Used Car From a New Car Dealer
4 minutes

Are there advantages to buying a used auto from a new car dealer versus a used dealer or private party? Learn some tips on buying from a new car dealer.

When buying a used vehicle, there is a multitude of options to consider. Besides choosing a vehicle to suit the individual needs of the car owner, a decision has to be made on where to buy the vehicle. Some options may include new car dealers, private parties, used car lots, online brokers, or auto auctions.

The best decision on where to buy a used car largely depends on the individual needs of the car buyer. To help the car buyer make an informed decision, this article worked out by professional essay writers from assignment pay dwells on the advantages and disadvantages of buying a used vehicle from a new car dealer.

Used car prices and the new car dealer

As a general rule, new vehicle dealers used car prices are higher than other purchasing options. When a dealer sets a selling price on a vehicle, they generally use an appraisal based on retail value from appraisal sources. To help ensure a fair value price, look up the appraisal value. The price of the vehicle should be at or below the retail value.

However, there can be exceptions to the general rule. Dealers have a lot of money tied up in their inventory and have to move it quickly. Dealers understand that a vehicle that sits on the lot for too many days can end up costing them money. To get a better deal, ask the dealer if they have any aging inventory they want to move at a reduced price.

Advantages of buying a used car from a new car dealer

The biggest disadvantage of buying from a new car dealer is the higher price tag. In part, new car dealers have to cover their overhead and a lot of their profits come from used vehicle sales. There are some advantages to buying a used vehicle from a new auto dealer that may warrant paying a higher price. Some of the advantages may include

  • warranties
  • financing options
  • reconditioning quality
  • trade-ins
  • paperwork

New car dealers may supply a written warranty with the vehicle sale. They usually have different financing options to meet the buyer’s needs. Most used cars go through a quality and safety reconditioning process. The buyer can trade in a vehicle to offset the purchase price and new car dealers will take care of all the needed paperwork.

Pre-owned certified used cars

Car manufacturers don’t like to use the word used cars, it sounds kind of cheap, so they prefer the word pre-owned. For a vehicle to be crowned with the title “certified pre-owned” the car manufacturer has certain guidelines that must be adhered to by their new car dealers.

For a dealer to be able to certify vehicles they must be authorized by the factory as a certified pre-owned dealer. There is usually training involved for the technicians as well as the salespeople. The following is a generality of what qualifies a vehicle as pre-owned certified. Some of these qualifications can vary by manufacturer.

Certified pre-owned vehicle qualifications

  • Newer model vehicles are generally not older than 6 years
  • Mileage limit, generally under 80,000
  • Must pass a rigorous comprehensive inspection

Advantages of buying pre-owned certified vehicles

Since car manufacturers are motivated to sell their branded used cars, most pre-owned certified vehicles have some great advantages over buying a used vehicle from a used car lot or private party. One advantage is the rigorous comprehensive inspection. If the dealer finds any item that doesn’t pass the inspection, they must make a correction or the vehicle doesn’t pass.

If any corrections need to be made, the factory usually insists that only genuine factory parts are used as replacement parts. Safety takes top priority. In most cases, if the tire tread or brake pad lining is below 50%, the tire or brake linings must be replaced. Below are some other important advantages. Keep in mind that some of these advantages may vary among manufacturers.

  • Lower rate financing through the factory financial arm
  • Limited warranty, usually covers powertrain components to 100,000 miles
  • Limited comprehensive warranty for a short mileage/period
  • Buyer given a vehicle history report
  • Peace of mind of a comprehensive inspection
  • 24/7 roadside assistance programs


The bottom line to get a good deal on a used car from a new car dealer is to negotiate the price and financing rate. Once a used vehicle is found for purchase, don’t commit to the sale on the first visit. Make a note of the vehicle model, year, odometer reading, and optional equipment.

Once the information is obtained, look up the information and get the retail value to ensure you’re paying a fair price. Search used vehicle sales websites for similar models to use as a negotiation tool. Before finalizing the sale, ask the dealership to run a vehicle history report to ensure there are no underlying problems with the vehicle.


Buying a used car from a new car dealer can be beneficial, though the price tag is generally higher than other options.

A dealer’s appraisal of the vehicle should be at or below retail value, and dealers may reduce their prices on aging or overstocked inventory.

Advantages of buying from a new car dealer include warranties, financing options, reconditioning quality, trade-ins, and paperwork.

Certified pre-owned vehicles are subject to manufacturer guidelines and must pass a rigorous comprehensive inspection with genuine factory parts for any replacements.

Benefits of certified pre-owned vehicles include lower-rate financing through the factory financial arm, limited warranty coverage, vehicle history reports, and 24/7 roadside assistance programs.

To get a good deal on purchasing from a new car dealer, shoppers should negotiate the price and financing rate, look up similar models for comparison purposes, and get a vehicle history report.

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