Going out to buy a used car directly from the owner is a little more grind. But, let me make it easy for you with these tips to buy a used car from a private seller.
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Every single thing in the World has two aspects: a bad and a good. Buying a car privately from the owner will sound like a great deal because you may save a lot but the process of buying is a little complicated.
The reward can be as big as the risk. But you can minimize the risk by using the tips that I am gonna present to you shortly. Not to forget, being heedful while implementing these tips can ignite the chances of the reward.
So, join me, and let’s explore what you can do effectively to get a good deal for your private purchase of a second-hand car.
The Pros of Buying a Car Directly from Owner
There are certainly a lot of benefits to buying a used car from a private seller that overpowers the downsides. Here are some that may have convinced you to use this privilege:
- May get a real bargain
- Multiple options to choose from
- Negotiations are flexible and are on the table
- Tax exemptions or lower taxes in some states
- More control over the schedule and venue of seeing the car
The pros are great, yeah, but since there are little or no legal protections, you are always at risk if you’re planning to get a car from a total stranger.
If you don’t know what to look for in the car and are unaware of the red flags in a car, then you may jeopardize the deal that you once thought a great deal.
But let’s just have you skip the fuss.
Tips for Buying a Used Car from a Private Seller
Find Cars, Not Scrap
People want to sell their cars at the best price possible. You can’t really stop their tendency to add misleading information in the description of the car. What you can do is identify the stuff that is shady for the make, model, and year of the car. For those in difficult situations, some services specialize in buying junk cars without a title in Los Angeles, making it easier to get cash for vehicles even when the paperwork is incomplete.
To identify, let your common sense play. A car that is advertised by its manufacturer to do up to 33 mpg can’t supposedly do 40 mpg (as described by the owner) with the stock engine and stuff. So, it’s usually a red flag.
I said ‘usually,’ but to curb out the correct specs, calling the owner is the right way to go. And you can ask them the following questions:
- Did the car ever receive any major repairs?
- Has it been in a collision?
- If the answer to the above question is yes, then ask ‘What was the extent of damage?’
- Is there any loan that is yet to be paid for the car?
- If the answer to the above is yes then ask ‘Who is the lender?’
- Does the vehicle have any transferrable warranty left?
Also, you can explore Doug DeMuro on YouTube. The guy may have already intensely reviewed the car you are looking for. Make sure to watch the videos comprehensively in high resolution via your mobile, cable, or satellite internet.
Don’t Forget to Check the VHR (Vehicle History Report)
It’d be great if the owners themselves would be providing the VHR. If not, then it’s a must. You shouldn’t skip it at all, because it provides information like previous accidents, major repairs, actual odometer readings, and a lot more.
You can purchase the history report by using the vehicle identification number, which you can ask from the owner. Use this number at AutoCheck or Carfax to buy the VHR.
A VHR unveils the reality of the car that you may purchase that the owner may be hiding. Identifying the red flags that we talked about will become easy with this report. You can ask the owner for this discrepancy and if the explanation doesn’t satisfy you then moving on is a better option.
Not to forget, the vehicle identification number can unlock information about any crimes or theft that are associated with the vehicle at the National Insurance Crime Bureau.
Remember, these are the steps that might be sucking up a lot of your time but in the long run, they will prove themselves to be a lot more valuable and can save you from the big bulls of the troubles like complete vehicle seizure.
Get a Car that is Fairly Priced
How do you know if the car is at a reasonable price? Make comparisons and the platforms that offer comparisons to your buddy.
Platforms like Kelley Blue Book and Edmunds offer an estimated price for the details of the car that you are looking for. A filter to remember here is that you gotta check the prices according to the private-party value.
If the owner is asking for a higher value, then consider it as an opportunity to flex your negotiation skills. This is one of the best things for getting a car privately. Also, you can easily skip the ad-ons that usually accompany the car deal from the dealers.
See a Private Car Effectively
If you liked the car on your phone or laptop, everything seems fine and now you want to see the car in person then follow these tips to make it effective:
Get the Car Reviewed by an Expert
An expert’s call is worth a thousand bucks. So, if you have a friend or a family member whom you can term as an automobile expert then take them with you to inspect the car completely.
Although the VHR can state the problems that the vehicle may have occurred, yet, it does not always cover 100%.
If you don’t have any experts in your circle then take a mechanic with you or meet at a place of your mechanic’s business. In this way you can kill two birds with one stone: save more time and inspect your vehicle.
Test Ride the Vehicle
Sometimes, visually, everything seems fine about the vehicle but the issues are revealed when the car is driven.
I should mention here that a test ride may accompany security issues as you can’t trust any stranger. To decrease security concerns, what you can do is take a photograph of the seller’s driver’s license or ID for a photo and send it to a friend or family who knows your location.
Now when the car is driving nice and good then this may be the time to talk about the price and negotiate.
Set the Meeting in a Public Place
Another point that is key to ensure your safety is to ask the seller to meet in a public place like a nearby McDonald’s or a parking of retail like Walmart.
Also, you should take someone with you. If you can’t then at least let your friend or a family member know where you are heading.
What to Do And What Not to Do to Pay for the Purchase?
OK. So, here’s the thing. It’s another tricky part of buying a car from a private seller. But if you know what to do, then it won’t be that tricky.
Taking a finance expert here is always recommended if you don’t want to go down the road all alone. But if you don’t have one, then I got you covered.
The single most important rule here is that do not pay until the car is yours. By yours, I mean that the car keys are in your pocket and the title is transferred to you.
How to Pay with a Private-Party Auto Loan?
You have to dig in deep to find a lender that offers loans for vehicles purchased privately. I am telling you, there aren’t many. But if you find one, it’s the same as any other auto-loan but the rates are higher than others.
Also, make sure that you are providing the details to the lender of the exact car that you are ready to purchase.
How to Pay with a Personal Loan?
The case is the same here. You will find a lender but then again, the rates would be higher.
Lenders don’t want to finance the high mileage and cheap vehicles because it’s less profit for them and more hassle.
How to Pay with a Cash or Check?
Escrow can be of great help here. You can add the money to be paid to your Escrow account and set conditions for releasing it. Once the car is transferred to your name then the money will be released.
If you don’t want to use Escrow then you can through cash or a cashier’s check. Some sellers may not accept the check for the chance for it to be forged or the risk of fraud.
Whatever method you choose just make sure to get a bill of sale for the sake of evidence that the payment has been made at the decided price of purchase.
Summing Up
Making a purchase directly from the owner is for sure a challenging task but with diligence, you can save more bucks. After making the purchase you may have to pay some of the sales tax and other fees for the vehicle registration.
And last but not least, make sure your car is insured because when it’s on the road, it’s always at risk. Get the complete details for the coverage from the insurance company.
