You will need to make sure you bring Bill of Sale paperwork to the transaction. We also recommend calling ahead of your visit to the DMV so that you have all of the proper paperwork ready when you get there. You will need to have your automotive insurance secured with your carrier prior to driving the vehicle away from the purchase location. It is absolutely crucial, when buying a vehicle, that you have the title signed over to you at the time of purchase. Until your registration is finalized, moving permits are required by law. You can obtain them from your state DMV. These can be a little tricky to get for a car that you don’t own. Consider alternative options such as transportation from the transaction site to the DMV and back to the vehicle. If you choose to drive your newly purchased vehicle, which we do not recommend, and you have the unfortunate luck of being pulled over, try explaining to the officer—bill of sale in hand—that you have just purchased and are headed to the DMV. If you choose to put a deposit on the vehicle prior to the full purchase, remember to get a record of that deposit from the seller. This can come in the form of a bank statement showing they received the money. Make sure all agreements and money exchanges are in writing and signed by all buyers and sellers.

While cash is always the best way to take payment of a private party vehicle. It is important to have a paper trail of your transaction. Be sure the title is signed over to you at the time of your transaction. Also make sure that all parties involved (buyer and seller) sign written documentation of the financial transaction. You can definitely finance a private-party purchase. The process will take a little longer, but you can call your bank directly to secure a loan.

We recommend meeting with potential buyers at a neutral—public—location such as a bank. If the buyer would like to take the vehicle on a drive prior to purchase be sure to hold on to identifying information, such as their driver’s license, while they take the vehicle on a quick ride around the block. We do not recommend getting into a vehicle alone with someone you do not know.

Accepting the first offer you receive is entirely up to you and your financial needs. It is a common strategy to price your vehicle at the top of your desired purchase price with the expectation that it will be negotiated down. If this is the strategy that you choose to take, and the buyer offers the amount you are asking. Then, congratulations! You have gotten exactly what you wanted.

Choosing to negotiate or to pay full price is a personal decision. However, it is common practice to offer a vehicle for sale at the top of the desired purchase price with the expectation that the buyer will reasonably negotiate down. Doing your research will be important during this part of the process.

There are many ways that you can obtain financing for a vehicle purchase. The most common is to go to your personal bank or credit union and apply for a loan through them directly. However, alternatives are available and we can help with that.

There are several differences between purchasing from a dealership and purchasing private party, however, most of those can be summed up in one word—legwork. Automotive dealerships will do the banking and government documentation for you—often including paying your sales tax (where applicable), registering your vehicle for the first year, and/or paying off any current auto loans you have. When buying or selling private party you will be the one doing the paperwork and taking it to the respective banking and government establishments. However, by forgoing the conveniences of working with a dealership you are likely to be able to keep more of the vehicle’s sales price in your own pocket.

Most definitely. When buying out of state, be sure to get a Pre-Purchase Inspection (PPI). You don’t want any surprises when spending your hard-earned money. You can get a PPI by paying an automotive garage for the inspection, or you can drive or fly to the vehicle and do it yourself. If you do buy out of state, remember that the laws regarding vehicle ownership are state-specific. Know your state’s laws regarding inspections, smog tests, etc. Also, expect to pay your state’s sales tax when registering the vehicle at the DMV. We can guide you on which auto shops may be best for a PPI and can guide you through the DMV paperwork as well.

You should:

– Sit in the vehicle—in all the seats—push them back and forth.

– Touch every button.

– Turn everything on—including the radio.

– Lay on the ground and look at the undercarriage.

– Open the hood and examine the engine compartment—is there battery acid around the connection points? Does there seem to be any residue from potential spilling or leakage?

– Check the tread on the tires.