Price isn't the only thing that changes between a private-party purchase and a dealership — paperwork, protection, and financing all work differently too. Here's the honest tradeoff.
Private sellers typically price lower than dealers, since dealers factor in reconditioning costs, overhead, and profit margin on top of what they paid to acquire the car. This is the main draw of buying private.
Dealers offer on-site financing, trade-in options, and a wider inventory to compare in one place. Private sellers offer exactly one car — if it's not right, you're starting your search over elsewhere, and you'll need financing arranged separately in advance (see the next section).
Most banks and credit unions can finance a private-party purchase, but you'll typically need pre-approval before you find the car, since there's no dealer finance office to handle it on the spot. Build this into your timeline if you're going the private route.
Dealer sales come with certain consumer protections that vary by state, and many states require dealers to disclose known defects. Private sales are typically "as-is" with far fewer protections — what you see is what you get, with little recourse afterward if something goes wrong.
A dealer has already done some level of inspection (even if minimal) before listing a car. With a private seller, the full burden of verification — vehicle history report, independent inspection, confirming the title is clean and matches the seller's ID — is entirely on you. See the inspection checklist and how to read a vehicle history report before any private purchase.
Trading in a car is only possible at a dealership. If you're selling your current car privately to fund a private purchase, you'll be running two separate transactions instead of one bundled deal — more effort, but often more money overall (see trade-in value).