Private Party Auto Sale Myths, Debunked

Private party auto sales are the best place to find deals on used cars and yet many people choose to shop at the dealership instead. The perceived safety of a reputable dealer allows buyers to stay within their comfort zone but this isn’t always the best place to be. Stepping into the world of private party sales gives buyers more options.

It’s no myth that vehicles sold privately tend to be less expensive than the same cars purchased at a dealership. Don’t let private car sale myths hold you back from opening up a larger pool of cars to choose from. Here are six myths debunked.

Private Sellers Are Not Trustworthy

Dealerships are bound by industry regulations which protect buyers. It is their goal to generate as much profit as possible but they must obey the legal processes followed by the automotive industry. When you buy at a dealership you can expect that the information you have been given is correct and that the deal is honest.

Because dealerships are regulated by certain rules private sellers tend to be regarded with suspicion. This drives the private car sale myth that you are likely to be deceived if you buy a car through a private party sale. Many people feel that it’s too risky.

While it’s true that a private seller could cheat you, most people are honest. It’s only natural that a seller wants to get as much money as possible and they are likely to play up the positive features of the vehicle but few would blatantly lie just to make the sale. A savvy buyer is thorough with the vehicle but doesn’t categorize the seller as a thief just because they don’t work at a dealership.

Buying a vehicle from a private party doesn’t mean you’ll get cheated but it is wise to do your due diligence when assessing the condition of the vehicle. Be thorough with your inspection and if you are unsure ask if a mechanic can take a look at it before you buy. Assess how well the vehicle was maintained by the previous driver and how it was cared for.

You Don’t Have To Pay Taxes When You Buy Private

In some states there is no sales tax assessed on vehicles purchased through a private sale. In this case you can save thousands of dollars if you bypass the dealership and buy from a private seller. However, some states have tax laws that benefit the dealerships.

In some places sales tax is assessed only on the difference between the purchase price of the new vehicle and the trade-in amount you get for your old car. Depending on the circumstances this might mean you’ll pay less taxes overall by shopping at the dealership. Always check your local laws when it comes to taxes.

You Can’t Get A Warranty For A Private Sale Vehicle

It’s true that buying a vehicle privately means the sale probably won’t be covered by the implied warranties of state law and the vehicle is likely to be sold on an “as is” basis. However this private car sale myth isn’t true because buying privately doesn’t mean that a warranty is out of the question. Even if you can’t get a warranty from the seller you do have other options.

Some manufacturer warranties are transferable. Make sure that you discuss this with the seller and review whatever warranty or service contract they have. You can also purchase an extended warranty from a third party seller that will help offset the cost of any repairs. If the seller is desperate you may be able to negotiate for a written contract which allows you more time for a thorough inspection.

Buying From A Private Party Is Complicated

If you’ve ever purchased a car at the dealership you might have been relieved that the dealer took care of all that complicated paperwork for you. People tend to believe that buying a vehicle through a private party is equally complex and that they will be stuck dealing with it all alone. This is not the case.

When you buy a vehicle from a private seller the process is a lot more simple and there is usually far less paperwork. Most of the time all that you need is a bill of sale and title transfer. Some states require an application for a new title to be issued in your name but that’s still something you can easily obtain.

Cars Sold Privately Are Lemons

Most people are reluctant to sell a lemon themselves because they don’t want to have the trouble of dealing with an irate customer. The majority of vehicles being sold privately have been maintained meticulously and their condition is so good that the seller believes they can get more for the vehicle by selling independently. This is a huge private car sale myth because it is actually the lemons that are more likely to end up in a dealer’s lot.

Most people are reluctant to sell a lemon themselves because they don’t want to have the trouble of dealing with an irate customer. The majority of vehicles being sold privately have been maintained meticulously and their condition is so good that the seller believes they can get more for the vehicle by selling independently. This is a huge private car sale myth because it is actually the lemons that are more likely to end up in a dealer’s lot.

You Can’t Get Financing For A Private Sale

A private seller will probably not be able to sell you financing like a dealership can but that doesn’t mean you can’t finance the vehicle somewhere else. You can secure your own financing through a financial institution of your choice. The best deals are often found outside of the dealership so shopping around is something you should be doing anyway.

It may be slightly more difficult to find a bank that will finance a vehicle purchased through a private sale. Some banks fear that a private seller may not describe the vehicle’s condition honestly and if the car has serious problems the bank may be stuck with a worthless vehicle. That being said there are plenty of lenders who will finance a private sale purchase.

You can save yourself a lot of trouble by checking out your financing options at myAutoloan. Enter some basic details and receive multiple quotes from lenders who are ready to finance your next vehicle purchase. There’s no obligation but if you do choose one of your offers you can have the funds in your account without ever having to leave the house.