Buying from a private seller is often seen as the best way to get a bargain on a used car. While you have to do more of the legwork yourself, the upside is usually a lower price tag.
Australians certainly seem willing to make that trade. Private sellers moved 139,036 used vehicles in July 2026, accounting for close to 58% of the 240,311 used vehicles sold during the month.
Private sales also jumped 26.2% from June, almost three times the 9.1% increase recorded by dealers.
But if you’re buying without the protections that come with a licensed dealer, the saving needs to be big enough to make that trade-off worthwhile.
How big does the saving need to be?
Savvy analysis suggests a private-sale vehicle should be at least 10% to 15% cheaper than a comparable dealer vehicle to make the trade-off worthwhile.
Here’s how the different discount bands break down:
| Private-sale discount vs a comparable dealer vehicle | What it means |
|---|---|
| Under 5% cheaper | Think carefully. Even a relatively modest dealer discount could wipe out much of the apparent saving. |
| 5% to 10% cheaper | A grey area. Whether it’s worthwhile depends much more on the car’s condition, service history and what an independent inspection finds. |
| 10% to 15% cheaper | The saving starts to create a meaningful financial buffer for taking on the extra risk and responsibility of buying privately. |
| 15% or more cheaper | A low price tag may be attractive, but an unusually cheap vehicle should prompt more due diligence, not less. |
Note that there’s no single percentage that makes a private sale good value. Savvy’s 10% to 15% range is a general rule of thumb, based on the point where the saving starts to create a meaningful buffer once dealer negotiation and common used-car repair costs are taken into account.
The actual value of any deal will still depend on the car, its condition and history, the price being asked and your own circumstances. The reasoning behind the 10% to 15% range is explained further below.
The sticker price doesn’t tell the whole story
Many buyers compare a private listing against a dealer’s advertised price. But most dealers are willing to negotiate, and once that’s factored in, a private-sale saving that looks substantial can shrink quickly.
AADA and AutoGrab found that 51.1% of one-to-five-year-old used vehicles sold in June had been discounted, with the average reduction among those vehicles reaching 3.7%.
With that in mind, let's compare a dealer car advertised for $33,257, the average used car loan through Savvy, with private-sale vehicles at different discount levels:
| Private-sale discount | Private price | Saving vs dealer asking price | Saving if dealer price falls 3.7% |
|---|---|---|---|
| 5% cheaper | $31,594 | $1,663 | $432 |
| 10% cheaper | $29,931 | $3,326 | $2,095 |
| 15% cheaper | $28,268 | $4,989 | $3,758 |
At 5% cheaper, the private vehicle initially looks like a $1,663 saving. But if the dealer reduced its $33,257 asking price by 3.7%, it would fall to around $32,026, leaving just $432 between the two cars.
At a 10% private-sale discount, the gap is still around $2,095. At 15%, it grows to $3,758, giving the buyer a much more substantial buffer for taking on the extra responsibility of buying privately.
The 3.7% figure isn't a guaranteed dealer discount. It was the average reduction among discounted one-to-five-year-old vehicles, and plenty of cars will sell at their original asking price. Many private sellers will be open to negotiation, too.
But it shows why the difference between two advertised prices doesn't always represent what you'll actually save by buying privately.
It's also important to make sure any price comparison is genuinely like for like.
A $15,000 private-sale car isn't necessarily better value than a $20,000 dealer car simply because the badge and model name are the same.
Age, kilometres, variant, condition, specification and service history can all make a substantial difference.
Look beyond the upfront cost
A private-sale vehicle isn’t necessarily worse or more likely to have problems than one bought from a dealer. The key difference is that more of the risk sits with the buyer.
Cars bought from licensed dealers come with protections under Australian Consumer Law, including guarantees around acceptable quality and matching their description.
Most dealer sales also come with a statutory warranty for cars under a certain age and kilometre limit, though the exact thresholds vary by state. Under this, you may be covered for up to three months or a set number of kilometres for faults that affect the car's safety, reliability or roadworthiness, meaning the dealer has to fix an eligible defect within that window.
Some states (New South Wales, Victoria, Queensland and South Australia, as well as the ACT) also have cooling-off periods when buying from a licensed dealer, giving you between one and three days to change your mind and return the vehicle, depending on where you live.
Those protections don't apply when you buy from a private seller.
This means the saving needs to do more than simply beat the dealer's asking price. It also needs to provide a financial buffer if something goes wrong after the sale.
That buffer is becoming more important as repairs get more expensive. ABS data shows vehicle maintenance and repair costs rose 5.9% in the 12 months to July 2026.
Even smaller repairs can add up quickly. A battery or brake job might take a few hundred dollars off the buffer, while an alternator or a full set of tyres can push the bill closer to $1,000.
Going back to our example above, a 5% saving of $432 could disappear quickly if an unexpected repair crops up. A $2,095 buffer gives you room to absorb one or two of those costs and still come out ahead. That’s the kind of expense Savvy’s 10% to 15% rule of thumb is designed to allow for.
It doesn’t, however, factor in a major mechanical failure. A clutch replacement, for example, can cost roughly $500 to $2,000, while major transmission work can run from around $1,000 to more than $5,000. An engine replacement can cost anywhere from about $3,000 to $11,000.
A bill at that level could wipe out a 10% saving entirely, and in some cases a 15% saving too. That’s why the condition of the car matters just as much as the discount.
Again, without the consumer protections you need to do your due diligence. Nearly a third of cars assessed by Consumer Affairs Victoria were found to have their odometers rolled back by 25,000 km.
Buying privately? Do your homework first
When buying from a private seller, it’s up to you to make sure the car and its history stack up.
Before agreeing to a price, make sure you’ve covered:
- Vehicle paperwork: check the registration details and VIN against the car and the seller’s documents to make sure everything matches. If the details don’t match, verify them with the relevant state or territory registration authority before buying.
- PPSR search: a Personal Property Securities Register (PPSR) check can show whether there’s a security interest registered against the car, as well as whether it has been recorded as stolen or written off.
- Service history: look for regular servicing, receipts and consistent kilometre records. Gaps in the history are worth asking about, particularly on an older vehicle.
- Test drive: drive the car in a few different conditions if possible and pay attention to warning lights, unusual noises, braking, steering and how smoothly it accelerates and changes gears.
- Independent inspection: a qualified mechanic can pick up issues that may not be obvious on a test drive. This is particularly worthwhile if you’re not confident assessing the condition of a used car yourself.
None of these checks can guarantee a problem-free car, but they can give you a much clearer idea of what you’re buying before you take on the extra risk of a private sale.
The final thing to work out is how you’re paying for the car. If you need finance, comparing your car loan options can help make sure you’re not paying more than you need to.
Just keep in mind that used vehicles typically need to be under 15 years old by the time the loan is paid off, which can affect your options if you’re buying an older car.
This applies even if you buy from a dealer. A dealer vehicle may offer better value because of its condition, price or added consumer protections, but that doesn’t automatically mean the finance does. You’re free to compare the dealer’s offer with other car loan options before you commit.
When comparing, don’t focus only on the repayment amount. The interest rate, comparison rate, fees and loan term can all make a significant difference to the total cost of your loan.
