Why Are Used Vehicles From Dealerships Priced Higher Than Private Sales?
If you're in the market for a used vehicle, you may have been wondering how much it will cost to buy one from a dealership. You've likely seen prices at private sales cheaper than what you find at dealerships. There are many factors that help explain this discrepancy, and this article will look at them.
Dealerships price their vehicles more because they do an additional inspection of the car. The extra money is used to pay for a full checkup by a trained professional, who takes time out of his day to inspect and repair any problems with the car. While you pay more, you also get a car which is well maintained and comes with no problems as opposed to one that's just been sitting in a garage with no one to look after it.
One of the reasons dealerships price their vehicles more is because they provide guarantees when you buy from them. This means if something were to happen to your car after purchasing it, they would be responsible for repairing it and getting it back on the road so you could use it.
This is a good way to protect their business, which is often quite large and depends largely on customer relations. If you notice a problem with your car even after you've purchased it, you can always go back to the dealership.
Peace of Mind
Another reason dealerships price their vehicles more is that you get peace of mind knowing that the vehicle you purchased is of good quality. If your vehicle breaks down, it can be very costly to fix it.
Dealerships also offer more in terms of accessories and other benefits to your vehicle. This is something that private sellers do not offer. With a dealership, you can expect an extended warranty or a free car cover thrown in for good measure.
The reason you'll pay more money for a car from a dealership is because the dealer has invested more in its fleet of cars than an individual would. This means that when something goes wrong with one of those cars, it's not likely that someone else will buy it from them and fix it up - so most likely, you're going to have to get it fixed or replaced by your dealership instead.
In general, dealerships demand a slightly higher price for pre-owned vehicles over private sellers because the buyer is going to be receiving various benefits with their purchase. If you are willing to do your homework and shop around, you can find good deals with good dealerships, as long as you're willing to pay a higher price.