Steps to Buying a Car From a Private Party

If you are looking to purchase a new-to-you used car, buying it from a private party can save you a fairly significant amount of money over shopping at a car dealership. Buying a used car from a private party can have downsides, however. For example, private parties typically sell cars "as is," so you will have no way to return the car or get your money back if there is a problem. It is important to thoroughly investigate the vehicle you intend to purchase before you buy from a private party.

Instructions

1

Have cash in hand. Private party sellers will probably not be willing to provide any kind of financing for your purchase and oftentimes they will not wait for you to get the money together. Having the money upfront when you approach a private party about purchasing a vehicle can ensure a sale, and may also give you more bargaining power.

2

Locate cars in your price range that meet the specifications you desire. You can do this by checking classified ads, browsing your local newspaper and even paying attention to "For Sale" signs you may see on vehicles in your neighborhood. After finding your potential purchase, research the car's value to determine whether the asking price is fair.

3

Contact the seller and be prepared with questions to ask. If you are seriously considering purchasing the vehicle, ask for the Vehicle Identification Number as well as more general questions. Use the VIN to order a vehicle history report on the car to find out whether there are any serious accidents or damage in the vehicle's history.

4

Schedule an appointment to test drive the vehicle. Test drive the car for at least 30 minutes. A quick spin around the block may give you some idea of how the vehicle runs, but you won't have a reliable impression about the car's shape until you spend more time behind the wheel. Drive in multiple gears and speeds, always obeying local limits. Make sure the car does not make any strange noises or overheat while you are driving it, as these could signal the need for costly repairs.

5

Take the car to a mechanic you trust and have it thoroughly evaluated. Have the mechanic give you an estimate for the cost of any repairs the car needs.

6

Negotiate the price with the seller. Many times private parties are willing to, and even expect to, negotiate. Ask the seller to factor in the cost of any repairs the mechanic gave you in your estimate. Once you have settled on a price, pay the seller. The seller should give you a signed bill of sale as well as the title to the car.