Best Way To Buy A Used Car From Private Seller VERIFIED
Buying a used car from a private seller is a common practice for many consumers. It allows a buyer the opportunity to significantly expand their search options beyond dealerships to potentially find their ideal vehicle for a lower price. But buying directly from another individual has its advantages and disadvantages. There are several considerations when purchasing a car from a private seller.
best way to buy a used car from private seller
The main reason to buy a vehicle from a private seller over a dealership is affordability. The cost of a private vehicle is usually going to be lower because an individual seller typically does not have the same burden as a dealership to turn a profit on a sale. Private sellers are often motivated to sell at lower prices for personal reasons such as relocation or the need for cash. And private sellers are less likely to use high pressure sales tactics common to car dealers.
On the other hand, purchasing from a private seller assumes certain risks that some buyers are not comfortable with. Since dealerships are legitimate businesses, they are generally under a more formal obligation than a private seller to deliver a quality product. When buying from a private seller, there is less accountability if the vehicle were to experience mechanical problems after the sale. In addition, many dealerships can offer warranties which private sellers typically cannot. And from a convenience standpoint, a dealership typically handles the sometimes-complicated process of transferring title through the DMV.
There are several steps that should be taken when searching for a privately sold car. This starts with setting a budget and doing general research on the kind of vehicle you want, including current values. There are many online resources to help narrow the field and find the right make and model that best suits your needs.
Buying a car from a private party is different than buying from a dealership, but the basic steps are the same. You should first research the vehicle models that meet your needs and fit your budget, then search through local listings for the car you want. Once you find it, you can contact the seller and set up a test drive and inspection. You might have the vehicle inspected for mechanical issues or hidden damage with a private seller. You also won't have the option to purchase warranties or other extras.
Before looking at potential vehicles and buying a car from a private seller, a few things can make the process easier such as, nailing down your budget, making a list of must have features and finding state requirements for used cars.
When you buy a car from a private party, your best bet may be to pay for the vehicle yourself. You may be able to get a car loan for a private party sale, but it can be complicated. Also, the terms for private sale auto loans are typically less favorable. In either case, you'll need to figure out how much money you can put down on the car now and how much you're willing and able to borrow. That should give you an idea of your budget for your purchase.
Compare the value of each vehicle on your list to its market value from third parties like Kelley Blue Book. Get estimated values both for the condition as the seller describes it and at least one condition below, e.g., if a seller's description indicates "excellent" condition, get the value for excellent and very good conditions.
Before buying a used car from a private party, have a trusted mechanic check that the vehicle is in good working order. The mechanic may help you estimate the cost of any needed repairs. Use the VIN to get a vehicle history report and make sure it matches what the owner told you. If the owner doesn't want to give you the VIN, walk away from the sale. Learn more about what to look for when buying a used car.
But keep in mind that not all banks and credit unions offer this type of loan. Among those that do, rates can vary from lender to lender, so take some time to shop around to find the best rate and loan term for you.
Buying from an individual rather than from a car dealership has many advantages, though you'll want to do your homework before you buy. In this guide, we'll first talk through the advantages and disadvantages of buying from a private party, then walk step-by-step through the process of purchasing a private party pre-owned car.
When you buy and sell cars, there's quite a bit of personal information that needs to be shared. If, however, the seller demands a host of private information before letting you see the car, it should be a red flag. It may be an indication they are trying to steal your personal information, rather than selling you a car.
Most buyers of used cars should only consider buying a vehicle that has a clean title. You should never pay for a car unless the seller can immediately transfer the title to you. Unless you're fully aware of what you're getting into, you should avoid vehicles with branded titles. A branded title can indicate that the car was salvaged, flood-damaged, stolen and recovered, or used as a taxi or police car. If the seller says they do not have a title, they may be trying to hide the fact the car's original title is branded.
