There are many different things buyers might want to consider when looking at cheap cars. Some people might think of “cheap cars” as the hunks of junk of the automotive world, but that is not really the case, because a good cheap used car can often be just as good as a brand new car.
An inexpensive used car from a private owner will obviously not have “that new car smell.” A dealership-prepped used car might smell a bit better, but buying a used car from a dealer or broker will definitely cost you more. According to most estimates, dealers usually charge around $2,000 more than private sellers would for the same vehicle. Dealers must cover sales commissions, advertising costs, rent and other overhead items. Those expenses are included in the price of all dealership-sold cars, new and used, and are paid for by customers like you and me.
Buying from a private owner will definitely cost less overall, but a used car from a dealership has its benefits too, as you are dealing with professional people who can provide you with other advantages, like free accessories, insurance discounts, after sale services, extended warranties and other guarantees.
Those types of dealership benefits are obviously not available if you buy your car from a private owner, but there can be hidden treasures associated with buying your car from a private seller. For example, accessory features and custom items like high-end stereos, navigation systems, tinted windows, etc., can often be found in installed in pre-owned vehicles because most private owners don’t take the time to remove those items from their cars. It is not unusual to find a thousand dollars worth of add-on accessories, both dealer and owner installed items, already installed in a used vehicle.
Another advantage of buying a cheap car outright from a private owner instead of financing one through a dealership is that you will not have to pay for comprehensive insurance coverage, as minimum liability coverage will suffice in most cases. Of course, if the car is for your teenager, you may want to have full coverage just in case!
