Think about used car before purchasing your next vehicle

Private sales and dealer lot sales are two different types of transactions. Knowing your differences will help budget-minded used car buyers make an informed decision about where to go for their next purchase.

Kelly Blue Book Classification

Vehicle pricing resources, such as those found on the Kelley Blue Book website, offer various meanings based on car make / model, year of manufacture, and state. Users enter information about the car, and the system offers a number of prices. These prices are the “dealer price” and the “private value”. These two prices differ due to the way dealerships generally operate.

Used car dealer

One of the main reasons dealer values ​​are higher is the process of selling a car. A used car dealer usually pays for detailed inspections of incoming stock, and even restores previously purchased cars with interior upgrades and new parts before putting them in a lot. Customers of well-known companies know that they receive cars that have been thoroughly tested by technicians. They don’t get that treatment from a private seller, where someone with the title is simply trying to get rid of their car for profit.

cars for sale in fresno dealer also has the right and obligation in some cases to add warranties, making the sale more valuable.


Auto financing can affect the total cost of a car at a car dealership. Financing is becoming increasingly popular in the modern automotive market. This gives customers the opportunity to walk away with products that they might not otherwise be able to afford. Not everyone has $ 10,000 to buy. As a result, dealerships have become effective intermediaries between buyers and banks or other financial companies.

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Dealer margin

Some customers have trouble financing their vehicle through an outside company. In some cases, this is called the dealer margin or the dealer reserve, while some call it a “settlement supplement.” Keep in mind that margins give buyers influence during price negotiations. The lot has already secured money, the buyer wants a car, and the seller will do anything to close the deal, without losing money. A good place to start bidding is a little lower than the financing price.

How to get the car you want cheap

Sometimes people choose private sellers simply because “the price is right.” You can, of course, find a car you want to list a little lower than expected, but private sellers don’t have to worry about things like reputation while maintaining favorable public perception and trust. Buying a private one can be a real game.