How to Purchase a Car Through an Independent Owner

You have decided to skip the dealer and purchase a vehicle directly from a private owner. There are several things you will need to know. You have to make sure the automobile is mechanically sound, negotiate a fair deal, pay taxes, and have the car registered to be on the road. Doing your homework and creating a plan of action in advance may save you future headaches.

Instructions

Before You Look

1

If you don't intend to pay cash for the car, get your financing settled first. You want to go in knowing how much money you are able to spend. A loan officer at your local bank can help you with this.

2

In order to prevent any surprises, determine how much it's going to cost you to own this car. Not only will you pay the purchase price, but you'll also be responsible for sales tax, registration, licensing fees, and auto insurance. Factor in routine maintenance, like oil changes and new filters. You will periodically have to change tires, bulbs, wiper blades, batteries, and anything else with limited life expectancy. Don't forget the cost of fuel and any possible parking charges.

3

Find a friend or relative to accompany you as you look at the vehicle. Her job is to be your voice of reason. If you dreamed of driving a Mustang as a teenager and you're looking at one now, it may help to have a friendly voice reminding you to use common sense.

4

Take a look at the area you're going into to see the vehicle. If it's a neighborhood known for violence and crime, you may want to reconsider that particular car. There are more cars on the market.

Look for Red Flags

5

Look at the title. If the owner does not have the title, beware. He may not own the car. Don't accept that the title has been "lost" or "stolen." If that were true he would have had the opportunity to request a new title prior to putting the car on the market.

6

Walk away if the title is in someone else's name. The person you're dealing with does not own the vehicle and cannot legally sell it to you.

7

Be wary if the current owner misrepresents the car's condition. If he's lying to you about the things you can see to be false, how many more problems exist beneath the hood?

8

Get a free vehicle history report through websites such as is-it-a-lemon.com. This report will tell you about any reported accidents the car has been involved in.

A Tentative Deal Has Been Struck

9

Take the car to a mechanic you have preselected and have it checked for any problems or potential problems. Use your own mechanic rather than someone the seller recommends.

10

Write up a bill of sale that states make, model, year, vehicle identification number (VIN), and current mileage. Include the sales price, date of sale, buyer and seller's names, and both signatures.

11

Have the seller sign the title over to you. Take it to your state Department of Motor Vehicles (DMV) office to have it registered, get a new title, and pay your sales tax.