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Deciding
to purchase your next vehicle through someone privately is not as easy to
get if you have bad credit. Many people would rather purchase thru a
private party because generally you'll probably find a better deal. It
seems like that would be the way to go because you can talk to the owner
personally which you can find out about how the vehicle was maintained, if
it had been in any car accidents, etc... Many times people will look
into buying a older model vehicle because of the cost. However, a
problem that people generally run into is trying to find a bank or a
lender to finance them especially on older models. Why? Because older
model vehicles can break down more frequently which can affect how you pay
your car loan.
Whether
purchasing a car thru a dealership or private party, banks determine your
monthly payments by the year of the vehicle, how many miles are on it and
of course your credit. Just like going thru a dealership, the older
the vehicle is and the more miles it has on it, the shorter the term will
be which means a higher car payment. Of course, that is one thing that you
are trying to avoid is high car payments so buying that car from a friend,
relative or next door neighbor might not be worth it after
all!
Another
thing that you can't do when buying from a private party is you can't buy
an extended warranty. Lets say you bought this great running car
from someone with only 50k miles on it and you know that it was maintained
regularly but then a month later out of the blue the transmission decides
to explode (that's what happened to me). To replace a transmission
in a Nissan was going to cost me at least $3k so now what? You have a car
payment of $300 per month for 4 years and still don't have a car to
drive. Unfortunately, mechanical failure happens regardless whether
the car is brand new, 5 or 10 years old and it comes when we least expect
it. Also, in some cases you won't have the opportunity to purchase life,
disability or gap insurance like you can at the dealership.
So if you decide to purchase
your next car privately, make sure you follow these
tips:
Secure Your Financing
Make sure you find a lender that is willing to give you a car loan
before you decide which vehicle to buy since its the lender that decides
how much they are willing to approve you for. However, in most
cases usually that great deal on a car that your next door neighbor is
selling doesn't come around too often.
Know What Questions to Ask
An informed buyer is a smart buyer, so don’t be afraid to ask
questions. Start with these basics:
 | How long have you owned the car?
| Has it ever been in a car accident that you are aware of? |
| Why are you selling it?
| Can I review the vehicle’s repair and maintenance records? (If a
seller says he doesn’t have the records, ask him for the name of
the mechanic or shop that works on the car so that you can review
the records there. If no records are available, walk away.)
| How has the car been driven—around town, daily commute, long
trips?
| Is the seller a vehicle dealer? Is the title issued in their name?
(If you suspect that a seller is not a private owner but an
unlicensed dealer, be extremely skeptical. These individuals do not
comply with state or federal laws governing the sale of vehicles and
often peddle cars with “shady” pasts and serious mechanical
problems.)
| If it seems like the price is too good to be true, ask if the car
has a salvaged title, and immediately walk away if it does. Salvaged
vehicles are often uninsurable and a risky venture since they have
typically incurred major damage at some point. |
| Check the odometer and verify what the title says. IN the state of
Arizona, you could have a box (A), (B), or (C) mile vehicle car
which you would find one of those letters after the miles. Box
A means actual miles known, box B means the car has over 100k (many
cars just turn over and start from 0k) and box C means miles are
unknown because either the vehicle had been in an accident or the
odometer had been tampered with. Go to the department of motor
vehicle in your state to find out |
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Remember, if a seller refuses to answer your questions do not
hesitate to walk away from the deal.
Do Your Homework
The seller wants to make the sale, so you might not get a straight
answer to all your questions. To be safe, use these techniques to make
sure you know the truth about the car you want to buy.
| Have a reputable mechanic inspect your vehicle
| Obtain a Vehicle History Report and Type in the vehicle
identification number (VIN) and, within minutes, you’ll know if
the car has ever been reported stolen, been wrecked, had its
odometer tampered with, had multiple owners, and much more. The
minimal cost—$19.95—is a small price to pay for peace of mind. |
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