A pre-owned car can offer similar benefits to that of a new one when bought from a reliable source such as an authorized car dealer. And while there are a few upsides to purchasing from a private seller, such as low price, room for bargaining, and faster transaction time, they seem to fall short when compared to the downsides of the purchase. In fact, few will deny that the hazards typically outweigh those advantages. Here are few risks associated with the purchase of a pre-owned vehicle from a private seller.
Purchasing Faulty Products
Factory certified pre-owned cars have vehicle history reports. Whereas, this is not the case with the used cars bought from private sellers. As the buyer is rarely offered any proof that suggests the history of car, he has to kindly blindly on what the private seller shows. This increases the risk of purchasing a faulty car such as one which may be flood-damaged or stolen one. Other less noticeable faults could include a tampered odometer, previous accident repairs, or even a reflected full engine re-build. These factors make the car not worthy of selling (as per the Sale of Goods Act), and may also land the new owner with legal or costly complications.
Non-certified and Non-verified
Pre-owned cars purchased from private sellers are not certified. Certification implications that the car is thoroughly checked by experts for its exterior, interior, mechanical and working condition. Certification not only means checking for vehicle condition, but also fixing any problems if found. But, when bought from private sellers, it is the buyers' responsibility to get it checked by a private mechanic. Moreover, you can not be sure that the tax receipts, warranty certificates, insurance papers, and vehicle license given to you are genuine and up to date.
Used cars that are sold soon after the first purchase may have some warranty left. But unfortunately, most of the used cars are sold only after the expiration of the warranty period. Here, there is no protection for your vehicle if bought from a private seller. Also, when bought from an authorized dealer, there is often an extended warranty offered by the dealer.
No Finance Options
No finance, loan, or installation facility is provided by the private seller. The amount has to be paid in lump sum on-spot. In case you apply for any loan or finance outside, there are high chances of your proposal being returned due to the lack of certification of the pre-owned vehicle. If you purchase a vehicle from a reputable dealer, he will not only arrange finance options for you, but also make sure that your application is approved in the least possible time.
Once the sale is complete, a private seller holds zero responsibility for defects or problems in the vehicle. This holds true no matter how much time has passed since the transaction. Taking that into consideration, on top of the lump sum payment, lack of warranty, and no certification, it's important to understand that you will have very little chance of winning legal action against the seller should problems occur. The mechanical breakdowns or poor engine condition of the vehicle are the responsibility of new owner.
Buying a used car from a private seller is, in reality, not as inexpensive as it sounds. The buyer, if ignorant to the vehicle's history, may be burdened with a heap of hidden costs. In most of the cases, the private seller is focused only on selling off his used vehicle and hence, may sell you at lower price. He will also use sales pressure techniques to push the sales, leading you to buy the vehicle in a hurry without any background information.