When it’s time to buy your next car, you’ve got a wide selection of automobiles to choose from, whether you want a sports car, an SUV, or a full-sized truck. You have the freedom to pick your favorite color and whether you want to buy new or used.
Buying a used car can save you big, possibly several thousands of dollars. A previously owned vehicle might be in nearly new condition yet cost more than $15,000 less than it did when it was first sold
nowadays you can search and choose from sellers across the country without waiting on dealer inventory from the comfort of your home.
What if you find just the car you want and a private seller lists it? What are the pros and cons of a private sale, and what should you lookout for?
Let’s look at the ins and outs of buying a car from a private seller in detail.
Should you buy a new or a used car?
In 2021, with the average new vehicle costing over $40,000, buying one is a significant financial decision. While you may be attracted to a particular new vehicle, paying for it is a whole other story.
Conversely, in 2021, the average cost for a used car is about $24,000, offering a substantially lower price compared to new vehicles. With recently made vehicles featuring exceptional build quality aided by the latest manufacturing methods, buying used and saving thousands of dollars makes good financial sense.
Even though a new vehicle comes with a factory warranty, when you buy used, you have the choice to buy an extended warranty, which offers many of the same benefits. Sometimes extended warranties even come with additional perks like roadside assistance or rental car reimbursement. If you also buy a pre-purchase inspection or PPI, the extra layer of safety makes buying a used vehicle a no brainer.
How to buy a car from a private party?
Before locating the make and model you desire, determining your budget keeps you within a sensible financial framework.
The next step is choosing the vehicle you want. With so many great cars available on the used market, doing the research helps you narrow down the car to fit your needs. Once you’ve decided on the specific make and model for you, it is a matter on getting on a couple of reseller app like Offerup or Facebook marketplace to find the right one.
After you’ve found a few potential candidates, making sure they are fairly priced ensures sellers don’t take advantage of you. Several online resources like Kelley Blue Book (KBB) and the National Auto Dealers Association (NADA), have used car pricing guides that provide market values based on a vehicle’s condition, options, and mileage.
Once you pick a vehicle that you are interested in, we highly recommend getting a Carfax or an Autocheck report which tells you a little bit about the history of the vehicle and if it had been in any accidents or flood damage.
The following step is meeting with the sellers in a public place to make sure they are safe and test driving the car to get a feel for it and make sure it matches the description online.
If the vehicle has a clean history, drives well and you are satisfied with it over all, but still unsure if it is the right vehicle, we recommend getting a 160 point pre-purchase inspection by one of our experts for a little more peace of mind.
The last step in this journey would be to transfer title, get a new registration under your name and pay the sales tax required by your state.