I was looking over our posts on Craig's List advertising our inventory. When doing this I also look at other peoples ads to see what they are doing and if it is more interesting than what we are using. Just looking for a better way to do things. I had an ad open and copied the phone number and pasted it into the search bar. I was stunned, the search brought up 12 listings for cars, and all were listed for sale by owner rather than dealer.
As of a few days ago it is to a buyers advantage to purchase a car from an individual rather than a dealer because of the raise to 9.3% sales tax in Phoenix.
Arizona Law stated that if a person sells more than 4 cars per year he is a dealer and must be licensed. The penalties can be very harsh. You can also get a wholesale dealers license that allows you to sell to other dealers, but not to members of the public. The person who posted these cars for sale is skirting trhe law in several ways, all designed to save him money. He doesn't have to collect or pay sales tax, he doesn't have to invest in a sales lot etc.
The main difference is that by buying from other than a dealer, you lose the "implied warranty" that must go with every car purchased from a dealers. This says that the car will run and drive for 500 miles of 15 days from date of purchase. If anything goes wrong with the purchase you have no recourse. If you buy from a dealer, there is a bond of up to $100,000 to take care of any problems with title, mileage, or mechanical issues that could arise.
I'm sure that everyone has heard horror stories about cars that were purchased where the motor or transmission were bad, where there were liens on the title and the seller was nowhere to be found when this happened.
Be safe rather than sorry, buy from a dealer.
PS The dealers phone is 602-376-17**
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