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Financing buying used from private versus dealer?


laserlegacy

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Hi All,

 

I am looking to purchase a 05 Legacy GT Wagon 5 speed.

 

i haven't had any look finding one at a dealership, so i might have to buy one from a private party.

 

I have a few questions, I plan to take out a loan and was wondering what the difference between buying used from a dealership versus buying used from a private party. I know the obvious thing is the price, momst likely I will find a better deal from private party. But what about interest rates? Should I expect to pay a significantly higher percantage rate if I decide to buy from private party?

 

What are you experiences?

 

Thanks.

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+1 on credit unions. you will get a good rate that way too.

 

as for dealer or private party, when you buy from private party, once you buy it..it is yours pretty much no matter what. very little recourse that way. when you buy from a dealer, there is more there plus some dealers have good things for their customers when bought from them...discounts on parts or labor, loaner cars while in service, more likelyhood of being given "good will" service on your vehicle when it is out of warranty....

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Credit unions are a great way to finance cars. Some bigger banks have different programs and interest rates for purchasing from private party vs. dealership, private party purchases are viewed as a higher risk and typically carry higher interest rates in these special programs, they typically offer them via their websites. I had qualified through Wells Fargo's dealership program (works for both used and new cars), where you qualify up to a certain amount, they mail you the papers and a check for the amount you qualified for, then you go shopping at a dealership. It can be a slick program IF: the car you want is at a dealership, and if that dealership is a new car dealership (ie. Subaru, Toyota, etc). My husband purchased his truck using a program like this, it was pretty slick as you have a check in your hand when you find the car you want. I ended up purchasing through a private party, so had to requalify for traditional car financing.
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