Risk of buying used cars from private sellers

Although you can buy a lot from private sellers, unfortunately, this is a rare thing. As with many high returns, it also involves a lot of risk.

Private sellers vs distributors

When choosing and buying a new used car, the first major decision you need to make is to buy it from a private seller or dealer. A private seller is an individual who wants to sell his vehicle to another person at its greatest value. Distributors purchase and sell hundreds of vehicles each year and must comply with all state and federal regulations.

While doing business with a dealer like Auto Simple is the safest and easiest way to buy a used car, buying it from a private seller can save you money if you are lucky. However, be aware of the potential risks before you spend time and effort buying goods from private sellers.

Private seller risk

Although there are some good advantages, such as potentially better deals, there are many reasons why you can completely avoid private sellers.

Lack of consumer protection – State and federal laws and regulations that apply to dealers do not apply when purchased from a private seller. When you buy a car from a private seller, you buy it "as is", which means that any problem with the car is now your problem. Private sellers are not protected by the Federal Trade Commission's used car rules, which means they don't have to post a buyer's guide like a dealer. You will not receive any vehicle warranty unless the manufacturer's warranty is still valid and you successfully transfer ownership. This is something to consider because you must contact the appropriate department of the manufacturing company to update its records.

More footwork - as the old saying goes, "Time is money." Think about all the time you will spend on Craigslist and other sites, research cars, contact car owners, order vehicle reports, discuss meeting times, find Transport, arrange inspections, and transfer all paperwork. Unless you are really lucky, you will find this process very frustrating and time consuming.

More paperwork - you and the seller are responsible for all the paperwork. This means transferring ownership and/or sales lists, registrations, and any related fees and taxes. Usually, you need to go to the local Motor Vehicles Division (DMV). We all know how interesting this is.

Vehicle history reports - Many times, private sellers do not have a vehicle history report to show you and may refuse to pay. This means you have to spend the money to get a vehicle history report on Carfax or similar sites by looking up the vehicle identification number (VIN). Even if they have a fax or similar report, it is highly recommended that you carry out your own vehicle inspection, which will get you back about $100.

Worse negotiations – sometimes negotiations are easier and sometimes harder. It really depends on who you work with. Pay attention to dealers who pretend to be private sellers and use suspicious strategies to complete the transaction. This happens often on Craigslist. Don't trust a businessman who pretends to be a private seller. They are obviously trying to deceive you, whether their intentions are good or bad. If you have any strange doubts, it is best to leave before you get too deep.

Finally, beware of cars that are sold at very low prices. As the saying goes, "If it's too good, it can't be true, then it's probably true." Sometimes the car offered is a lemon or fraud. This car may have problems, and the owner just wants to dispose of it.