Saving & Spending Home & Auto

9 Reasons to Never Buy a Used Car From a Dealership

Find out why you might want to look at other options.

By Jenny Cohen

Edited by Chris Kissell

Updated Dec. 17, 2024

Many people go to a dealership when shopping for a used car. But dealerships are not your only option.

In fact, there are some good reasons to buy a used car on the private market or from a different source than a used car dealership.

Here are some reasons you might want to skip the dealership if you’re in the market to buy a used car and want to keep more cash in your wallet.

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You can steer clear of a 'hard sell'

You will get a lot of attention when you walk into a car dealership, and that can lead to being overwhelmed by a salesperson trying to get you to take home a car.

But you can avoid the daunting hard sell from a dealership if you look at other ways to buy a used vehicle.

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You will likely get a better price from a private seller

Car dealers have extra costs that they have to cover. These include rent for the dealership, salaries, and other expenses associated with running a business.

Those costs might be passed on to the buyer. You can avoid such extra costs by purchasing from a private seller and getting a lower price.

You can avoid hidden fees

Surprise fees from dealers can include delivery fees, dealer prep fees, and even fees to cover the costs of processing documents.

Buy from a private seller, and you can skip these junk fees altogether.

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You won't feel pressured to buy an extended warranty

Dealers often try to talk buyers into purchasing all kinds of additional add-ons, such as an extended warranty.

Extended warranties may not cover everything you expected. Drivers often find out where the gaps are when they need the coverage due to a repair or emergency fix.

You won’t pay high financing costs

Dealers make a profit from selling you a car, but they can also get extra money if you agree to finance your vehicle through them.

You may be able to get better financial terms on a car loan from a bank or financial institution.

You can avoid a low trade-in offer

If you have a car that you want to trade in, it’s a good idea to find out exactly how much a dealership will pay for the vehicle before you go through with the sale.

You may be able to get paid more by selling your car as a private seller.

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You can avoid the dealer incentive to upsell

It’s not unusual for buyers to go into a car dealership with a plan to buy a particular vehicle and come out with something more expensive.

Salespeople earn commissions on sales, so they have an incentive to put you in something that may be out of your price range.

By contrast, a private seller is only selling one vehicle and doesn’t need to sell you something else in the hope of getting more cash.

Private sellers just want to sell

There are a variety of reasons why a private seller might try to get rid of a vehicle. Perhaps they need a bigger vehicle as their family grows, or want to downsize to one car after the kids leave home.

Others want to sell their current vehicle simply so they can get a new one themselves.

Whatever the reason, there’s no extra incentive for them to upsell you, hide fees in the cost, or do anything else that may be common practice for used car dealers.

A new car may be a better option

Check the price of a used car and compare it to the cost of a new car. Used cars might have higher repair and maintenance costs due to the wear and tear put on them by previous drivers.

That can add extra costs that wash out the savings you might otherwise get by picking up a used car instead of a new vehicle.

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Bottom line

Buying a new car can be a frustrating process. However, things might go more smoothly if you stay away from the dealership.

If you are looking to cut your car ownership costs, try to shop around and compare quotes so you can save money on car insurance.

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