be purchasing the vehicle from its original owner. When you buy a Toyota Certified Pre-Owned vehicle from Downtown Toyota, we include a comprehensive car history check that will provide all the essential information about the vehicle’s past and its entire service history.