A car is a basic necessity in today’s hectic lifestyle. However, everyone may not want to buy a new car for various reasons, ranging from saving on new purchases to a lack of funds. Going in for a used car seems a better option for many due to its many advantages.
Apart from the price factor, a used car owner is not much impacted by the depreciation value for the used car. Also, many lenders in India provide a used car loan at affordable used car loan interest rates, making buying a used car an attractive option.
However, a buyer may have many lingering questions before buying a used car. The most commonly asked question is whether to purchase a used car from a certified dealership or a private seller?
Let us then explore the terms – used car dealership and private seller, and its pros and cons to help the buyer make the final decision.
Used Car Dealership
Purchasing a used car from a used car dealership is akin to buying a new car from a car brand’s retail outlet. This implies you get the requisite coverage and support provided as part of the dealership agreement. Also, many brands have opted for a used car dealership, suggesting you get the best models on display. Such dealerships also have tie-ups with lenders for financing your purchase, making it a viable option.
One can also buy a used car from a private seller, i.e., directly from its owner. This option ensures better affordability, more cost savings, and is more beneficial if you know the used car owner. However, there is less accountability than buying from a used car dealership, so that it could entail more risks.
Used Car Dealership Vs Private Seller – Which One Should You Go For?
Used Car Dealership:
- More excellent coverage and support, including a warranty as per the purchase terms.
- Allows car servicing facilities with documented service history.
- Legitimate source so greater trust and accountability.
- Offers second-hand car loan financing through tie-ups with key lenders provided buyer fulfils used car loan eligibility.
- A good credit score entails a used car loan at low used car loan interest rates, making it a budget-friendly option.
- More used car models to select from, giving buyers a wide array of choice.
- Hassle-free paperwork.
- Prices are high when compared to buying from a private seller. For all the services they provide, they charge fees included as part of the deal.
- It’s their business, so they may not inform the customer about any faulty aspects of the used car model.
- They provide a wide choice of used car models, which could tend to confuse the buyer.
- Lower prices as no hidden charges are involved.
- Cars are better maintained as the private owner has a personal interest in their maintenance.
- Checking a single used car model eliminates confusion, allowing you to make quick and straightforward judgments.
- No accountability and protection once the deal is finalised.
- No documented service, implying post-purchase car maintenance charges to be borne by the buyer.
- Paperwork to be managed by the buyer.
Before buying a used car from either a dealer or a private seller, measure the pros and cons before finalising the model. For instance, go for a private seller to trust the deal. Likewise, a used car dealership would be more feasible if you want to minimise the risk factor.
Whatever option is chosen, lenders like Tata Capital now provide used car loans with a used car loan eligibility calculator, helping the buyer customise their loan requirements. For more used car loan details, visit TATA Capital.