Shopping for a new (or new to you) car can be somewhat overwhelming. There is what could be viewed as a minefield of options. It’s up to you to make the right choice that results in a vehicle you can entrust with your life, the lives of your family, and your transport needs for many years to come – at a price you can afford.
One of the biggest decisions in this journey is whether you should buy from a dealership or private seller. While private sales might seem cheaper on the surface, the long-term value and security you get from a dealership can make all the difference. This is especially true in South Africa’s complex secondhand vehicle market.
Here is a breakdown of what you can expect from each route, so you can make the most informed decision for your next car purchase.
The Cost vs Value
Let’s start with what everyone is thinking: Price. The rumours on this front tend to be, private sellers often list their cars for less than dealerships do. Generally, the reason this is the case is because private sellers are not running a business, they don’t offer warranties, and they don’t need to include any after-sales services.
But there is the catch to these cheaper price tags. You see, cheaper doesn’t always mean better value. Private sellers cannot offer you a vehicle that has undergone a multi-point check to verify its condition or provide you with service history verification. Yes, you might be able to get a roadworthy certificate, but it’s less likely for your purchase to include a warranty or service plan.
These add layers of protection are what will typically be included when you make your purchase through an accredited, trusted dealership. This way, you can be sure of making a sound choice – which is especially beneficial if you’re not a car expert.
The Trust Factor
Speaking of trust, it’s worth pointing out that when you buy from a private seller, you are largely on your own. There is no cooling-off period, no formal comeback if something goes wrong, and little to no legal recourse unless you can prove fraud.
Dealerships, especially those from within the or with manufacturer ties, are required to meet strict industry standards.
This means that you will be protected under the Consumer Protection Act, have some form of recourse if the car has hidden issues, and benefit from the dealership’s incentive to ensure their reputation for fairness is protected.
The bottom line? If trust is important to you, the right dealership offers a safer environment.
Financing Options
For the most part, dealerships offer on-site financing or partnerships with banks, which can streamline the process. However, if you’re buying privately, you will need to arrange your own financing. This isn’t impossible, but it does involve more paperwork and risk. Not to mention the fact that some banks tend to be more cautious when financing private sales. If this is the case, then you may be required to get your hands on additional inspections and paperwork before approving the loan.
Trade-Ins And Extras
Let’s say that you need to get rid of your current car and time is not on your side. In this scenario, most dealerships will accept trade-ins, giving you a discount on your new vehicle and saving you the hassle of selling privately.
As an added incentive, consider how dealerships often offer add-ons like:
- Licensing and registration support
- Extended warranties
- Vehicle service plans
- Insurance quotes
On the other hand, private sellers don’t offer much by way of benefits. It’s a DIY affair, start to finish.
After-Sales Support
Once a private sale is done, the relationship ends. With a dealership, though, especially if you’re dealing with a reputable one, you’re more likely to have access to after-sales care.
This could come in the form of servicing, queries, or concerns about the car’s performance and this kind of support can be a game-changer if unexpected issues crop up after you drive off.
As you well know, buying a car is a big financial decision, and the route you take matters. So, while private sellers may seem more affordable upfront, it’s clear that dealerships have the power to offer more protection, better financing options, and long-term value. With that in mind, if peace of mind, accountability, and professional service matter to you, buying through a dealership – particularly one that has partnered with the AA – is the smarter choice.
If you are eager to find a dealership who offers vehicles that have undergone rigorous inspections and come with fully investigated service histories. This should help you find a dealership that has partnered with the AA Certification Programme.