Written by Deborah Marie Wedemeyer
I’m Deborah at Testarossa Motors. People ask me this all the time, and the honest answer is that both can work. Here’s how they compare.
Price
Private sellers often ask less because they have no overhead. A dealer price includes reconditioning, paperwork and a $225 documentary fee at our lot (we list it up front). Compare the out-the-door number, not the sticker.
Title and paperwork
With a private sale you and the seller fill out Form 130-U, and you file at the county tax office within 30 days. A licensed dealer handles title and registration paperwork for you. Always check that the title is clean and the name matches the seller’s ID.
Financing
Private sellers can’t arrange a loan. A dealer can submit your application to lenders. At Testarossa we are not buy-here-pay-here; we work with outside lenders, credit scores of 575 and up are the starting point, and approval is never guaranteed.
Protection and recourse
Texas has no lemon law for used cars, and most used cars from either seller are sold as-is. A licensed dealer is regulated by TxDMV and has a business address you can come back to.
Why the risk is higher with a private seller
Most private sellers are honest people selling their own car. Still, the risk is much higher when you buy from a private seller, because there are numerous scams on venues like Craigslist and Facebook Marketplace. I hear about fake listings for cars that don’t exist, sellers who don’t actually hold the title, requests for a deposit to “hold” a car, curbstoners (unlicensed dealers posing as private sellers), and cars with odometer or title problems.
If you go private, protect yourself. Make sure the seller’s name matches the name on the title. Meet in a public place. Never wire money or pay a deposit before you have seen the car and the title. Check the VIN before you pay: here is how to check a used car for open recalls, and the flood-damaged used car red flags to look for.
Checks to do either way
Run the VIN for recalls, look for flood signs, and get a pre-purchase inspection.
FAQ
Often on sticker, but compare total cost.
Yes, signed by both of you.
$225. Call (281) 332-6568.
Yes. Most private sellers are honest, but scams are common there: fake listings, sellers who do not hold the title, deposit requests to hold a car, and curbstoners. Make sure the seller's name matches the title, meet in a public place, never wire money, and check the VIN before you pay.