Shopping for a used car is an important financial decision: If you do your research and find one that will last for a while, you can budget for regular maintenance with relative confidence that you’ll be on the road for years to come. But if you take a lemon off the lot? You might end up having to be a whole new car in no time at all.
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Though car dealerships are often seen as safe places for relatively savvy car buyers who know how to ask the right questions and look for the right features to get the best deal, there are reasons why even the experts don’t look to dealerships for their models.
GOBankingRates talked to Paul Knoll, marketing director of American Muscle, and Mark Beneke, co-owner of Westland Auto Sales, to learn about the circumstances where you might not go to a dealership for a used car – and where you can go instead.
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Avoiding the Hard Sell
Setting foot in any car dealership means you’ll soon attract the attention of staff – a lot of attention. Sometimes, too much attention. It’s easy to feel overwhelmed by the options, and you’re often in the position of needing to trust sales teams who could be incentivized to press options that benefit their bottom line and not your best interest.
“If you’re considering a used car, you might want to skip the dealership to avoid higher prices, high-pressure sales tactics, and limited choices,” said Knoll. “Dealers often push unnecessary upsells and warranties, and the car’s history might not always be clear.”
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Searching for Better Prices
Car dealerships are like any business, they exist to make money. Not only do they want to get cars off the lot, but they’re also invested in upselling features and warranties that might not be necessary for you.
“The biggest reason to avoid a dealership comes down to them valuing price over anything else,” said Beneke. “Dealerships are a business and therefore need to pay for overhead costs and make a profit to continue operating, which means a higher price for buyers.”
Investigating Other Options
One of the biggest perks of purchasing a used car from a dealership is they operate with many regulations in place and handle most of the process for you.
However, according to Beneke, if you’re willing to put in the legwork to find your new set of wheels – which involves spending the time and money to pull history reports; test driving a car; paying for a third-party mechanic to thoroughly inspect the car and share a full report; and searching for any backed fees, emissions issues, and potential liens – you can find less expensive options elsewhere.
Online marketplaces: Hunting for bargains on outlets like Facebook marketplace, OfferUp, and Craigslist allows you to negotiate directly with people selling their cars directly, helping to make prices more competitive.
Car auctions: Beneke said that buying from most car auctions requires a dealer license, there are also many auctions available to the general public. Government auctions can also be a great place to find service and abandoned evidence vehicles at an affordable price. He added that the strict maintenance protocols associated with service vehicles means that they are often in great condition.
Tow Companies: You might be surprised to find that many vehicles are abandoned at tow company lots. To recoup their losses, the companies place liens on them and sell them to the public. Beneke said that many of these cars come in high quality condition and at low prices.
Mechanic Shops: Just like tow companies, mechanic shops are often the sites of abandoned vehicles. These shops place liens on the cars and sell them to earn back the money they spent repairing them. Beneke said that this option may be your “safer bet, as you can speak directly with the mechanic and get a good idea of the condition of the vehicle, as well as the repair that was done on it.”
While sharing that his own business has obtained cars for sale through alternative outlets, Beneke also advised the average car buyer to take their time and be careful about their purchase.
“We have bought many vehicles this way over the years and found some great options. However, I advise anyone looking into these routes to slow everything down and make sure they proceed with caution on any vehicle they are seriously considering,” he said.
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This article originally appeared on GOBankingRates.com: I’m a Car Expert: Here are 3 Reasons I’d Never Buy a Used Car From a Dealership
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