9 Steps for Buying a Car From a Private Seller.

3. Search for a car

   After you’ve been pre-approved for a loan, it’s time to find your wheels. Buckle up – this is where the ride gets fun! Whether you’re looking on Facebook Marketplace, Craigslist or another site, make sure to start by asking the right questions.

   Looking for a simple daily driver to get you to and from work? Or perhaps you want something with four-wheel drive to power through heavy snow in North Dakota and Minnesota? How many passengers are you expecting to chauffer around? Are you interested in fuel efficiency, extra cargo space or special safety features? Ultimately, the car you choose will largely depend on what fits your needs, lifestyle and budget.

4. Do your research

   Once you’ve picked the car you like, it’s important to do some research. Before meeting the seller, look up the car to see if it has any issues. If the seller hasn’t given the car’s vehicle identification number (VIN), ask for it. You can then check the car’s history with online services like Carfax or AutoCheck. This will show if the car has been in accidents, its service history, title status and any open recalls. Make sure the car’s title is clear, not “salvage” or “rebuilt.”

   A “salvage” title usually means the car was in a bad accident or had serious damage, and the insurance company said it was a total loss. A “rebuilt” title means the car was fixed after being declared salvage, but the repairs might not have been done well, which could affect the car’s safety, value and how reliable it is.

   You can also message or call the seller to ask questions about the car. Ask for any maintenance or service records to see how well the car has been taken care of. Regular maintenance shows that the seller has cared for the car. No records might mean the car wasn’t well cared for.

   Also, find out the car’s market value. Besides Cars.com and AutoTrader mentioned previously, you can use websites like Kelley Blue Book or Edmunds to help you figure out a fair price based on the car’s make, model, age and condition.

5. Verify the seller’s identity

   Before meeting the seller, make sure they are who they say they are. Check that the name on the car matches the person selling it. If the seller is hesitant to show an ID, it might be a scam.

   Also, be careful of deals that seem too good to be true. Watch out for things like very low prices, sellers who won’t meet in person or requests to pay using methods like wire transfers or apps like Venmo and Cash App. If something doesn’t feel right, trust your gut and walk away.

6. Meet up and inspect

   Once you’re sure the seller is who they say they are, it’s time to meet and check out the car. But always think about your safety. Meet in a bright, public place like a parking lot or shopping center. Don’t invite the seller to your home or meet in quiet, private areas, especially if you don’t know them well. Always plan on bringing a buddy to all meetups.

   When you meet the seller, make sure to carefully check the car for any problems. Look for signs of wear, rust or recent repairs. Check the tires, engine, suspension, exhaust and brakes. Look at the body for dents or paint differences that might mean the car was in an accident. If you want a more detailed check, you can hire a mechanic to inspect the car before you buy it.

   You should also test drive the car to see how it drives and feels. Pay attention to how the engine responds, the steering, the brakes and how comfortable it is. Listen for any strange sounds or vibrations. It’s a good idea to drive in different areas, like the city and country, to see how the car works in different conditions. If it’s a warm, sunny day – consider letting the vehicle sit in the sunshine for a few minutes. (This can help identify if the car has been smoked in by bringing any fumes to the surface.)

   This is also a good time to ask the seller any other questions you have. For example: Why are they selling? What did they mostly use the car for? (Like work commutes, long trips, racing or hauling things.) Is there any warranty left that can be transferred? It’s okay to be careful and take your time – don’t rush!

7. Make an offer

   If everything looks good with the car, you can make an offer. Private sellers are often open to negotiating, and chances are you won’t feel as much pressure like at a dealership. Just remember, you should know a fair price based on your research.

   When you negotiate, be polite but clear about your offer, considering any problems the car may have, like wear or needed repairs. If you can, offer a little less than your highest price to leave room for negotiation, but stay reasonable. Be ready for counteroffers and stay flexible, keeping your budget and the car’s value in mind.

8. Fill out a bill of sale

   Once you agree on a price for the car, you’ll need to fill out a bill of sale. This is important for both you and the seller because it gives a written record of the deal, showing the agreed terms and protecting both of you. The bill of sale should include important details like the car’s make, model, color, year, VIN, mileage, sale price, sale date and the names and contact information of both you and the seller.

   Both you and the seller should also sign and date the bill of sale to make it official. For you, it proves you own the car. For the seller, it shows they no longer own it. Some states may require the bill of sale to be notarized or have special wording, so check your local rules. Your lender may also need to see the bill of sale as part of your loan. (Here’s a sample bill of sale from the North Dakota Department of Transportation.)

9. Transfer ownership

   After buying the car, you’ll need to transfer the title and registration to your name. You’ll likely need to go to a local DMV office. Bring important documents like the bill of sale, proof of insurance and your ID. Fill out any forms and pay any fees. Also, check if there are extra requirements in your area, like emissions testing or special papers for your state.

Buy Your Ride With Confidence.

Buying a car from a private seller can be a smooth and rewarding journey if it’s done right. By following these key steps, you’ll be able to make a smart purchase – and enjoy peace of mind.

You’re in the driver’s seat! Apply for an auto loan online, or contact a personal lender to get pre-approved today. And if you have any additional questions about buying a car from a private seller along the way, our lenders will be happy to help.