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I'm looking into a used Acura around <$15,000. Being someone who just started his career, I want to keep it safe and not spend so much on a car I been looking each day on craiglist and dealership sites for cars. I see that the dealerships mark up are pretty high vs a private party, obviously since it's their business. Differences of $100 a month when financing.
Cars from the dealership won't have a much of a difference right? I mean they probably inspected the car out and ripped off the guy who traded it in.
Has anyone found it risky buying off a private party? I see that you can request to get a pre purchase inspection and carfax, which I don't mind paying as long as I get a little bit of peace of mind.
Both buying from a dealership and an individual involve risk.
If you need reliable transportation- and if you have a new job you need that- and you're willing to spend that much- a basic new car is within your reach and might be a better idea.
Buying from a dealer is more convenient and has am established reputation. You are also more likely to get some sort of customer service from a dealer if something is wrong. Also, many dealers offer a 12 month warranty or more on their used cars. Furthermore, Dealers typically do a safety inspection and sometimes change out most of the fluids before putting a car up for sale. Banks typically give you a better rate and more favorable financing when you buy from a dealer than a private party as well. Oh yeah... and the dealer does all the paperwork for you on getting the car registered, etc.
With a private party you will save a of cash. However if the car has any problems, there's not much you can do about it, especially if the Bill of Sale says "AS IS". You have to go to them DMV and get all the paperwork switched over as well.
It's all about personal preference. I have purchased cars both ways. I have never purchased a private party vehicle using financing though... only have done cash deals with private parties. If you are going to buy a private party vehicle, be sure there are complete maintenance records, pull a car fax and have a trusted mechanic look it over (maybe even a dealership).
Be careful in assuming that a $tealer safety inspection means anything. I briefly worked in a dealership and the "safety" inspection was a joke, mostly just looking at the vehicle for a few seconds to see if there was anything Glaringly wrong/noticeable. I'm sure not all places are scuzzy, but the industry has that reputation for a reason.
I have financed on a private party sale, and the rate was EXACTLY the same as if we'd bought at a dealer. The only difference was that the check was made out to an individual. Not a big deal in the least. If we had a local bank and were buying locally, it would have been just as easy to meet at a bank (yours or theirs) and do an electronic transfer ~ ZERO worries about the funds for the buyer at that point and you get bank employees to verify all the paperwork for you.
As for the DMV, that's a laugh. The last.. um, 8?, times I've been for one reason or another (in 3 different states), I was in and out in under 20 minutes. It's easy stuff and saves you money. I won't LET a dealer do it, or charge me for it.
But yes, since you know what car you want, find a good Independent mechanic that knows the cars inside and out. Have them do a PPI (even if you buy from a dealer, have an independent PPI done). Knowing what you're buying is the simple key to having an excellent used-car experience. I saved about $5000 on my 2 current cars by buying private party over dealership. While I probably wouldn't notice that money being gone now (I bought them 8 and 10 years ago), it made a HUGE difference back then. Neither vehicle has had any notable problems or issues. Both are still running great today and I expect them to do so for at least another 8~10 years. You should be able to have the same experience with only a little effort on your part.
After buying my last three cars from an individual, I don't think I'll ever buy a used car from a dealer again. When I buy used, I look for cars that have all the maintenance records. Believe it or not, many people actually keep those. I won't buy any car that doesn't have maintenance records. Dealer cars are often from auctions and they have no clue if that timing belt that needed replacing 10k miles ago was actually done or not.
Another great place to find a used car is your mechanic. I have a good relationship with my mechanic. They often hear from their customers when they are going to trade a car in and can find a great car for you that you know has been well maintained.
The only real problem with buying a used car from a private party (and you give a price point of $15k) is that you may find the perfect car, but the previous owner will still owe money on it, and therefore, won't have the title to sign over to you.
In cases like that, tread carefully so that you don't get screwed. We bought our last car from a private party and they still owed about $4k on the car. We went to their bank, paid off the car loan, and then had to wait for the title to be mailed to the owner. Once they got it, they called me up, we met and they signed the title over to me. I had already gotten a copy of their drivers license, knew where they lived, etc... so I trusted that if they tried to screw me, I could find them easily.
It's almost impossible to find cars over $20k these days where the owner has the title in my experience.
