Reader Question: Dealer or Private Seller?

Here’s the latest reader question, along with my reply!

Clement asks: I recently tried buying a used Lexus GS 2000 from a private dealer I found through a trusted libertarian source. The car ran smoothly, and I was ready to finalize the deal, but unfortunately, it fell through because the seller couldn’t get the title. Now, I’m reconsidering my approach and wondering if I should go through a proper car lot instead.

My budget is around $3,000 to $3,200, so I know my options are somewhat limited, but I’m hoping to find something reliable without dealing with too much government red tape. In your experience, where would you recommend looking for a used car in this price range? Should I stick to private sellers, or would a small independent lot be a better bet?

Thanks in advance for any advice you can share. I really appreciate your time!

My reply: You will generally pay significantly more for a car at a dealer – and this isn’t unreasonable. The dealer incurs costs preparing the car for sale, which in many states includes mandatory repairs needed for the vehicle to pass safety and emissions testing, which is a legal requirement (for dealers) before they may sell a vehicle. Naturally, these costs will be folded into the price of the vehicle. A dealer must also pay staff and related costs – and that further increases your costs.

On the upside, the car you buy from a dealer will be inspected and come with 30 day tags. It may even come with a 30 day warranty of some kind. A private seller is under no legal obligation to get the vehicle into good enough condition to pass state safety/emissions and the law is generally understood that the vehicle is sold “as is,” so if it breaks down as soon as you leave the seller’s driveway, it’s pretty much your problem now. Also, you will have to deal with getting tags and so on yourself.

On the other hand, you are likely to pay much less to a private seller – especially if you can produce the cash to dangle in front of them (be careful in re this; agree to meet in a public place and take a friend with you). You can haggle over such things as worn out tires and cracked windshields and then deal with such issues yourself.

In either case, though, it is important to either be able to competently evaluate the vehicle’s condition yourself prior to sale or have it evaluated by someone who is. I consider this a must prior to the purchase of any used vehicle, whether bought from a dealer or a private seller.

As regards your specific situation – and budget: I recommend steering clear of any used luxury-brand vehicle, especially on n the $3,000 or so price range. The odds you will be spending at least that much on repairs within the first year of ownership are high. I recommend looking for a vehicle that was considered nothing special when it was new or even undesirable on account of its styling (not its mechanicals) when it was new. A Buick Rendezvous is a fine example. This is the Buick version of the Pontiac Aztek. Both aren’t the best-looking vehicles on the road, but both have GM’s very durable V6 engine paired with a four speed automatic and you could probably find one in great mechanical shape within your price range.

You might also consider saving up another $2k or so to buy a newer/more recent vintage Toyota Corolla. These are superb cars that last 20-plus years if taken decent care of.

You might also get lucky and find the proverbial “little old lady” car – something like an early-mid 2000s Ford Crown Vic (which is a nice big sedan) with low miles and in great shape.

Those are the kinds of vehicles I’d be keeping a look out for!

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