Car Dealership or Direct Transaction? Which is a Better Option? - Fabcar

Car Dealership or Direct Transaction? Which is a Better Option?

Car Dealership Perth

Car Dealership or Direct Transaction? Which is a Better Option?

If you want to buy a car but you are on a tight budget, you might want to opt for a used vehicle. There are two sources you can turn to. You can either go to a car dealership or search online and look for private sellers.

While there are more advantages to choosing a car dealership, we will not discount the fact that there are still benefits to opting for a private seller. However, you are most likely to experience more problems with the latter. For instance, you won’t have a clear and definitive evidence of the history of the car you’re buying.

On the other hand, if you are selling through an ad listing online, you might encounter security issues during inspection or turn-over. In recent news, a woman in Parmelia was assaulted and had her car stolen when she met with buyers for a test drive. This and other issues arise when you avoid going through a car dealership.  

Inspections and Warranties

One of the advantages in purchasing a car through a dealership is the possibility of a warranty. Car dealerships often offer warranties with cars that meet certain mileage and age requirements. For a certain price, you can even extend the warranty.

Even with a warranty, used cars from dealerships still go through inspections. When you deal with a private seller, you won’t have the same detailed inspection as car dealerships offer. These businesses ensure that their customer gets a car in good condition. In some cases, if the car does not pass inspections, it would be sent to an auction.


It is important to note that financing a used car is not as easy as financing a new vehicle. There are banks that won’t finance cars past a certain mileage or age limit. Aside from that, the interest rates tend to be higher.

Moreover, some banks do not finance cars through private sellers. The reason behind this is the possibility that the individual might not accurately describe the condition of the car, especially when the seller does not have their reputation on the line. If the buyer learns that they’ve financed a car with serious issues, they might walk away from the loan. This leaves the bank with a worthless vehicle. There are banks that are concerned that private sellers may be fraud. So, they only deal with reputable dealers.


Taxes can either benefit car dealerships or private sellers, depending on the location. There are areas where the sales tax is assessed depending on the difference between the purchase price of a new car and your trade-in. In this case, you can save thousands of dollars. When it comes to taxes, it is always advisable to review your local laws.


The great thing about transacting through a car dealership is the fact that they have a reputation to uphold. If they sell a car with flaws without clearly disclosing the issues, they might end up with an angry buyer who can damage their reputation. On the other hand, with a private seller, they would not necessarily have to care about what the buyer thinks after the sale, especially when they are not actively engaged in the car selling business. With their reputation at stake, car dealerships typically go through lengths just to resolve issues after the sale.


If you are planning to sell your car to a direct buyer, you have to know that there would be tonnes of paperwork you would have to deal with. This includes loan application for the buyer, purchase agreement and ownership transfer, among others. On the other hand, when you consign your car, you can relax and let the agent do all the tedious paperwork for you.

They will handle the whole process and use their expertise to sell your car at a good price. Your car dealership will be the one to take the photos, answer enquiries and set up meetings with potential buyers. Your car dealership will be the one to ensure that you would have a streamlined sale process.

Selling Price

It is true that you can get a car at a lower price when you deal with a private seller. On the other hand, when you sell your car through consignment, you can do so at your preferred price. The car dealership will eliminate low-ball offers and source from the highest resale value possible and even close to the price offered in the market. Aside from that, your car dealership will take care of some minor touch-ups to ensure that your car will be attractive among buyers. In this way, the sale process will be smoother and easier.

Whether you are buying or selling a car, there are more advantages to choosing a car dealership. If you want to know more about consigning a vehicle, contact Fabcar today. We will be glad to answer your enquiries and help you find a good buyer for your car.


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