Buying a Car Privately or through a Dealer…The Pros and Cons

Considering buying from a dealer or a private sale and confused about which option is better?

Having worked in car yards for 18 years before going it alone as Quantum Vehicle & Equipment Finance I feel I am quite experienced in offering advice to my clients. There are pros and cons with both options and ultimately it’s up to you, the client, as to what you feel comfortable with, but I will do my best to guide you through the maze. If you feel uncomfortable negotiating with a dealer for a brand new car, you should consider utilising my new car buying service where pricing is sourced from various dealers and negotiated on your behalf saving you time and money!

Buying through a dealer Pros:

  • The car comes with a statutory warranty
  • You can trade your car in against the new car
  • The car has a guaranteed clear title which means there is no money owing on it.
  • Dealers have a variety of cars in one location


  • Dealer margins mean you can sometimes pay top price as they have to pay advertising, rent, administration and salespersons commission.
  • The aftercare person will try and sell you a heap of extras at inflated prices. Before you know it you have spent thousands more than you budgeted and more than the car is worth.
  • High pressure sales tactics = Impulse buying that can create anxiety after the purchase.

Buying Privately Pros:

  • No dealer margin or overheads saving you more $$$
  • Typically more flexible on pricing as they are keen to move on to their next car
  • No games or high pressure selling techniques


  • The car may have money owing on it – so you need to do your PPSR checks
  • There is no warranty
  • You may need to pay for a mechanical inspection for peace of mind
  • No trade in options

If you are looking at purchasing privately, I can assist with Car History reports that show if the car has money owing to a bank, been written off, stolen, had the speedo wound back and the owner history which can provide peace of mind. I can also offer warranties whether they are manufacturer extended warranties or mechanical breakdown warranties for older cars that are out of warranty.

So in closing, I welcome you to contact me via the form to your right if you require further advice or clarification around purchasing and financing your next car. I have access to numerous lenders and the knowledge and experience to find you the right lender and best interest rates for your situation.

All the best in your search for a new car


0% Interest Rates – To good too be true?

If it sounds to good too be true, then it probably is!

It is becoming very common to see manufacturers adverting 0% comparison rates on purchases of brand new cars. It is not until you get into the dealership until you find out of any “catches”. This form of finance is referred to as “sub-vented finance”.

What sub-vented finance means is that the manufacturer ie Ford, Holden, Mazda etc will pay back the interest to the financier from the profit of the sale of the car, which means the manufacturer needs to keep enough profit margins from the sale price to be able to cover the loss of interest. This means the vehicle price may not be negotiable, or it can only be discounted to a certain value if you were taking up the 0% finance offer. The finance term is generally shortened to a 36 months with a hefty deposit ie 10%-30%. The reason for this, is the shorter the term, the less interest that is payable by the manufacturer. This is turn means higher monthly repayments for the customer which means they fall outside the banks qualifying criteria which in turn gives the salespeople the opportunity to sell as they normally would, including the car salesman, the aftermarket consultant and the Finance & Insurance Manager (or referred to as the Business Manager).

Quite often the dealership will openly advise you of the difference in prices if you opted to take up the finance offer, or not. A dealership knows that half the sale is getting people into their dealership and then they need to create the urgency when face to face with a customer and they will do their best to get a commitment from the customer before the customer can get home to do their own research.

You will find that very limited information will be given over the phone, as the salespeople are trained to only give what is needed and if the client requires more information, they will have to go into the dealership and speak to the Business Manager.

The 0% comparison rate advertising campaigns are just another way to get people into their dealerships, creating more opportunity for sales. Some people take up the offer and some don’t, but still buy the car from that dealership without taking up the finance offer. This also gives the dealership the opportunity to attempt to upsell other products, such as insurances, warranties and aftermarket products to increase the overall margins.

You also need to be very cautious if you have a trade in, as often this will be used as a tool to retain profit margins, where the dealership will undervalue your trade to make up any other loss, so it is good to go in armed with what a realistic trade value is or better yet, sell it privately if you have the time and patience.

All in all in my opinion, you are better off negotiating the best price and financing your car elsewhere. And if you really don’t want to do the  negotiating then call or email me @ and I will do the negotiating for you!

Hello and Welcome!

Welcome to Quantum Vehicle & Equipment’s web page!

I hope you find it easy to navigate and if you have any queries, please don’t hesitate to contact me as I would love to assist you with your Vehicle or equipment purchases.

Regards Lisa

Director – Quantum Vehicle & Equipment Finance