How to Buy a Car From a Private Seller
Posted by Frank Gogol in Auto | Updated on August 23, 2022
Buying a car from a private seller is quite different compared to buying a car from a dealer. It comes with a lot of uncertainty and you may find it hard to trust this deal, but you can’t help feeling attracted to the lack of taxes and better price. How to buy a car from a private seller in a safe manner?
If you’re worried about buying a car from a private seller, this article will help you deal with the situation accordingly and make the deal safely.
Table of Contents
Should You Buy a Car from a Private Seller?
Is it a good idea to purchase your new car from a private seller? It’s not uncommon to have a lot of concerns. Buying cars from private sellers has advantages and disadvantages, and you can choose by considering these things.
Pros of Buying from a Private Seller
It Takes Less Time
You don’t spend that much time when you buy from a private seller as opposed to buying from a dealer. So, you will probably be able to pay for the car immediately without wasting more time. This is because the seller just wants to get the money and be done with it. It’s a great thing when you’re in a rush to get a new car.
Meanwhile, professional dealers will take longer to sell you the car, and in some cases, they may even turn down your lower offers.
Level Playing Field
Professional car dealers are already used to doing this and they have most likely sold a lot of cars in the past. Conversely, you’ve only sold and used very few cars, making you more inexperienced. Buying from a private seller is thus more convenient because both of you have the same experience, which puts you on the same level. This way, you can even negotiate in a better way.
There Are Better Prices
When you buy from a private seller, you will end up paying less simply because there aren’t any dealer fees, and there won’t be any additional warranties to worry about. This is the best thing when you are someone who doesn’t have a high budget.
Cons of Buying from a Private Seller
No Financing Options
Buying a car from a private seller means you will have to pay for it upfront. It’s highly unlikely to get credit for purchasing a car this way. It may only be possible if you have a great relationship with a credit union or bank already, which might allow you to get a personal loan or car loan.
There Are No Warranties
Unlike a professional dealer, a private seller will not give you any warranty. This is not ideal if you are scared the car might have defects after a while. You may only be able to transfer a warranty from the seller if the car is not that old and if the mileage is still pretty low.
No Protection from Lemon Laws
Usually, you are protected under the lemon law when you buy a defective vehicle. Unfortunately, this doesn’t apply if you buy the car from a private seller. Only certain states extend their lemon laws to used cars. Even in this case, private sellers may be excluded from the matter.
You Cannot Cancel the Sale
While you may be able to cancel the purchase from some professional dealers, this isn’t possible when you buy from a private seller. You simply pay and get the car, and that’s it. There’s no way to go back.
You Cannot Leave Bad Reviews
With a professional dealer, you have the opportunity to leave bad reviews if the car you buy isn’t what you expected. You cannot do this with private sellers.
How to Buy a Used Car
If you want to get a used car, here are some steps you should take:
Figure Out What You Can Afford
Considering used cars may require more attention due to possible issues that may arise, you don’t want to spend too much on one from the get-go. You’ll have to spend enough money on reparations, so you should at least try to save some money when buying your car.
Analyze your budget and consider how much you’re willing to spend. Also, if you take out a loan for the vehicle, you should make sure the car payment isn’t over 10% of the take-home pay. Check the options you have for cars and see if you find something that fits your budget.
Build a List of Used Cars for Sale
Don’t be too focused on one particular car brand. Look into more options and see if you find something you may be interested in. Ideally, you should build a list with different car targets. Your list should contain at least three cars that you can afford.
Check out the prices for each car and compare them. If you find a car model that got your attention, look for similar offers for the same car and see if the pricing is different. It’s always best to find the best deal.
Narrow Your Search to Local Cars
Finding a car near your local area will make it easier to get it home. If you’d rather buy from your area, check out a used car inventory page like the one from Edmunds. It will tell you if there’s something you should look into.
Check the Vehicles’ History
If you’re buying a car from a stranger, you should always check the history of the vehicle. It will tell you a lot of things that may influence your decision of purchasing it.
Contact the Sellers
When you find the car you want to buy, reach out to the seller. This allows you to establish a good relationship and talk more about the vehicle. If everything is okay, you can decide to meet up so you can test the car.
Test Drive the Cars
Testing the car is the best way to find out if it works alright and if it’s what you want. You can check the comfort of the seats, the amount of space, the tires, doors, brakes, air conditioning, indicators, brake lights, headlights, and everything of relevance.
Get the Car Inspected
If you’re almost convinced you want this car, you should ask a mechanic to inspect it first. A mechanic will know for sure if this is a good decision or not, and he may discover something that you didn’t notice.
Negotiate a Price
Try to negotiate a price with the seller. Make a decent offer if you’re aware of how much you can afford, and try talking to the seller respectfully.
Complete the Paperwork
If you’re buying the car, the seller should transfer the registration and title of the vehicle to you, and close the deal. Find out if there are any post-registration fees you will have to deal with. You also need to make sure you have insurance for the car.
Tips for Buying a Car from a Private Seller
Here are some tips to buy a used car safely:
Always Buy a Used Car with a Real Title
When you see a used car from a private seller sold for a price too good to be true, it may be because the seller has no title. Never buy a car without a title, because no title means no ownership.
Check the Vehicle’s Title for Liens
When a car title has liens, it means that there is a financial stake that a third party may have on it. You have to check if there is any lien, and that is possible by asking to see the title first.
Get a Car Insurance Policy Before Driving Off
Before you leave and enjoy your new car, you should get an insurance policy. Some states actually enforce it. Look for companies that offer insurances and compare the rates, and pick the one that is the best for you.
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Getting a car from a private seller can be risky, but you will not have issues if you take the right steps and precautions. Follow all the tips here to safely purchase a used vehicle.
Need a Loan? Get One in 3 Simple Steps
If you are considering applying for a personal loan, just follow these 3 simple steps.
Apply online for the loan amount you need. Submit the required documentation and provide your best possible application. Stronger applications get better loan offers.
If your application meets the eligibility criteria, the lender will contact you with regard to your application. Provide any additional information if required. Soon you’ll have your loan offer. Some lenders send a promissory note with your loan offer. Sign and return that note if you wish to accept the loan offer.
The loan then gets disbursed into your U.S. bank account within a reasonable number of days (some lenders will be as quick as 2-3 business days). Now you need to set up your repayment method. You can choose an autopay method online to help you pay on time every month.
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