There are several differences between purchasing from a dealership and purchasing private party, however, most of those can be summed up in one word—legwork. Automotive dealerships will do the banking and government documentation for you—often including paying your sales tax (where applicable), registering your vehicle for the first year, and/or paying off any current auto loans you have. When buying or selling private party you will be the one doing the paperwork and taking it to the respective banking and government establishments. However, by forgoing the conveniences of working with a dealership you are likely to be able to keep more of the vehicle’s sales price in your own pocket.