If you are thinking of purchasing from a private seller, then it is certainly a used car. We’ve got tips on how to buy a car from a private seller. There are pros and cons to it and things you should and shouldn’t do. We’ve covered it all for you!
How to Buy a Car from a Private Seller
Buying a car from a private seller can be a good choice in terms of the amount you spend. Similarly, there are no additional fees involved if you are buying the car from a private seller. Here are the steps and what you should be careful about when you buy a car from a private seller.
What you’ll read about
Fix the Budget
Starting the process after finalizing the budget is the most practical way to go about it. For instance, if you are not stuck on a particular model, having a budget will give you a wider choice, and the chances of getting a car in good condition are higher. Similarly, with a budget in hand, you might not go overboard with the choices available, and you certainly won’t be spoilt for choices!
Research the Car
If you are particular about a car, then find out everything about it. For example, check car reviews, used car reviews, and similar forums where such discussions happen. That certainly will give clarity to what the car offers and whether it is reliable in the long run.
Consider Sellers Closer to Your Area
Make use of websites that help you contact sellers. Categorize them by sellers who are closer to you and, consequently, by the ones that have offers that align with your budget. In addition, this will make it easier for you to do the necessary background checks on the seller and the car.
Contact the Seller
This need not be to negotiate the price, but it is necessary to discuss the details of the sale and to fix a time for a personal meetup. This will give you the time to ask the essential questions. For instance, the reason for the sale, the odometer reading, and the collision history need to be discussed with the seller.
However, make sure that the meeting space is public and ask for the seller’s identification for safety reasons.
Examine the Car
This is your chance to inspect the car for any external damage. For instance, closely inspect for dents, rust, and scratches, check the doors, and see if they close and open well.
In addition, use this opportunity to test drive the car and maybe take it to a mechanic you know. This will offer better insight into the performance of the car, and a mechanic will be able to spot any major issues with it.
Similarly, get the vehicle history report that would give you most of the details regarding the car, such as accidents, number of owners, or odometer reading.
Negotiate and Make an Offer
After examining the car, you will certainly be in a better place to see if the price is fair and then proceed to negotiate based on your findings and how you feel about it. For example, with multiple defects or repairs, you can ask for a price lower than what was asked.
Similarly, make sure the seller pays off any outstanding loan on the car.
Get Ready with the Documents
Once you finalize the price, in addition to making the payment, you must take care of all the paperwork. This will vary with each state and will be mentioned on the state DMV website. However, there are certain documents that you will need while buying a car from a private seller.
Car title, car registration, bill of sale, and warranty are the documents a seller must keep ready for the private sale of their car. A buyer will register the car, get proof of insurance, and pay the taxes when they purchase a car from a private seller.
Why should you buy a car from a private seller?
Here are the advantages of buying a car from a private seller.
- Lower prices than dealerships.
- It is a fair price for the value, and you can get a well-maintained car.
- There is a better chance to negotiate.
- No payment of dealer fees and extra warranties.
Why shouldn’t you buy a car from a private seller?
Here are the disadvantages of buying a car from a private seller.
- There are no guarantees or warranty.
- There are limited financing options, and you must pay in cash most of the time.
- You cannot cancel the deal once you’ve made the payment.
- Most states don’t extend their Lemon Law protection to used cars.
- Increased risk of repairs.
Final Thoughts
There are many apprehensions about car purchases from a private seller. There have been instances of fake escrow or similar scams. However, if you pay close attention to certain things, for instance, getting the vehicle history report, checking the VIN, dealing with local sellers, and not buying a car without a title, you can make things work for you.
Getting insurance is also equally important after the purchase. Comparing quotes with the help of services like the Way app will help you get the best insurance deals. Therefore, buying a car from a private seller is not something to be scared of if you have a checklist ready and do your research.
