In most cases, used cars listed by their owners sell at cheaper prices than those offered for sale by a new or used car dealership. Buying a car from a private party does require special care when examining the car's condition, and the vehicle is offered without a warranty.
Kelley Blue Book, the industry-standard publication that tracks and influences used car pricing, lists two price ranges for used cars of each specific year, make and model. One price range covers what a buyer can expect to pay from a dealership, while a lower price applies to cars sold by private parties.
Car dealerships can charge a premium for their vehicles when compared with private party sales because dealership customers expect a greater level of quality, and on late-model used cars, a warranty. Certified pre-owned used cars from dealerships come priced higher still, but they represent the best selections the dealership has taken in as trade-ins and usually carry a warranty nearly as good as that of a brand new car.