Suppose you are looking for a used car. Then you have two choices: buy from a private person or buy from a car company. What is best now? Both options can be a great solution.
In this article, I will tell you the advantages and disadvantages of both options, so that you can make a decision yourself. Of course, you can also contact us for advice. https://leaseplan.co.nz/
Below you will find a brief overview of the characteristics of both options. I will elaborate on this in the rest of the article. Leasing companies are also covered!
Buy a car from a private individual
In general, used cars are cheaper at private homes than in car companies. This is because car companies have to deal with a purchase and sale price.
The difference between them is what the car company earns from the car. A car company cannot, of course, sit below the purchase price, because then they will suffer a loss.
A private individual does not have this. That is why you often have more room for negotiations with a private individual. In terms of price, it is therefore in most cases cheaper to buy from a private individual.
A disadvantage is that a private individual is often less aware of the technical condition of the car.
But of course, there are also a few disadvantages to buying from a private individual. Suppose that something else has to be done about the car. The chance is small that you will receive the costs of this as a gift.
Another disadvantage is that you get no warranty on the car with a private individual.
Do you currently have a car that you need to get rid of? Trade-in with a private individual becomes difficult. This is, of course, possible at a car dealership. However, keep the following in mind: If you sell a car privately, you almost always get more money for it.
On the other hand, it is so easy when you get rid of your old car right away. This way you prevent that you temporarily have two cars at the door and therefore pay double road tax and insurance. Another option is to sell it by auction.
Buy a car at a car dealership
As you read above, there is less room for negotiations at a car company. After all, they have limited room for maneuver. And that room for maneuver has only narrowed in recent years.
The car industry has of course fallen considerably in recent years. Prices have fallen to still sell cars. The larger inefficient cars, in particular, have fallen in popularity. And then there is the increased popularity of the various occasions sites.
Many visitors (and therefore potential customers) to these occasions sites sort the offer by price. The higher the price, the less often you are seen. Too low a price is also not ideal, because that is suspicious.
The fact is that the car company put their cars on the internet at a competitive price. The sharper the price, the less room for negotiation.
It also happens that the price is completely fixed. It is then a so-called take-away price or online price. This is the price you pay. It is possible that certain repairs are still being carried out within the price.
Buy a car from a leasing company
Negotiations are usually not possible at lease companies either. The prices are competitive and the cars are always well maintained. The drivers of lease cars do not pay for the maintenance themselves.
So they don’t benefit from having something repaired or not repaired. The maintenance booklets are also always included.
The cars have always had only one owner, namely the lease driver. This is also a positive sign. In short: leasing companies generally offer very neat used cars for a good price.
Another disadvantage of companies: delivery costs. At most car companies, these are costs that still come at the asking price. Currently, there is a lot to do about this expense. It is often completely unclear what is being done for the extra 300 to 700 euros.
It is a simple way for many companies to earn extra money. Often it means something like complete cleaning of the car, topping up liquids, new mat set, and a new MOT.
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However, that does not cost hundreds of euros! So always negotiate about this and ask the seller what exactly you get for this money.
At a car dealership, it is easier to negotiate additional repairs or maintenance. After all, the company can do this in its own workshop. A private individual must put more effort into this and pays the full blow.
Our own experience after more than 2000 purchase inspections
Our car coaches inspect cars every day. Both with individuals and companies. We sometimes hear that it is more reliable to buy a car at a car dealership. However, this varies enormously per car company. You have good and bad.
This is how we come across real gems at private individuals and huge barrels at brand dealers. In total, we left more than 200 cars. These were in too bad shape and the costs for recovery too high.
We document all the experiences we have with the car companies that we visit. There are therefore a number of companies that we do not visit. This can have two reasons:
We have been there before and every time the car and many times worse than was said
We are not welcome at the car company. You have to wonder why that is so….
Conclusion: where do you buy the best occasion?
We have now mainly talked about the differences between a private person and a car company. But where do you buy the best occasion? Our experience shows that we cannot provide a clear answer to this.
In general, cars are cleaner at brand dealers. However, there too we sometimes find the largest wrecks. And with dealers where you don’t expect it, we find very nice cars.