It’s true what they say: When you buy a new car, it starts to depreciate the moment you drive off the lot.

While all vehicles depreciate, UCDA studies show that three to five-year-old vehicles have already undergone most of their depreciation.

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Dealer vs Private Seller

Buying a car from a dealer vs a private seller

Compare benefits of buying from dealers vs private seller

Buying from a private seller

  • With a private seller, you lose the 13% trade-in tax savings.
  • Private sellers often determine their asking price by first checking out what dealers are asking for a similar vehicle. They're sold 'as is' and it's 'buyer beware'.
  • Private vehicle sales offer no guarantees. The buyer often has no recourse if the vehicle shows signs of significant problems, even days later.
  • There is nothing holding a private seller to revealing their car’s history. Most sellers will say that they took really good care of the vehicle.
  • There are hidden costs such as an expensive certification and emissions testing that the seller may not be willing to pay for.

Buying from a dealer

  • Dealers have access to financing programs, and can offer trade-in options which can make your used car purchase more affordable.
  • Dealers can offer warranties and after-sale service for used vehicles. Consumers also have access to a Compensation Fund for their protection.
  • Dealers guarantee that the vehicles they sell aren’t stolen and don’t have any liens against them. They must also supply you with all known material facts about the vehicle, such as previous accidents.
  • When a dealer buys a car to resell, he has it thoroughly inspected and refurbished – both mechanically and cosmetically. That usually accounts for most of any difference in cost between buying privately and from a dealer.
  • There are hidden costs such as an expensive certification and emissions testing that the seller may not be willing to pay for.
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Accident disclosure

When buying a used car, its accident history will affect your decision to buy it or not..

Dealer or private seller?

Ready to buy a used car? You have a choice – you can buy from a used car dealer or from a private seller..

Have a question?

Call us and we'll be happy to help.

1-800-268-2598 Monday - Friday 9AM - 5PM Eastern Time

Frequently asked question

UCDA members must abide by a Code of Ethics requiring full disclosure about the vehicles they're selling. It requires them to present their vehicles fairly and accurately, to deliver on all promises and to deal with reasonable complaints, promptly.
UCDA member dealers are located in over 500 towns and cities across Ontario. Look for the UCDA logo in the dealership in the dealer's advertising or use the search tool in this website to find UCDA members near you.
Not really, private sellers typically go to the Internet to see what dealers are charging for a car like theirs. Then they advertise it at or near the dealer's price the dealer's price includes all the legal protections provided by the legislation. An example of this protection is the dealer's compensation fund, if you buy a vehicle and you have proof that the dealer hasn't fulfilled their promises you can make a claim of up to $45,000 this protection is not available for private sales.
A curbsider is someone who poses as a private seller pretending to sell their own personal vehicle. In reality they are illegally in the business of selling vehicles. If you buy from a curbsider you have no protection.
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