Where You Should Go Buying Your First Car: Private Sellers vs Car Lots vs Dealerships

Buying a new or used car is not an easy task, there is a lot of homework involved. Apart from tips on the internet, including an experienced friend in your venture can be of great help. You need to take all necessary precautions; car purchase is a formidable investment and people can be easily beguiled.

The first step is to choose the buying place? A car lot, a dealership or a private seller? To decide, you need to know how they work, their advantages and disadvantages. We are going to give you a heads up, so stay focused as we go into details:

Buying Your First Car

Independent Car Lots

Car lots are open avenues where a wide variety of second-hand cars are lined-up for bidding. The people running such places are sharp businessmen, skilled to make you bananas by their verbosity. They have good knowledge of cars and they can sell you anything. Remember, car lots do not get any official representation from the automaker.


  • Affordable rates that can be further negotiated
  • Myriad cars to select from, including classics
  • Not all, but some car dealers offer you financing options as well


  • The dealer is not bound by any regulations, so expect no guarantees
  • Vehicles might be subject to unmentioned faults
  • Repairing services are limited to their local garages
  • Very high interest rates

First Car

Car Dealerships and Franchises

Car dealerships are official franchises of brands they represent. The dealers follow certain guiding principles and can be accounted for their sales practices. They are safer to do business with, compared to your other options.


  • New cars are available with claimable warranty
  • Reliable and trustworthy environment
  • All deals are backed by legal documentation
  • Reasonable financing options with subsidized rates
  • Elaborate financing options


  • Fewer cars to choose from
  • No old or classic models are available
  • The prices are high and inflexible

First Car

 Private Sellers

Private sellers are individuals who want to sell their car. This brings up anonymous car owners, so be very wise and cautious. Never take cash to such people and always choose a secure premises to hold talks with them.


  • Urgent sellers set an incredibly low price
  • Accurate ownership history of the car
  • Wide open window for price negotiations


  • Trust issues are involved
  • More chances of fraud
  • Cars have usually no or expired warranties
  • You can get traded for a faulty vehicle
  • No financing options are available

Buying First Car


Patience is the key no matter which option you choose to buy your car. Don’t settle down too easily on a single deal, visit multiple places so you can have good idea of the market. Get assistance from a friend if possible, but witness every step yourself. As to our recommendations, car lots suit you if you seek savings, and dealerships are the best choice if you like to remain on the safe side, while going to private sellers is risky and beneficial at the same time. Rest is upon your discretion. Hopefully, our tips will guide you through the way.