Don't allow a private seller to rush or bully you. Remember, you have the greatest power in the negotiation, as you can always walk away. Sometimes you'll have concrete reasons to do so; other times, you'll just have a notion that something's not right. Listen to your intuition.
Getting the money to the seller can be more complicated with private-party transactions, especially if they still owe on the vehicle or you're taking out a loan. If they still owe money, you or your lender should send your payment directly to the lender to pay off the loan and allow them to release the title. Any funds in excess of their loan balance can be paid directly to the seller.
Many private sellers ask people purchasing cars to pay in cash, which is fine as long as you do so in a safe place and document their receipt of the money with a bill of sale. Some may accept a cashier's check, though savvy sellers will ask to accompany you to your financial institution so they can verify it's not forged. Unfortunately, forgery of cashier's checks is a significant problem.
One of the most significant differences in purchasing a vehicle from a private seller versus a dealership is you'll have to work with the seller to ensure that all of the purchase, registration, financing, and title transfer paperwork is completed and filed.
Remember that you may find used cars for sale that are under recall and not yet repaired: It's not illegal for sellers to offer such cars. Check the vehicle identification number (VIN) at the National Highway Traffic Safety Administration's recall site so you'll know whether you're about to buy a car that you'll then need to take in for the free recall repair.
Use this list as a quick reference guide to point you toward the best place to buy a used car. Each used-car retailer has advantages and disadvantages, so depending on your priority (price? selection? warranty?), several outlets may fit your needs.
Buying a certified pre-owned (CPO) car is a convenient way to find a used car, SUV or truck in excellent condition. CPO vehicles, which are sold from dealerships of the same brand, go through extensive inspections and are reconditioned with factory parts. They also come with the best warranties. General Motors, for example, offers a one-year/12,000-mile bumper-to-bumper warranty and a five-year/100,000-mile powertrain warranty on all of its CPO cars. Our certified program comparison tool can help you see the differences in coverage. But just because they come with warranties doesn't mean they are exactly like new cars. Read "Certified Pre-Owned Cars: A Reality Check" to see what expectations you should have for a CPO car.
The coverage and convenience of a CPO car come at a price. CPO cars are typically the most expensive used-car option. Edmunds data indicates that consumers will pay on average a 6% to 8% premium for a 3-year-old CPO vehicle. One alternative might be to find a car from a private seller that is new enough to still be under warranty.
An independent dealership isn't associated with any particular automaker. The used-car selection can vary wildly, depending on whether you're shopping at a corner lot or a full-size dealership with a service department. Since the quality can also vary from one place to another, we recommend you run Google and Yelp searches and see what kind of reviews that dealer has. The Better Business Bureau is also a good resource.
We'd be remiss if we didn't toot our own horn to say that Edmunds also has used car listings from a wide range of dealerships and in both CPO and non-CPO varieties. Here you can search nationwide, get the price checked to see if it is high or a great deal and even see how long the car has been sitting on the dealer's lot. To be clear, Edmunds isn't selling the vehicles, but we can help you locate and get in touch with the dealership to see the vehicle in person and complete the sale.
CarMax is technically an independent used-car dealer. But with upwards of 200 stores nationwide, it is the largest used-car seller in the country. You'll find a wide array of late-model cars in a variety of body styles.
Buying from CarMax is a hassle-free, no-haggle process. All of its salespeople are paid on a flat-commission basis, which means they'll get paid the same amount whether they sell you a BMW or a Ford. This pay system allows salespeople to focus on helping customers find a car that best fits their needs and price range, said a CarMax spokesperson.
Shopping for a car in the private-party market offers a varied selection and a potential opportunity to get the best price, though you sacrifice the convenience of seeing many cars side by side, as you do at dealer lots. Negotiating with a private-party seller is usually much easier than negotiating with a salesperson at a dealership since most car owners haven't received formal sales training. There are many ways to find private-party vehicles. Some of the more popular places to go on the web are Autotrader, Craigslist, CarGurus and eBay Motors. 041b061a72