After a lifetime of dumping money down the dealer rathole and always having the feeling I have been taken in some way, I will never buy a new car from a dealership again. With modern cars, if you come across one that has had the same owner for a long time, there is no signs of abuse or strange things going on with the car, you should be ok, even finding a car for less than the 15K you mentioned. Look up general repair histories on your choice car or truck first, check listings on the EB auction site and see if there is some common problem owners are describing or mentioning, also look over your used car choice for common indicators of trouble. There are many web pages to read on these signs of concern. Just remember that any car will need regular maintenance, belts, etc. over time, it is always a good idea to have any used car "freshened up" before putting it to regular use, it will be money well spent....
I think there is plenty of "dishonesty" to go around with private parties as well as dealerships.
However new car dealerships tend to junk the worst used cars and sell only the better cars. They also have a "name" to protect - it is in their interest to not totally rip every single person off. That would lead to bad news stories, people picketing out front, being reported to the state, etc. They also have laws to somewhat follow and do know about these laws. And they have to worry about selling unsafe (modified) cars and liability - they don't want that.
Then some private parties are TOTALLY dishonest! Much more so than businesses. They may have disconnected the airbags and will not tell you. Or they may have done things which make the car unsafe and will not tell you. Look at craigslist.org "For Sale". A lot of misrepresentation there. But with private parties you can also find someone who has taken good care of their car - all work done by a certified mechanic - no safety issues or modifications.
buying from dealer is more convenient? Sticking ones head into wasps nest and being mugged?
There is only one rule that WORKS:
CASH TALKS.
If you were trying to finance, I do not even want to think about it, as the rule is: you buy used, pay cash, and drive it into death. This is THE ONLY way to save money. Don't listen to me - listen to Dave Ramsey.
That being said, yes, private party is your choice and private party is Craigslist or local ebay listings, which is craigslist knockoff. Google say ebay Seattle. Exact copy, just fancier.
With that being said, the 2nd rule of buying private and used, you need to know well cars. You need to know how to scope for troubles to come.
Cheapest cars are rebuilt title ones. They are easy buy and very tough sale. Last 5 cars we bought off craigslist (we have 4 drivers and helped a friend) - 3 were rebuilt title, all ran and run like champs, and 2 were already sold - after few years of use - at same price I bought them for. But!! I am a very good tree shade mechanic and know cars.
Taking car to "a shop for inspection" is basically waste of time, as their mech does not care about you. Better bet is to have a good friend as mech and let him scope it.
Final rule is - you need to have haggling skill. And be ready to pass on a car, if price is not lowered, no matter how much you want it. I always have cash in 3 places on me - envelope, and in 2 pockets. Then I'll simply pull envelope with benjamenes out and show to seller and say - this is what I am offering, hundred dollar bills. That's lowball pot. I can add few hundreds later from a pocket, after I "am leaving". Never used 2nd pocket, cash usually breaks the deal.
Always keep in mind 2 things:
1. there will guaranteed to be a better deal available next day or 2, so don't worry about what you see now
2. no matter what you buy, you will regret it later, so, at least, do best effort to save as much on purchase, as you can.
Also, for used cars, you should stick to Japanese makes, and DO NOT buy cars made outside Japan. They are harder and harder to come by though.
IF YOU DO NOT HAVE CASH ON HAND - YOU DO NOT BUY A CAR. Period, end of sentence. Debt never served anyone good.
Not to forget. Craigslist has two rules to ti:
1. if it's too good to be true - it's a scam, don't waste your time. I spoke.
2. if you see a very good deal - buy it right away, as it will be gone in matter of hours.
Not sure about your area, here in Seattle, best time to buy used is late June. Foreign students that have their visas expired, rid of anything for cash. And they have tendency to have decent Japanese cars.
IF YOU DO NOT HAVE CASH ON HAND - YOU DO NOT BUY A CAR.
Thanks for the informative response but really? Makes sense to have no debt but I don't think everyone has that amount of cash saved up on top of savings. My current car has 200k miles and my commute is 60 miles round.
I think it only makes sense to buy something newer and have it financed? I don't think it would make sense to save up $18k in 3 years (assuming I save about $500/month)
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I been looking each day on craiglist and dealership sites for cars. I see that the dealerships mark up are pretty high vs a private party, obviously since it's their business. Differences of $100 a month when financing. 
