6 Expert Tips for Buying Used Cars from Private Sellers

Checking under the hood of a potential new vehicle

While the private-party auto market can feel intimidating, it can also be a valuable space for obtaining reasonably priced, good-conditioned vehicles. Used car dealerships are often predatory, hiding maintenance issues and throwing in hidden financing fees that can cost tens of thousands of dollars. This article will help you skip the mind games of the modern salesman by walking you through 6 key pointers for buying used cars from private party sellers.

1. Do Your Research Beforehand 

Determine the make and model for which you're interested in buying and research the average price points on websites like Kelly Blue Book, Facebook Marketplace, and AutoTrader. Ensure you're looking at vehicles in your price range. Next, investigate the problems commonly seen in those vehicles so you and your mechanic can look for them upon inspection.

(For example, 2015 Subaru WRXs are known for having bad clutch plates. So, you'll want to pay extra attention to how the clutch feels when test driving.)

2. Check the Vehicle VIN on Carfax

Once you find a specific vehicle you like, search the VIN in Carfax. This will allow you to see if the car was in any accidents, if it had recalls, or if the title was salvaged. This is an incredibly important part of the private party process, as many sellers will not be honest regarding the condition and history of the vehicle. 

3. Meet in a Public Place

Safety first, always! We've all heard Craigslist horror stories. Taking the precautions of meeting in a public place and during the daytime can minimize your chances of becoming a victim of a crime. It's also advisable to bring a trusted friend, as they can be extra deterrence from possible criminal activity. 

4. Get an Inspection & Test Drive Before Negotiating Price

Unless you are well-versed under the hood, hire a mechanic to inspect the vehicle for you. Private party sellers have been known for trying to pass off their lemons to unsuspecting buyers. By getting the vehicle inspected, you can prevent purchasing a car with issues, or negotiate a lower price on the spot. (In the case of negotiation, a mechanic can often pay for itself by getting you that lower price point.) 

5. Pay with a Loan or Cash

While paying cash to own the car outright is preferable, it's not always feasible. Thus, you can also apply for an auto loan with your bank. Once approved, the bank will send you a check to pay the seller. Just be sure to send the title to the bank, as they'll need it for their collateral.

Check out this article to read about Building Credit

6. Complete Registration Paperwork and Obtain a Bill of Sale 

Once the transaction is complete, it's your responsibility to get the updated registration paperwork to your state's DMV or tax collector. The paperwork required varies depending on your state. Some states, like California, also require a Bill of Sale, which is good to obtain for your records regardless. 

You can find quality vehicles at good prices on the private market with just a little time and effort. Don't let a dealership bully you into high prices and models you aren't even interested in when your dream car is selling down the street for half the price. After utilizing these steps, purchasing a vehicle from a private seller can be both empowering and rewarding.