5 Ways To Buy a Car Without Using a Dealer
Shopping for a car at a dealership can feel overwhelming and exhausting. The haggling, the upselling and the pressure to buy can make the experience far from enjoyable.
Learn More: Car Experts Say Don’t Buy These 7 SUVs That Cost the Most Money Over Time
Find Out: 4 Genius Things All Wealthy People Do With Their Money
If you’re looking to avoid this hassle and still find a reliable vehicle, exploring alternative ways to buy a car might be your best bet.
Here are five options for finding your next car without using a dealer.
Online Car Marketplaces
Emil Sultanov, a car-buying expert with LongTermCar, said that websites like Carvana, Vroom and Shift allow you to browse, purchase and have a car delivered to your doorstep.
“Traditional car listing sites like Autotrader, Cars.com and Craigslist also offer private seller listings,” he added.
Sultanov noted that online marketplaces often provide competitive pricing, and some even offer financing options.
“It’s wise to compare prices across multiple sites and consider getting preapproved for a loan to secure better rates,” he explained.
According to Sultanov, these are the pros and cons of buying a car through an online marketplace.
Pros
Convenience of shopping from home
Wide selection of vehicles
Some platforms offer return policies, warranties and inspections.
Cons
Potential for hidden fees
Limited ability to physically inspect the car before purchase
Risk of buying from an untrustworthy private seller on less regulated platforms
Discover More: 5 Car Brands With the Most Reliable Engines
Private Party Sales
Private party sales involve buying directly from individual sellers through classified ads, social media marketplaces or word-of-mouth, Sultanov said.
He explained that going this route can offer a financial advantage as private sellers might offer lower prices compared to dealerships. However, he said it’s essential to have the car inspected by a mechanic and also verify the vehicle’s history via services like Carfax or AutoCheck.
According to Sultanov, here are the pros and cons of buying from a private seller.
Pros
Potentially lower prices
Room for negotiation
Cons
No warranties or guarantees
Higher risk of purchasing a car with undisclosed issues
More paperwork and logistical arrangements
Car Auctions
Car auctions involve participating in local or online car auctions, such as those by Copart, Manheim or government auctions, Sultanov said.
“Auctions can offer significant bargains, but it’s important to set a budget and stick to it,” he suggested. “Thorough research on the auction process and the specific cars you’re interested in is crucial to avoid overbidding.”
Here are Sultanov’s pros and cons when it comes to buying a car at a car auction.
Pros
Potential for great deals
Wide variety of vehicles
Cons
Vehicles are often sold “as-is” with no guarantees
Limited opportunity for pre-purchase inspections
Can be competitive and fast-paced, requiring quick decisions
Lease Takeovers
Sultanov said that websites like Swapalease and LeaseTrader facilitate the transfer of lease agreements from current lessees to new buyers.
“This option can be financially wise if you want a short-term commitment and lower monthly payments,” he said. “Ensure you understand the lease terms and any transfer fees involved.”
Here are the advantages and disadvantages of lease takeovers, according to Sultanov.
Pros
Lower upfront costs and monthly payments
Access to newer vehicles with the latest features
Cons
Limited term before lease ends
Potential fees for excess mileage or wear and tear at the lease’s end
Possible lease agreement restrictions on modifications and usage
Car Subscription Services
“Services like Fair, Clutch and also Care by Volvo offer car subscriptions that include insurance, maintenance and the ability to swap vehicles,” Sultanov said.
He explained that subscriptions can be cost-effective for those who prefer flexibility and don’t want the long-term commitment of owning a car. However, he added that this option might be more expensive in the long run compared to traditional ownership or leasing.
Here are the pros and cons involved with car subscription services, according to Sultanov.
Pros
Flexibility to switch cars frequently
All-inclusive pricing covers insurance and maintenance.
Cons
Higher monthly costs compared to traditional financing or leasing
Limited vehicle selection
Subscription terms and mileage limits may apply.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 5 Ways To Buy a Car Without Using a Dealer
