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Dealing With Strangers. Whether you choose to buy a used car from a private seller or a dealer, you're likely to be meeting with people you don't know. With a dealer, such meetings take place at a business establishment during normal business hours. With a private seller, such meetings may take place after hours at a personal residence.

Buying a car through a private seller can often save time and money for the purchaser .You are able to negotiate more freely and with often a less experienced negotiator, with different incentives from a salesperson at a dealership .While many buyers fear buying lemons, many car repairs can be accomplished cheaply.

Whether you’ve decided to buy a car from a private seller in order to get a good deal, avoid hidden fees or simply because you found the exact vehicle you’ve dreamed of, there’s a number of advantages to purchasing from an individual. Price. Low price is the most important advantage to buying from a private seller.

Easier negotiation: Private sellers are often highly motivated because they need to sell their current car in order to have the cash available to buy a new car. Lower prices: Dealers pay to prepare the used car for sale, advertise it, and pay the salesperson a commission.

Additional Reminders when Buying a Car from a Private Seller. The sales tax on used vehicles also varies from state to state. Most DMV sites offer a calculator to determine the Standard Presumptive Value, of which the state will tax a certain percent. Check with your local DMV to see exact values.

Complete the Sale. Once you and the seller have agreed on a price, contact your bank lender with the car's information and the negotiated price. They'll issue you a pre-written check. The next step is to transfer the car's title. You should go to the DMV with the seller to complete this transaction.

Purchasing a used car isn’t as simple as buying a coffee table. Your state laws may require the seller to get an emissions test for the vehicle and/or an odometer disclosure statement form. A handful of states require the title to be notarized when it’s transferred. In other states, you need a bill of sale.

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