Dealer vs Private Seller – Which Is Better for buying cars in Australia?

What’s the Difference?

A Dealer

A car dealer is a business that sells cars. They must follow rules and laws to protect the buyer. Dealers often give warranties and might offer car loans.

A Private Seller

A private seller is just a person selling their own car. They don’t run a car business. You might find these cars on websites like Gumtree or Facebook Marketplace.

Pros of Buying from a Dealer

Warranty: Dealers often include a warranty, especially for cars under 10 years old. That means if something breaks early, they might fix it.

Car Checks: Good dealers check the car for problems before selling. Some also service it and clean it up.

Easier Process: Dealers handle the paperwork like rego transfer and roadworthy certificates.

Finance Options: Some dealers let you pay the car off over time.

Cons of Buying from a Dealer

More Expensive: Cars from dealers usually cost more than private ones.

Pressure Sales: Some dealers might try to sell you extras you don’t need, like paint protection.

Pros of Buying from a Private Seller

Lower Price: Private sellers usually ask for less money than dealers.

Room to Bargain: You can often haggle and get a better deal.

More Car History: The owner may tell you how the car was used, if it was serviced well, or if it was in an accident.

Cons of Buying from a Private Seller

No Warranty: If the car breaks after you buy it, you’re on your own.

No Legal Protection: If something goes wrong, it’s harder to get help or refunds.

Risk of Dodgy Cars: Some sellers may not tell the full truth about the car’s history.

What to Always Check Before You Buy

No matter where you buy your used car, you should always do these checks:

1. Do a VIN Check

A VIN Check helps you find the car’s full history. It shows:

• If it was stolen
  
  

• If it was written off
  
  

• If it has money owing (encumbrance)
  
  

2. Do a REVS and PPSR Check

A REVS Check and PPSR Check $2 will tell you if the car has a loan on it. If it does, the finance company could take it away even after you buy it!

Tips for Buying from a Dealer

• Ask for a copy of the car history report.
  
  

• Check if the dealer is licensed.
  
  

• Test drive the car.
  
  

• Ask what’s covered by the warranty.
  
  

• Check the Top Mistakes Aussies Make When Buying Used Cars so you don’t fall into a trap.
  
  

Tips Buying from a Private Seller

• Ask lots of questions: Why are they selling it? Who drove it? Was it in any accidents?
  
  

• Always meet in a safe public place.
  
  

• Bring someone with you if you can.
  
  

• Do a VIN and PPSR check first.
  
  

• Look for signs the car was damaged before. Check out this guide:
  How to Spot a Written-Off or Flood-Damaged Car
  
  

First-Time Buyer? Start Here

If this is the first time buying a car, guide in below like may covered what came across. This guide is easy to follow and written help buyers in Australia:
Second-Hand Car Buying Guide for First-Time Buyers

So, Who Wins — Dealer or Private Seller?

It depends on what matters more to you.

Need peace of mind? 

Go with a Dealer – you get a warranty and legal cover.
 

Want to save more money?

Go with a Private Seller – but do all your checks! 

Both ways can be good — if you know what to look out for.

Final Thoughts

No matter where you buy your used car, the most important thing is to do your homework. Always check:

• The car’s history using a VIN Check

• If the car is under finance with a REVS Check Qld for Queensland

• If it was written off or stolen using a PPSR Check $2

Taking 5 minutes to do these checks could save you thousands of dollars — and lots of headaches.

If you’d like help checking a car’s history, visit VinVerify.