What to consider when buying a used car privately-10 things to do when buying a used car privately

10 things to do when buying a used car privately

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For most Americas and Australians, buying a car is a major purchase. You want to make sure you do your due diligence and get the best deal possible, but navigating the financing and negotiating of a car purchase can be complicated.

That is not to say that purchasing a pre-owned vehicle privately is not a viable option; it is. It’s simply a matter of arming yourself with the knowledge necessary to avoid driving home in an unsafe vehicle.

Thus, we address five of the most frequently asked questions about purchasing a used car from a private seller:

Also Read:Where to buy used cars online? 12 Nifty tips to buy cars online.

Here are a few steps you should consider if you are shopping for a new or used car. 

The Car Buying Process in ten Steps

Step 1 – Research Car Option

For example, what do you do you care most about?

  • safety
  • size
  • Boot space
  • reliability
  • Of course looks( You don’t want to buy an Ugly looking old car)
  • Some Extra accessories 

Step 2 : Is a used car from a private seller really cheaper than from a dealer?

In most cases, purchasing a used car from a private seller will result in a lower price.

In essence, when purchasing a used car privately, you are less likely to incur additional costs than when purchasing from a dealership (such as advertising costs or commission). 

However, what you save in terms of money, you frequently forfeit in terms of warranties and Fair Trading protection.

Before buying from a dealer or a private buyer, it’s a good idea to get price quotes from both, so you can weigh the savings against the extra protections.

Step 3 – Find Financing the used car

(Check If you get a car loan for buying a used car)

 Yes, many lenders will finance the purchase of a used car from a private seller. Depending on the age of the vehicle, you may qualify for a secured auto loan

If the car is more than three years old, you may need to take out an unsecured personal loan.

In general, lenders view private sales as riskier than purchases made through a dealer, as the possibility of fraudulent activity is greater. 

If a lender agrees to a secured car loan, you will be required to provide detailed information about the vehicle.

This may include the following:

  • The most recent certificate of registration
  • Driver’s licence of the seller
  • Evidence of the seller’s banking information
  • Current financier payment confirmation letter (where needed)
  • Report of vehicle inspection
    A copy of the agreement between you and the seller regarding the sale.

Step 4: Checks you need to do when buying a used car privately

There are plenty of things you can check before and after you check out the vehicle you intend to buy. And it could end up saving you time and money. 

These include: 

  • Checking the details online confirms the car’s authenticity: It’s critical to verify that the advertisement’s features and registration information are accurate.
  • When you inspect the vehicle, request documentation and test any features to ensure they work properly.
  • Inviting a mechanic to inspect the vehicle: When purchasing a used car privately, it’s always a good idea to have it inspected by a professional.
  • While this may save you a few hundred dollars, there may be a technical issue that you are unaware of, or the price may not reflect the vehicle’s functionality. This will save you money on future repairs.
  • Checking the vehicle registration: This is free and will include the rego expiry date, if its been suspended or cancelled, any restrictions, any concessions and the CTP insurer and policy expiry date. 
  • Getting a vehicle history report: For a small fee, this report will show if a vehicle has been written off, been stolen, the number of registered operators, the vehicle’s past use (taxi/hire car), the vehicle’s first registration date. 
  • Checking the Personal Property Securities Register (PPSR): This is a national online register that allows you to register and check security interests in personal properties – such as cars, boats and artworks. 

Also Read: What to ask before buying a used car?- Luxury car Buying Guide

Step 5– Step Back for few days and Pace Yourself

Now that you have a better idea of your price range, begin shopping for selection and dealer incentives on your specific vehicle selections. 

Avoid impulsively purchasing the first car you see. It is preferable to be patient and certain of your choice.

Be suspicious of dealers who pressure you into making a purchase. Shop both online and in-person — this enables you to compare prices for comparable models. 

Kelley Blue Book and similar tools can be beneficial in determining the value of a vehicle.

Also read: Guide to Buying your First Used Luxury Car

Step 6 – Be Cautious

Once you’ve chosen a vehicle, take your time with the paperwork and test drive it. 

If you are purchasing a used vehicle, obtain the vehicle’s CARFAX accident history and any and all paperwork pertaining to the vehicle’s maintenance history. 

Additionally, it is a good idea to have the vehicle inspected by a neutral third-party mechanic — the cost of the inspection is well worth the peace of mind that the vehicle is safe. 

Take care not to feel excessively pressed. This is a significant decision, and you should take it slowly.

Also read: Is buying a car from an auction a good idea? 7 Nifty tips to buy car from auction.

Step 7 – Consider Your Other Costs

Your total transportation expense will include the vehicle payment, as well as everything else:  

  • Insurance Cost
  • gasoline cost
  • oil changes cost
  • Ongoing maintenance cost
  • license plate fees( Registration Renewal Fee)
  • Service cost

Ascertain that you have included all potential expenses in your monthly budget. Once everything appears to be in order, you’re ready to purchase your vehicle!

By conducting research, determining the exact amount of car you can afford, and taking your time, you can make your car-buying experience enjoyable!

Step 8 – Calculate Your Monthly Payment

Obtaining a lower monthly payment is not always the optimal course of action. 

Occasionally, a dealer will simply increase the number of months on your loan in order to reduce your monthly payment, but this frequently results in you paying significantly more in interest over the loan’s life.

Avoid  More than 5 year car loans—a that’s long time to have a car payment (and a lot of interest to pay). 

Additionally, be cautious of any add-ons such as “extended warranties” that the dealer may attempt to include at the conclusion.

Also read: Top 10 Smart Ways to Finance a Car that can save you tons of money

Step 9 – Early pay off fee with your lender

If you are looking at paying off your car loan before the completion of your full payment term, ask for any reduction if pay-off fee.

Many lenders change more that $1000 for an early pay-off. Make a deal in the beginning ( lenders are more than willing to reduce the cost during the early stages of the loan)

Step 10 : What type of insurance can you get for a used car

Going to a car seller unprepared and without questions is never a good idea, as it could be a one-way ticket to being ripped off. 

Also Read: Why Is Insurance Less Expensive on Newer Cars?

From the physical characteristics of the vehicle and its history to the reason for its sale, there are a variety of items you should verify before finalising the transaction.

The following are some questions you should ask the seller:

  • How long have you been the owner of the vehicle? Did you purchase it used?
  • What is the automobile’s history? Are there any damages, collisions, or repairs?
  • Why are you attempting to sell the vehicle?
  • What is the mileage on the odometer? Do you keep track of your mileage?
  • What features does the automobile possess? Are all of them functional?
  • How many registration plates does the vehicle have? Is it currently roadworthy?
  • Is there any outstanding finance on the vehicle or is it covered by a hire purchase agreement?
  • Has the vehicle recently been modified? Has any component been replaced?
  • Are you willing to haggle over the price?

Final Thoughts

Without a doubt, used cars have personality. And the truth is that purchasing from a private seller is frequently the more affordable (and sometimes more convenient) option.

Also Read: Should I Buy a Car from Facebook Marketplace? Nifty tips included

And in 2021, used car sales are expected to increase, as many Australians avoid public transportation or want to get out on the road and “holiday at home.”

However, whether you purchase a pre-owned vehicle privately or through carsales.com, Gumtree, or Facebook Marketplace, there is an element of risk involved.

Unlike a used car dealership, the car you purchase will come with no guarantee or warranty. 

Similarly, any defects in the vehicle are not covered by Fair Trading, and you will be responsible for all transaction-related paperwork.



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