Once you decide it’s time to update your ride in the driveway, you must decide how to search for your next automobile. From giant franchise dealerships to buy here pay here (BHPH) lots, there are tons of options. Of course, while each option has its advantages, there are also some drawbacks to consider when making your next choice.
Dealer
Dealerships are the only way to get brand new, name-brand vehicles. Since the laws in the U.S. don’t allow for auto manufacturers to sell directly to consumers, you have to go through a dealer. This is also the only way you can pre-order or reserve a new model.
The downside with dealerships is that customers have to work with sales teams. While many dealerships offer personalized and honest service, some do not. Plus, not everyone wants to haggle with a salesman.
Used Car Lot
Used car lots come in all shapes and sizes. Some are part of larger new car dealers, while others deal only with used cars. You’re likely to save money with a pre-owned car, and these dealerships tend to have tons of different brands, models, and years.
Just like a new car dealer, a used car lot requires interacting with a sales team. Since used cars are unique and don’t have an MSRP, it can be hard to know how much a pre-owned car should cost. You also run the risk that there may be issues with the car that won’t show up until you’ve owned it for a little while.
Buy Here Pay Here (BHPH) Lots
Buy here pay here dealers often have a bad reputation, but they actually offer competitive options. A BHPH organization is one that doesn’t necessarily use an outside lender to finance your auto loan. Instead, you finance directly from the dealer. If you have bad credit, Buy here pay here dealers can offer you flexible terms.
On the negative side, there are a good number of non-reputable BHPH dealers who ruin it for the good ones out there. The cars are still pre-owned, so you want to make sure you do your homework and get a good deal.
Private Sales
Sometimes you know a guy who has a friend selling a car, and it’s just easier to buy it directly from them. Private sales refer to buying a car from another person without the involvement of a dealership. This can be a great deal for both the buyer and seller since they don’t have to deal with fees associated with there being a middleman.
Private sales aren’t perfect. Sellers often want more from the car than it’s actually worth. You also don’t have many recourse options if something is wrong with the car. It also takes a good deal of patience to search through cars for sale, set up viewings, deal with sellers, and so on.
Auctions
Some drivers have had tremendous luck finding a great deal on a used car at an auction. A car goes up for auction, and the highest bigger gets the deal. Auto dealers often attend various auctions to help build up their inventories.
Of course, you have to be careful with auctions. There’s no way to know the history or care of the car, which means it could cost much more in the long run. Plus, the number of people looking for a good deal can drive up prices.
There are pros and cons of each car-buying method, so make sure you know what you’re getting into before making your purchase. If you play your cards right, you can drive home in an incredible vehicle at an affordable price.
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