Buying a used car – dealer versus direct owner

Buying a second-hand car from a dealer instead of directly from the owner has its advantages.

There’s a saying that car owners never forget their first car purchase. If you are planning to make that leap, then you are probably asking yourself: “Who should I purchase my car from?”

To ensure your initial taste of second-hand car ownership is a pleasant one, we’ll be comparing the pros and cons of buying from a dealer versus buying from the owner direct.

Buying from used car dealer

Most first-time car owners will opt to purchase their second-hand car from a used car dealer out of convenience.

Used car dealers tend to have a wide inventory of cars readily available - you may head down to any of them and browse their available stock. If there is nothing at one place that meets your needs and fits your budget, you can easily visit another showroom in the vicinity, as most used car companies are within walking distance from one another within the same cluster, such as Automobile Megamart and West Coast Car Mart. 

If you're interested in a particular car, you can arrange for a test drive and request for the necessary documentation to be drafted. Depending on your loan approval, insurance and the car’s evaluation report, you could be driving it home within a few working days.

Potential drawbacks include no guarantee for the long-term reliability of the car. Certain car dealerships may do temporary fixes for mechanical issues and just focus on flogging the vehicle. Not all salesmen may be upfront about the known condition of a vehicle, and the less honest ones may try to persuade unsuspecting customers into purchasing a unit that is not in the best of health. 

However, buying from car dealers has been made safer for car buyers with the CaseTrust-SVTA Accreditation Scheme. 

This scheme is a joint initiative by the Consumers Association of Singapore (CASE) and the Singapore Vehicle Traders Association (SVTA). The accreditation is awarded to car dealers which have high standards for business integrity, fair trading practices and transparent transactions. Dealers accredited under this scheme will probably ensure that your buying experience is smooth enough.

Bigger players in the used car sector, such as Auto Selection, try to strike a better balance between product quality, selling price and aftersales support. 

"Is your motorcar listed on Motorist for my easy reference?" 

Buying from direct owner

A direct sale transaction is usually cheaper (for a similar second-hand car), since one does not have to pay for any dealer mark-up.

However, the process is slightly more tedious as the buyer will be solely responsible for dealing with all the paperwork and legwork associated with the transaction.

The usual procedure to own and drive your car includes ownership transfer, LTA transfer fee, COE renewal (if applicable), road tax payment, motor insurance, and financing-related matters.

The buyer will also need to arrange a suitable time and place to view the car, which can prove troublesome if both the buyer and seller are unable to schedule a mutually-agreed appointment.

The average buyer might (quite rightly) find these administrative processes too much to handle, and thus conduct their transaction through dealers, who will handle the documentation and related tasks on the buyer’s behalf.

Enter a sensible world of second-hand cars with Motorist mListing.

An easy way to buy used cars

If you are still unsure about taking the dealer route or the direct-owner route for your car-buying journey, you will be glad to know that Motorist has supercharged its mListing platform, which allows you to conveniently and confidently peruse a variety of second-hand cars from direct owners (consignment) and used car dealers alike.

While browsing through our comprehensive selection of used cars, you can also check the loan information for each listing within the same link, without needing to navigate away from the page or make any phone enquiries. Our "Save" function (just click the "heart" icon❤️) helps you to shortlist several cars for consideration and compare their prices and features easily.

For cars nearing the end of their COE cycle, the process to determine key costs like depreciation before and after COE renewal has been simplified to an effortless click-and-read. 

After you have agreed with the seller/dealer on a particular offer, Motorist could facilitate a vehicle viewing for you to inspect the vehicle. We could even help you arrange for a car evaluation with VICOM.

Last but not least, Motorist is ready and happy to settle all the necessary paperwork for you. With Motorist, you no longer have to choose between dealers or direct owners when buying your used (but not abused) car - you will get the best of both worlds through our Motorist platform for used vehicles.

Read More: The most driving fun you could have for $60k in Singapore

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