by Andrew Rohrlich
Private sales have become relatively common due to the easy accessibility of online ad listing sites. Facebook Marketplace, eBay motors, and Craigslist are the most popular sites for private sellers to list their cars. But when you're part of a private sale, you must be extra vigilant to ensure you're getting a good car. You don't have the safety net of buying from a dealership. Instead, you must check for a few things yourself. The question is, what to check for when buying a used car? This comprehensive guide will tell you all you need to know.
Benefits of Buying a Used Car From a Private Seller
When buying a vehicle from a private seller, you may be able to get a great deal on your preferred ride. Buying from an individual often means you get a lower price than you would from a dealer. Private sellers are also open to negotiations. If you have good bargaining skills, you may be able to lower the price of the car even further.
Another advantage of buying a vehicle that is for sale by owner is that you can test drive the vehicle before purchasing it. It can help you decide if the ride is right for you.
You also get a first-hand account of the car's maintenance and repair history. The seller can tell you when they have serviced the vehicle. Since they have driven the car, they know the quirks and habits of the vehicle, which can help you make a more informed decision.
Things To Check While Buying a Used Car
Odometer reading, vehicle history report, repair history, insurance, and safety inspection are only some things you should consider when buying a car. We’ve put together a comprehensive walkthrough of items to check when buying a used car.
Important Vehicle Information
Some must-have documents will tell you a lot about the car. The most important documents are the registration papers and the service history book or logbook. The registration papers will help you determine if the vehicle is legally registered and belongs to the seller. Similarly, the service logbook has information about the vehicle's past servicing, repairs, and maintenance.
You also need to check the proof of ownership and salvage records.
Vehicle History Report
The vehicle history report is the footprint of the car's life, providing an extensive history of the car you are considering buying. A vehicle history report contains the following information:
- Past accidents the car was involved in
- Any other damage the vehicle has sustained
- Previous owners
- The car's estimated value
- Recall notices for the vehicle
- Title transfer history
- State of the car's registration
- The vehicle's odometer readings
- Lien and loan information
- Maintenance and service records
The vehicle history report is an integral part of the car-buying process. Knowing the complete history of a vehicle can help you decide whether or not you should purchase the car you're interested in. For example, if the vehicle has had multiple owners and experienced a few accidents, this indicates trouble. Likewise, absent service records are a red flag.
Proof of Ownership
You get a Manufacturer's Certificate of Origin when you buy a new car. It proves your ownership of the vehicle from thereon. In a private sale, the title indicates proof of ownership. The transfer of this title will prove that you own the car.
You should also get a bill of sale for a private purchase. The bill of sale includes the buyer's and seller's names, the car's make and model, and the sale price.
Private sellers also sign a release of liability form. In this form, they absolve themselves of any responsibility for the vehicle from then on.
Registration Documents
The registration documents for a car may look different, depending on the state. Some states issue registration cards, whereas others have paper documents. Both contain similar information about the vehicle, including the owner's name, plate number, make and model, year of manufacture, and registration date. Some documents also include vehicle identification numbers (VINs).
Failure to register your car may result in penalties and impoundment. For example, the late registration fee in California is $10. But as you delay the payment, the fee increases. You can find the vehicle registration laws for each state here.
Service Records
People who buy used cars should also collect service records. These typically include dates of service, type of maintenance performed, parts replaced, and the cost.
The service records help see if the previous owner kept the vehicle in good condition. If not, you might want to look for another car because a poorly-kept ride will break down more often, becoming a burden on your pocket.
Theft or Salvage Records
Some vehicles have a salvage title, which means the car was declared a total loss. In various states, you can't legally operate cars with salvage titles. Although the categories differ from one state to another, a vehicle may have a salvage title if it:
- Has experienced fire damage
- Was involved in a flooding incident
- Was stolen
- Has missing parts
- Has collision damage
- Has been remanufactured
Buying such a car can be risky for several reasons. Lenders are reluctant to approve loans on such cars plus, there may be considerable damage you may not be able to see immediately, which may require costly repairs in the future.
Thus, it's essential to check the theft or salvage status of the car before you buy it. In some states, vehicle identification numbers are available online. You can check the car's status by running the VIN through the National Motor Vehicle Title Information System. You can also check your local Department of Motor Vehicles (DMV) for theft or salvage records.
Conduct Pre-Purchase Inspection
Second-hand vehicles require a pre-purchase inspection because they've been on the road for an extended period and may have hidden problems. A pre-purchase inspection covers the condition of the exterior, interior, brake system, electrical system, suspension and steering, tires, battery, and engine.
During the inspection, a technician will inspect a used car for any issues that could become a problem for the buyer later. That's why you should opt for an experienced mechanic to conduct the inspection.
Also, get a written pre-purchase inspection report to document the issues. Unlike dealers, private car owners do not give any warranties on their sales. So, a thorough examination will save you a lot of trouble.
Ask Questions From the Owner
The best way to learn about a used car is to talk to the owner. You can ask these questions in a private car purchase:
- Has the vehicle been involved in any accidents?
- How long have you had the car?
- What type of maintenance or repairs did you do?
- Do you have any service records or receipts for the work done?
- Are there any known problems with the car?
- Are you the car's original owner?
- Are you willing to negotiate?
- Do you have a warranty or service contract to transfer with the vehicle?
- Do you have proof of ownership (title, registration, etc.)?
- Are spare parts readily available for this make and model of car?
A Hassle-Free Used Car Buying Experience
With so many online websites to buy and sell cars, it should be easy to find the perfect ride for your needs. Some best used car websites include Autolist, Hemmings, CarsDirect, AutoTempest, and Cars.com. You can also find favorable used car prices on marketplaces like Facebook Marketplace and Craigslist.
The biggest perk of buying a used car privately is that many owners are willing to negotiate, and you can get the best possible used car value that fits your budget. After reading this guide to what to check when buying a used car, you should be all set for the private-party purchase.
This article was written by Andrew Rohrlich. As a brand and product marketing expert, Andrew Rohrlich has crafted products, experiences and communications for household names like Gap and for multiple automotive technology businesses. For nearly a decade Andrew has studied automotive retail in depth from a customer point of view and aggregated the industry’s best research, thought leadership and know how to provide credible and important information to auto shoppers and sellers.
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