Under The Hood

The Benefits of Buying Used Cars from Private Sellers

Dealers sell vehicles every single day. And they know you want a good, cheap car! They know every type of customer, all your objections, all the tactics to please and pressure you and finally to sell you something less than you deserve!

On the other hand, a private seller is an individual just like you, looking to sell his or her vehicle with the least bit of hassle and thankfully, they’re not wired to make a profit off you. Hence, there are several advantages in choosing a private seller over a dealership when buying your used car. 


1. Lower Prices

Cars sold by private sellers tend to have the lowest prices compared to a dealership. By buying a pre-owned car from a private seller, you’re eliminating the middleman, which means you get some serious savings on your car. Dealers have to cover their overhead – operational costs, insurance, salaries, utilities, cheesy advertising – all cost money. The result: the car is priced significantly higher than its actual value, and you end paying their costs.

Kelly Blue Book is a reliable source that most private sellers use for vehicle valuation. KBB provides a fair estimate on how much a car is worth, which is the baseline for the asking price. When looking at KBB be mindful of Retail (dealer prices) vs. private party prices. Leveraging pricing information in advance, makes you an informed buyer.


2. Lower Taxes

In most cities and states, there is a significant tax incentive to buying your car from a private seller rather than a dealerships. Although it varies from state to state, the tax rate is fairly low for private party sales, compared to sales tax implications at a dealership.

Example: Take a look at the 2012 Honda Accord listed in Swap Marketplace for $10,999. At this price point, the private party use tax is only $90, whereas, you may end up paying $989 in sales tax if you purchased the same vehicle from a dealer (assuming you reside in the City of Chicago).



3. Greater Bargaining power

A deal between two individuals means that the buyer and seller can mutually agree (or disagree) on a price and there's always more wiggle room. Private party sales have more flexibility on pricing since dealers’ usually try to cover their fixed costs. Often by demonstrating that you are a serious buyer, you can make negotiations easier, reach an agreement on favorable terms and get the transaction completed quickly.


4. No Hassle. More Control.

One of the key benefits of buying from a private seller is the comfort and control you have over the deal – from scheduling a meetup with the sellers to asking questions and negotiating the price. It’s the opposite when you’re at a dealership, which could be a stressful experience sometimes. You certainly don’t have to worry about the “hard sell” or typical used car salesmen tactics.



Buying a pre-owned car privately is the best way to maximize your value. The experience is fluid, offering the flexibility and convenience you deserve. 

Swap Motors connects private sellers with buyers in a trusted marketplace. The vehicles are evaluated, sellers are verified – so you know what you’re buying and whom you’re buying it from. Our savings analysis tool shows you how much you can save by buying private, compared to a dealership. On an average, you would end up paying 20-25% less than dealer retail. 


Ready to find your next car? Visit Swap Marketplace.