How to Buy a Used Car from a Private Party

This is a summary of how to buy a used car from an individual or private seller (as opposed to a car dealer). Many of these hints are helpful with a dealer as well.

Steps:
1 Make sure you have a clear budget and set aside the necessary cash. Unlike a dealer who may help with financing, a private seller will expect to be paid with cash or check. Ideally, you should spend less than 30% of your savings on a car. If you don't have the cash, apply for financing and get approved before approaching a seller.

2 Shortlist cars. Look through auto classifieds, including Craigslist, AutoTrader, and Cars.com. These should allow you to filter for private sellers.

3 Look through several ads from private sellers and analyze the information. The ad will tell you a lot about the car as well as the person selling it (both in what they say and what they don't). A descriptive and detailed ad suggests that a car owner is serious about selling the car and understands how to conduct the process. Moreover, by studying the car information in detail, you can more easily determine if the car is a potential good deal and worth an in-person meeting with the seller.

4 Contact the sellers by email or phone at a reasonable hour in the afternoon or evening. Try not to call too late in the evening or too early in the morning - they may not be able to talk for long and tell you about the car.
When calling the seller, have a list of questions ready. Verify the make, model, year, mileage and general condition of the vehicle. Ask why the vehicle is being sold. If the answers to these questions are satisfactory, schedule an appointment. Try to meet in a safe and reasonably public area.

5 Be on time for your appointment. If you have to reschedule, call right away to let the seller know.
In person, do a walk-around of the car and ask questions. Probe to understand what issues the seller may have experienced with the car. Make a note of damages in the body and fluid leaks, if any.

6 Examine the pedals and drivers' seat for wear. While odometer tampering is less common than it was, this will give you a good estimation of how much the car was driven.

7 Check the tires, especially the front, for wear. If they are worn unevenly, the car may need front end repairs to the alignment, shocks, tires or tie rods.
With the car off, jiggle the steering wheel back and forth. There should be less than one inch of play, and no funny clunking noises. If there are, the car may need a steering rack or steering gearbox.
For a front wheel drive car, check the CV Joints (and boots). If they are torn and leaking grease, the boot or half-shaft might need replacing. This may be the source of sounds. It will also click when performing a turn to opposite side. Not too expensive a repair.

8 Check the shocks by pushing the car down three times and releasing at each wheel. The car should go up, down, and stop. Repeat for all wheels.

9 Examine under the rocker panels on the side of the car for rust. Once rust starts, it is extremely difficult and costly to stop it.

10 Check the coolant before the test drive,. It should not be brown. The coolant tank should also not be empty and / or contain any brown residue or sludge. An empty tank with brown sludge is likely to have a coolant leak inside the engine (perhaps from a blown gasket or cracked head). That would be a very expensive repair.

11 Check the floor of the passenger compartment for soft spots (rust), and the inside of the trunk for holes.
When starting, the engine should turn quickly and the car should start easily.
A rough running car can mean any number of things, from leaky air hoses to plugged fuel filter to old spark plugs. Don't discount a car just because it runs rough.
When driving the car, the brakes should not shake, grind or squeal loudly. Some squeaking is normal for disc brakes. The brake pedal should feel firm but not hard.
An automatic transmission should shift solidly. If you are unsure about the auto trans, shift it manually. There should be little lag between moving the shift lever and gear changes, and the engine RPMs should change quickly.
A manual transmission should be easy to put into gear, and the clutch should catch close to the floor.

12 Be sure to try the reverse gear as well!

13 Make sure all electric accessories work: windows, locks, audio system, seats, key-less entry and alarm (if equipped).

14 Check all doors for locking (manual and auto), windows, open them from the inside, the outside, and closing.

15 Turn on the heater (even if it's summer) within moments of turning the car on. How long does it take to provide heat?

16 Test the air conditioning. If you have a meat thermometer, bring it and put it in the center vent to check the temperature. 50 degrees Fahrenheit is pretty cold.

17 Test drive the car like you'd normally use it. This includes freeway and city driving. Keep an eye on the temp.
While parked with the engine running, turn the steering wheel completely in both directions. A squealing noise indicates a slipping power steering pump drive belt. While this may be fixed by an adjustment, overheating from friction may have damaged the belt and it may need replacing. There should be no growling noise; such a noise indicates low power steering fluid, easily confirmed by inspecting the reservoir. Low power steering fluid is likely caused by a leaking power steering system, which could be a simple hose or clamp, an easily accessible seal (in an older vehicle), or a damaged steering rack, which can be quite expensive to replace.

18 Check the auto trans fluid with the engine running. It should smell sweet and have little particulate matter. Burnt orange or brown fluid means it hasn't been changed in a long time. A burnt smell indicates a slipping clutch band, which may require a transmission rebuild to correct.
With the hood up, let the car idle with the AC running. Listen and look for the operation of the cooling fan near the radiator. If there was no overheating, this should be working fine. Keep your hands clear, as the fan can start and stop without warning (even if the car is off for a short period after it's hot).

19 Check the oil with the engine off after the test drive, . Black oil is not necessarily bad, but it shouldn't feel gritty. Check under the oil cap; it should be clean. White foam under the oil cap indicates coolant in the oil, and expensive engine repairs.

20 Examine the battery. If it looks old, it probably is, but batteries are cheap and easy to replace. If the terminals are corroded it could be an indication of poor maintenance.

21 Check the air filter. Dirty or clean doesn't matter, although if very dirty it can adversely affect both performance and economy. For a paper filter make sure there's no oil in it. Also check the air intake on the engine side of the filter for oil. Oil in the air intake can be a sign of worn piston rings which means a lot of miles or a lot of abuse.

22 Examine the gaps between body panels. Uneven gaps indicate shoddy accident repair.

23 Consider bringing a small magnet with you. If the body of the car is steel (some are fiberglass, such as the Corvette, and others such as the Saturn are heat molded plastic), then a failure of the magnet to stick can indicate the extensive use of body compound to effect a repair. High quality repairs, even if bodywork of a damaged panel, generally do not require a lot of filler. The sound of the panel when lightly tapped with a knuckle can also be revealing, as can a sighting at a low angle that will reveal ripples if the paint is shinny. If extensive repairs or damage is confined to an easily removed panel, your cost of repair may be substantially lower than if inner supporting panels or primary body structure has been damaged. Proper painting can be expensive, however, but may be worth the effort for a special interest vehicle. (As noted above, beware of rust, especially that that comes from inside to the outside of the panel.)

24 Make an offer if the car suits you. If you're meeting in a safe area, have the cash in your hand if possible. If you have cash to offer, you can often get a better deal than if you need to come back with cash later, since it saves sellers the hassle of meeting again. Another option is to drive to your bank and get a cashiers check, though this requires being near your bank and meeting at certain hours.

25 Get the signed title from the seller if you conclude the purchase,. Also have the seller fill out a bill of sale, saying that party A (address, phone) sold the vehicle to party B (address, phone). If you are stopped by the police on the way home, this paperwork will smooth the way for you.
The person selling the car is the best indication that you can have into how the car was driven, maintained and repaired in the past. Since the odometer, which tells you the mileage, can not tell you how hard a car was driven or how inadequate the service history has been you will need to extrapolate this information for yourself. An ideal seller is a person who has done regular maintenance to the car and can prove this with receipts and service history. Additionally they will be receptive to your questions and will appear truthful and honest in the description of both the positives and the negatives about the car.


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