How to Buy a Used Car from a Private Seller

When buying a used car, you may want to consider looking for a private seller rather than an established dealership. Individuals looking to sell a used card are less likely to apply high-pressure sales tactics, and may be willing to cut a more equitable deal. One the other hand, private sellers are less likely to offer warranties and service plans. Once you buy the car, you're stuck with any existing problems. Make sure you know what to look for before purchasing a used car from a private seller.

Instructions

1

Check the Blue Book value for the used car you want to buy (see Resources). It should give you a sense of how much the vehicle is worth based on make, model and year. A used car will probably be offered for somewhat less than the Blue Book value.

2

Compare the seller's asking price with prices for similar vehicles in your area by using Craigslist or a similar website. Is the seller offering a comparable price? If the price is significantly lower, inquire about any problems with the vehicle.

3

Ask the owner about the car's history. Has it been repaired after an accident? How long has he or she owned the car? Why is the vehicle being sold? Where has the car primarily been driven (city, highway, off-road)? The owner should be open and forthright about such questions, and not give evasive or noncommittal answers.

4

Give the car a thorough visual inspection. Look for leaking fluids, worn tires and signs of rust or accident damage. Check the VIN numbers (located on the dashboard and inside the doors) to make sure they are the same. If they aren't, the car might have been stolen. Examine the car for signs that the owner may be trying to hide damage, such as a new paint job or obvious work on the body.

5

Take the car for a test drive. Examine its steering, acceleration and overall handling. Listen for any knocks in the engine, rattling noises or similar signs of distress. When you're done with the drive, give it another quick once-over to look for any leaking fluids or similar problems.

6

Have the car examined by a professional mechanic. Call your local dealership and ask them to take a look, or consult a certified mechanic in your area to give the car an inspection. The mechanic should be objective and neutral, agreed upon by both the buyer and the seller. Have the mechanic provide a written estimate of any expected repairs, with copies for both you and the seller.

7

Contact a credit union or reputable bank and ask to set up a loan or a bank draft. Even if you have the money to pay for the car up front, it's preferable to use a bank draft. That way, you can halt the transfer of funds if the car turns out to be stolen.

8

Prepare a written bill of sale for the seller to sign during the final transaction. The document should include all of the seller's contact information--name, address and telephone number--along with the make, model, license number and VIN number of the car.

9

Make sure you get the pink slip and registration from the seller. A legitimate car owner will have no problem handing over these materials once the sale is complete. Your bank or credit union may require additional paperwork.