How to buy a used car from a private seller

Tips to buy a used car from a private seller

You can often get a better deal if you buy a used car from a private seller. But the process is much different than buying from a dealer and your expectations should be as well. Here are a few pros and cons of buying from a private seller:

The Pros: Reasons to buy a used car from a private seller

• Most used cars at the dealer are from an auction— So they can’t answer questions about the vehicle’s history. But you can ask the private seller a whole host of questions (see below)

• Private sellers usually sell because they’re trying to get more money than the dealer would offer on a trade-in. So you’ll often save money by buying from a private seller  can often pay somewhere between trade-in price and full retail.

• Private sellers may have all the service records to show you.

Cons to buying a used car from a private seller

• Unlike a dealer with a reputation to worry about, a private seller doesn’t care much about whether you’re happy with the transaction and probably won’t do anything for you after the sale if you’re unhappy.

• Dealers often do a full detail-prep on the vehicle to make it look nice. Private seller sellers may vacuum the seats and floor mats, but you can expect the engine to look pretty dirty.

• Private sellers sometimes unload lemon vehicles and lie about their condition (but used car dealers lie, too).

• It’s a bit harder to complete the title transfer with a private seller. A dealer does all the paperwork for you, while buying from a private seller often means completing the transaction at the local DMV.

Do your homework before buying a used car from a private seller

You can’t possibly negotiate the price if you don’t know what comparable vehicles are selling for in your area. Go to NADA.com, KBB.com, TrueCar.com, and Edmunds.com and search for your desired vehicle. Those sites will tell you what people in your area are paying for comparable cars.

What to offer when you buy a used car from a private seller?

Private seller sellers often list their vehicles for full retail price. They’re delusional. Nobody is going to pay them the full price. You should never pay a private seller more than half the difference between full retail and trade-in price. That way, you and the seller come out ahead; they get more than they would if they traded it in, and you save some money. Here’s a list of questions to ask when buying a used car from a private seller.

Here are the phone questions to ask a private seller before you make an appointment to see the car in person

How long have you owned the vehicle, and how many miles have you put on it?

What you really want to know is if their answers to your questions make sense. If they’ve owned the vehicle for a while, they’ll know its history. But if they are flipping the vehicle, they won’t have the answers, or they’ll plain out lie. Don’t buy from flippers. You almost always get burned.

Ask if they are a dealer

Dealers often masquerade as private seller sellers. A legitimate dealer will tell you immediately because you must visit their business to see the vehicle. But shady fly-by-night dealers who pretend to be private seller sellers often buy their vehicles from low-end auction salvage operators. Stay away from these sellers. They fix up the wrecks just enough to make them run and then dump them on unsuspecting buyers.

Has the used car been in an accident while they’ve owned it? Where was it repaired, and is the work guaranteed?

If the seller had an accident, that alone isn’t a reason not to buy. Lots of people have fender benders. You want to know whether the accident caused major body damage and whether the repairs were done by a reputable shop or by the current owner’s brother-in-law, who moonlights by doing bodywork in his garage. If a reputable body shop repaired the damage, you’ll know it was done right, especially if there’s a warranty.

Why are you selling it?

This is important. Selling a used car because the seller is buying a newer car is a legitimate reason. In times of Covid, selling because they can’t afford to keep an additional car is also a valid reason. Working from home has caused a lot of families to get rid of the extra vehicle. If the seller gives you a different reason, be suspicious.

What repairs and maintenance have you done in the last year, and do you have receipts?

Not everybody keeps receipts. If the seller doesn’t have them, ask where they had the work done. The whole point here is to determine if the seller has maintained the vehicles.

Do all the accessories work?

Ask if they’ve checked the power seats, heated seats, AC, heat, rear defroster, power windows, power mirrors, and radio/Bluetooth. You need to know this going into the transaction. Power seats and AC repairs can be very expensive. Radios are cheap to replace but replacement factory navigation systems cost a small fortune to fix.

Does this vehicle have a clean title? Has the vehicle ever had a rebuilt or salvage title?

Generally, you should avoid vehicles with a salvage or rebuilt title. They’re nothing but trouble, and you should know this before deciding to view the car in person.

Is there a lienholder on the title, and are there multiple names on the title?

This is important because the seller will have to pay off the lien and provide a lien waiver before they can transfer the title to you. If multiple people (usually husband and wife) are on the title, both parties must sign off on the title before it can be transferred. That’s easy if the husband and wife are on good terms; it’s not so easy if they’re not speaking to one another and you get caught in the middle of a domestic dispute.

Does it have current smog?

If your state requires smog testing, having a current smog certificate is important.

Will the seller agree to let you get a pre-purchase inspection at a shop of your choice?

In most cases, sellers hesitate on the pre-purchase inspection because they’re worried you’ll come back with a laundry list of “recommended” repairs and then want to renegotiate the price. But there’s a way around this. Once you negotiate the price, tell the seller you’ll buy the car contingent on a pre-purchase inspection that doesn’t come up with more than $500 in recommended repairs.

Items to check when you buy a used car from a private seller

• Examine the exterior— Check for dents, rust, and signs of previous body repairs.
• Check the tires— Look for any sidewall bulges. Any bulge on the sidewall is a sign of significant tire damage, and the tire must be replaced immediately. Use a tire tread depth gauge to measure the remaining tread depth. You’ll need new tires soon if it’s less than 4/32″. Check the age of the tires. See this post for more details on how to check tires.
• Check the interior— Check the condition of the upholstery. Operate the power seats, each power window, and each seat heater. Operate the AC and heater at all fan speeds. Operate the headlights, brakes, hazard lights, and turn signals and check outside to make sure they all illuminate.
• Test drive the vehicle— Make sure it idles smoothly when cold and once it’s warmed up. Listen for brake noise and brake pedal pulsation when applying the brakes, especially at highway speed. Make sure it engages in gear smoothly and shifts smoothly. Monitor the steering to make sure it’s responsive and doesn’t wander.
• Examine the title— Make sure the lien isn’t a salvage title. Check the date the seller purchased the vehicle and compare it to what they told you earlier. Check the mileage. If it appears that the seller has only owned the car for a short time, ask them why they’re selling. This is the sign of a car flipper. If a lien holder is listed on the title, ask the seller if the lien has been paid off and if they have a lien release from the lien holder. If not, ask how they intend to clear the lien before you buy the vehicle.

How to handle the pre-purchase inspection

Before you buy a used car from a private seller, always get a pre-purchase inspection from a trusted shop. No matter how many vehicles you’ve purchased in the past unless they’ve been inspected below and had a full computer scan, you can’t possibly know their condition.

Make arrangements at the shop of your choice and have the seller drop the car off and pick it up when the inspection is complete.

Based on the inspection report, decide whether you want to renegotiate the price, pull out of the sale, or pay for the repairs yourself.

How to close the deal

The best way to complete the transaction is usually at a local DMV office. If there are any problems with the title, lien waiver, or signatures, you’ll find out before you hand over the cash.

©, 2020 Rick Muscoplat