Mike, you should do a write-up on this.

If you're buying a car via Private Seller, what are the main things you should watch out for? We all know that buying through a dealer is "safer," especially if the car is CPO. But what can you do to make the most out of a Private Seller sale?

 

I understand but I worded it wrong, I've spent way more money on cars then I ever should have but that comes with being young, Im just looking back and wishing I had some of that money for a down payment on some of these townhouses that are flying up everywhere.

 

Always used. With the way cars are built today, you can get some smoking deals on some great used luxury rides.

 

Being in finance I have almost always bought used. I believe in the old saying never sink money in a depreciating asset. I research my purchases and check out the cars as much as possible. By buying used you can also look at the track record that model has shown so you know its faults before you buy. I paid 1/3rd of what my fully loaded 430 cost new or roughly the cost of a new Accord LX. The Accord could never give me the pleasure my right foot does in my GS.

 

Although we have bought lots of new cars - VW, Mercedes, Volvo, Honda (3), Toyota and a new Lexus LS400 in early 1990, we were surprised to find in 2003 that we could buy a nearly perfect low mileage (38K miles), highly optioned, end of the model run, three year old 2000 LS400 at substantially less than 1/2 its original list price.

I'm still driving that 2000 LS400 nearly five years later and I still love it.

Now that we have seen the light, I doubt if we will buy another new car.

 

I thought about doing a big write up on that subject, just as I once did about buying vs. leasing. But the subject is so controversial that I decided not to open up Pandora's box. It is a very controversial subject.....everyone has a different opinion, and dozens (perhaps hundreds) of CL members would jump right in and start arguing. One big block would agree with me; another would disagree, and it would end up like the political arguments in the CL Debate Forum.

But, quickly, in a nutshell, the best way to avoid problems selling to a private individual is to deal primarily with family, friends, or neighbors that you know.
Go to kbb.com (Kelley Blue Book) or N.A.D.A. to get an idea of what the vehicle is worth (the two organizations are close, but don't always agree, and their used-car retail prices by categories are different). If a total stranger that you don't know comes out to your house for a test-drive, if you don't trust him/her, take a witness or a third person along with you for the drive....that will make a car theft or carjacking more difficult (yes, it happens). Since dealing with a private party usually does not involve a Notary Public (they sometimes charge for their services), which you will need to sign over the title of a car that is paid off, deecide in advance how you are going to handle that...and who is going to drive back home with who's license plates until the car is re-registered with the new owner. You may need to go to the state or county DMV office to handle some of these things......for instance, a tax is charged on the sale of used cars, and it has to be paid by registration time.

Buying/selling from private parties is sometimes a good deal, but it can also be risky and inconvenient....that is one reason why so many people trade and go through dealerships, which are equipped to easily handle all these transactions.