Buying a car from a private seller is not for everybody. You’re essentially taking them at their word that everything is good under the hood. But if your neighbor is a mechanic and selling his babied import, it may be an option.
While it’s definitely less expensive to buy a comparable car from a private seller versus a dealer, there are some tradeoffs. Legally, there’s less protection for the buyer if something goes wrong with the car. And some of the savings come at the cost of certified mechanics servicing the car before putting it on the lot.
Below are some tips for buying from a private seller.
Seven Steps for Purchasing a Used Car from a Private Seller
Set Your Budget
Decide how much you can afford before you start shopping. Since you are buying from a private seller, secure financing ahead of time and compare loan rates from banks and credit unions. Research the car’s market value and remember to include taxes, title fees, and registration costs in your total budget.
Search for Cars
Look for vehicles listed by private sellers on reputable online platforms. Filter by make, model, price, and distance, then contact sellers to ask questions and schedule a time to see the car.
Request a Vehicle History Report
Ask the seller for the vehicle’s VIN and request a history report if one is not already provided. Review it carefully for accidents, title issues, recalls, liens, and service history, and confirm the VIN matches the car.
Meet the Seller and Inspect the Car
Meet the seller in person, test drive the vehicle, and make sure it meets your expectations. Ask key questions, such as how many owners the car has had, whether there are any liens, if it has been in any accidents, and why the seller is selling it.
Have the Car Professionally Inspected
Before committing, have a trusted mechanic inspect the vehicle. If the seller is far away, consider a mobile inspection service. The cost is worth peace of mind and can also help if you are applying for financing.
Complete the Sale
Review your state’s requirements for private car sales, such as having the vehicle title notarized. Confirm any required emissions tests or odometer disclosures are managed, and make sure you receive a signed bill of sale with all key details, including the VIN and purchase price.
Register and Insure the Vehicle
To legally drive the car, register it and obtain insurance that meets your state’s minimum requirements. You may need proof of insurance, the title, and inspection or emissions documentation.
Get an auto insurance quote.
How much vehicle can I afford?
Additional Car Buying Tips
How to Negotiate Car Price
What You Should Know Before Buying a Car
