Car Comment: Buying a Used Car Elsewhere
Question: I’m looking to buy. Any suggestion on where to purchase? What auction(s) do you use? Is it better to buy it from a dealer (probably would pay more) vs individual? I don’t have experience at car auctions. Thanks
Queen of the Road: Have you tried looking through craigslist, your local classifieds or autotrader? Those are good resources to use for getting an idea of what’s in your local market. Then come ask your friendly AutoBragBlog about how much the car is worth in the wholesale market. This gives you the “floor price” since the wholesale is what most dealerships pay to obtain the used vehicle. The average margin on used cars in the U.S. is about 10%, so if the wholesale is $15,000, expect the dealer to ask for $16,500. Your goal… as well as ours is to get you in that car for as close to $15,000 as possible. Many private parties will sell their vehicles below wholesale so there are deals to be had. Make sure to inspect the car with a certified mechanic.
The answer to ‘who it’s better to buy from’: Private Party from a price standpoint. However, it’s only “better” to buy at the dealer if you need to trade in your used car and/or if you are upside down on your loan. Private parties don’t take trade ins. Also, if you’re paying cash, private is the way to go. BUT remember to have the vehicle inspected and use CarFax or equivalent to check for the history of the car.
