Buying a Used Car from a Private Seller? Here’s What You Need to Know

If you’d like to get behind the wheel without spending much, exploring the used car market is a good idea. You can buy a used car from a private seller or a dealer to save money, but keep in mind that it comes with risks.

What to Watch Out for When Buying From a Private Seller

There’s nothing wrong with buying a used car from an individual. The transaction should flow smoothly as long as you know how to protect your rights as a buyer and what to be wary of, which includes the following:

Dishonest Sellers

One of the disadvantages of buying from a private seller is that you don’t really know who you’re transacting with.

It’s easy to research a dealership’s reputation, but the same doesn’t apply to private individuals. If you’re going to meet for an inspection or a test drive, make sure that you meet in a public place. You can also meet them with someone you trust, ideally a person with in-depth automotive knowledge who can spot scams and inaccurate info during the meeting.

Also, some private sellers are dealers in disguise. They may post like they’re a private individual online, using deceptive tactics to lure buyers. If you feel anything is off, you always have a choice to walk away.

Overpricing

Many owners tend to price their vehicles higher than their market value. Some base their price on what they spent buying the vehicle, while others raise the tag because of sentimental reasons.

Hidden Damages

You won’t get any warranty when buying from a private seller. Plus, you won’t be protected by any state or federal laws. Some sellers take advantage of these conditions by hiding their vehicle’s faults.

If you’re buying a used car from an individual, remember that you’re buying it as it is. So make sure it’s roadworthy and doesn’t have any significant issues before agreeing with anything.

Mishaps in Title Transfer

If you buy from dealers, they’d be the ones to do all the paperwork for you. However, if you’re buying from an individual, you’re responsible for everything.

Make sure you know the ins and outs of title transfer and vehicle registration before buying from a private seller. Any mishaps in this process can lead to ownership problems down the line.

Title transfer requirements can vary per state, so make sure to check with your local municipal office or their website for the list of requirements. Do the same for car registration and insurance.

Things to Do Before Striking a Deal With a Private Seller

Here are some things you might want to do before buying from the seller:

Ask Questions

You have to know what questions to ask. Find out if the car was ever in any accident and if it went through any major repairs. Also, determine whether the vehicle has an existing loan. The answers to these queries will help you avoid issues and get you the best value for your money.

Research the Car’s Selling Price

Assess if the vehicle is priced fair. Sites like CarMax, Carvana, Kelley Blue Book, and Edmunds have accurate information on pricing. Compare the price of the vehicle you’d like to buy to those posted on these sites.

Inspect the Vehicle

Inspect the vehicle’s interior and exterior for any signs of wear to identify potential problems. For example, a worn-out gas pedal on a vehicle with low mileage is a red flag that could indicate odometer tampering. So think twice before proceeding with the deal.

If it’s possible, do the inspection during the day. Aside from safety reasons, you’ll be able to see the vehicle more clearly during the day. You can also bring a trusted mechanic with you.

Get a Vehicle History Report or a VIN Check

History reports contain helpful details like odometer readings, a list of the vehicle’s previous owners, title history, and previous repairs.

If the seller can’t give one, you can request the report yourself. Ask the seller for the vehicle’s VIN number, and pay sites like Carfax or AutoCheck for a history report.  You can also go to the National Insurance Crime Bureau to know if the vehicle was ever stolen. You could also find out if the vehicle was ever totaled in the past.

When to Buy a Used Car from a Private Seller

You have the prerogative to choose if you’d like to buy a used car from a dealer or a private seller. However, there are some instances when it’s better to buy from a private individual.

For example, if you’re looking for a specific make and model, you might not find it in a dealership, especially if it’s an older unit. Dealers usually provide limited options when it comes to used cars.

If you’re on a tight budget, exploring cars sold by private sellers is also a good option. Private sellers are more willing to negotiate prices than dealerships. Also, they won’t ask you to pay for pricey insurance and maintenance add-ons.

Can You Buy a Used Car With an Existing Loan?

While exploring the used car market, it isn’t uncommon to encounter sellers who put their vehicles up for sale even if they still have an unpaid auto loan balance.

You can buy a used car with an existing loan. However, you’ll have to get the payoff amount from their lender to transfer the loan to you. You must also have to get the title from the seller’s lender.

Where to Buy Used Cars from Private Sellers

You can find many used cars for sale on Facebook Marketplace, Craigslist, and AutoTrander. Some private sellers also post classified ads.

People have different opinions about the best place to buy used cars. If you’re worried about transacting with strangers, you can ask your family or friends if they’re selling a vehicle. You’d minimize any doubts if you know who the seller is.

Having second thoughts about buying from a private seller? You don’t have to worry that much. As long as you know the details on how to buy used cars from private sellers, you should encounter minimal obstacles during the transaction.