Are Used Cars Sold by Owner Cheaper?

Are Used Cars Sold by Owner Cheaper?

Are Used Cars Sold by Owner Cheaper?

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.