How to Buy a Used Car From a Private Seller

When you are searching for a used car, you might feel overwhelmed at the prospect of going to a dealership to finance a car. The car salespeople might make you feel pressured or uncomfortable. Buying a used car from a private seller offers a low-pressure experience. Understanding how the process works should help your purchase be a simple and convenient process.

Searching for Cars

There are many ways to search for cars from private sellers. Newspapers, used auto listings and digital classified sales sites are a few options. Buying, trading and selling marketplaces online are another way. You might also see a car with a “for sale” sign on it. Most of these vehicles can be bought with cash or private financing such as bad credit auto loans.

Search for Financing

Some private sellers will only accept cash or a verified cashier’s check, but others will help you finance a car. The seller may be able to help you with the paperwork, such as the purchase price, age and mechanic’s report. These documents can be supplied to the lender for setting up the financing. The lender will pay the private seller, and then you pay the lender back.

Documentation for Auto Loans

Getting private auto loans for buying a used car from a private seller requires a couple of additional steps. You will need the usual documentation, including proof of income. You will also need to have a credit check. The seller may need to show proof of title, proof of vehicle inspections and registration documents.

Find Out if You Qualify for a Bad-Credit Auto Loan

Comparing Loan Options

You may qualify for more than one type of car loan. If you have bad credit, there are bad credit auto loans that you might qualify for. These loans are typically for people with credit scores lower than 620. You may need a co-signer or a 20 percent down payment to complete the transaction.

Get a No-Obligation Auto Loan Quote

Final Steps

After getting the financing and receiving the keys and title from the private seller, you’ll need to register the car. You may need to get temporary tags and a temporary license plate. You will also need to get auto insurance.

Take a look at this offer for car loans and see if any could help with your car purchase.