When looking to buy a used car, many people consider buying directly from a private party.

One risk is pretty obvious. Buying a used car from a private party is simply buying "as is". When you purchase privately, you're buying a car exactly as you see it. Any problems the car has, even hidden ones, become your problems.

There are, however, additional risks that most people are not aware of.

·         If the vehicle is found to be stolen, then the buyer is out of luck. The law says that a stolen vehicle returns to the original owner. The buyer loses the whole purchase price, and would have to sue the seller, who by then may or may not be able to be found.

·         There is also the risk of liens being registered against the vehicle. Any liens that are found to be registered against the vehicle would then be the responsibility of the new owner ... they would have to either pay out the lien, or face repossession of the vehicle by the lien holder.

·         The vehicle may have had prior accident damage, and the buyer would have little or no recourse.

When consumers buy a vehicle from a registered dealer, they are protected by numerous pieces of legislation, such as the Sale of Goods Act, the Consumer Protection Act, and the Business Practices Act, to name a few.

By law, dealers must guarantee title against stolen vehicles. Also, dealers must guarantee that there are no liens on the vehicle. They must use Bills of Sale that adhere to the law, and are required to report all known material facts about the vehicle.

Here are some services a dealer can provide that a private seller cannot.

·         A Dealer's Warranty

·         After Sale Service

·         Recourse

·         Title Guarantee Against Stolen Vehicles

·         Financing

·         Extended Warranties

·         Lien Free Vehicles

·         Trade-Ins