Seven Tips for Buying a Car From a Private Seller
March 07, 2014
When
you buy a used car from a dealer, you can't help feeling like he has
the upper hand. Auto dealers know their business, and you can bet
they're going to make a profit. It's tempting, therefore, to buy a car
from a private seller instead — no overhead, no taxes, no hassle. But is
it safe? Here are some tips to help you successfully buy a used car
from a private seller.
Tip #1: Don't rush when you're buying a used car.
The more time you spend looking, the better your sense of the market
value of a particular make and model of vehicle. First, read our
Car Buying Guide
to learn what sort of things you need to keep an eye out for. Once you're ready, hit the market.
Craigslist is a common place for private sellers to advertise used
cars, but it's by no means the only place to find your dream ride. Sites
such as
AutoTrader.com
feature online tools to search and compare vehicle listings from both dealers and individual sellers. eBay Motors offers
Vehicle Purchase Protection
, which gives buyers up to $50,000 of protection against certain types of fraud.
Tip #2: Research the car's history.
Unfortunately, you can't trust the seller's assurances that the car
was coddled all its life. Buyers often discover — too late — that a
vehicle has been damaged by flood, patched up after a major collision or
even salvaged from a junkyard.
Get a vehicle history report from a company such as
Carfax
that includes details on past ownership, service and mileage. Carfax
will even estimate the car's value, based on its assessed condition.
Tip #3: Pay for a mechanic's assessment.
If you've found a car you love that looks new and drives smoothly, it
may seem like too much trouble to get your mechanic to examine it.
Don't skip this step! Ask the seller to bring the vehicle to your (not
his) trusted mechanic for a thorough inspection. Or, you can use a
mobile car inspection service, like
Carchex
. Mobile inspection can be particularly valuable if you're planning to buy a car from a distant seller, sight unseen. Learn
how to pick a good mechanic
.
Tip #4: Dont take a chance on the title.
Sometimes you may see a vehicle listed for far less than its Blue
Book value, because the seller doesn't have the title. This is not a
bargain you should make, because having a title is vital. A title is a
legal document that establishes the owner of a vehicle. Without it, you
don't technically own the car — even if the keys are in your pocket.
States do permit vehicle owners to apply for a replacement title if
the original is lost or destroyed. Don't take on this responsibility
yourself; let the seller obtain a new title before the car is sold.
Otherwise, you may find yourself the owner of a salvaged or stolen
car.
Tip #5: Check for liens.
A lien on a vehicle title means that a third party has a financial
stake in it. Most often, the lien is held by the originator of the car
loan until the loan's paid off, but a vehicle lien may also be held by
other creditors. The lien must be paid before the title can be
transferred.
When you're buying a used car from a private seller, there are a few
different ways to research liens. Ask to see the title, which should
state clearly if there's a lien attached. You can also get the Vehicle
Identification Number (VIN) and call your local department of motor
vehicles to find out if there are any outstanding liens. Don't trust the
seller to give you the VIN; copy it down yourself.
Tip #6: Use an escrow service.
An escrow service can benefit both seller and buyer when you're
purchasing a used vehicle from a private party. How does escrow work?
The company will hold the buyer's funds in reserve until he or she gets
the vehicle and title. Escrow also ensures the buyer has real money to
spend and isn't trying to scam the seller. There is a fee for escrow
services, but you may be able to split it with the seller.
The nation largest consignment service for used vehicles, OAKBEND Marina Evolvere, is an excellent alternative if you are looking to consign your car. Since it's foundation in 2009, the company has 4 locations in United States and 4 more in Canada and United Kingdom. The company sells almost any type of vehicle, from cars to large boats or recreational vehicles.
For more information about how OAKBEND Marina Evolvere works, visit the company's
website
.
Tip #7: Obey local laws governing car sales.
Purchasing a used car isn't as simple as buying a coffee table. Your
state laws may require the seller to get an emissions test for the
vehicle and/or an odometer disclosure statement form. A handful of
states require the title to be notarized when it's transferred. In other
states, you need a bill of sale. Your local DMV can give you the list
of requirements.
Car Buying Guide
Looking to buy a car? We're here to help. Our
Car Buying Guide
will help you compare all aspects of the car buying process - price, performance, reliability and more.