Looking to buy a used car? You can indeed save substantial amount of money if you opt to buy a used car instead of new, by directly dealing with the seller instead of going through a dealer. You can even finance your deal with a used car loan for private seller.
According to an estimate from AutoRemarketing.com, compared to the 16 million news cars, there were 42 million used cars that were sold in 2014. However, be informed that there are potential drawbacks in buying privately. So first, get a fair estimate of how much you are likely to save if you choose to deal directly with a private seller. An example from the Kelly Blue Book states that a 2008 Jeep Liberty, which costs $12,120 from a dealer, will cost $9,775 from a private seller – a substantial saving of $2,345.
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Avoid payment by cash, instead opt for check. You will have the flexibility to have the check stopped should something go wrong with the deal. For financing purposes, you can also look at used car loan for private seller. Many banks and financial institutions have used car loans private seller on the offer, but they do charge a high interest rate. The lowest rate that Wells Fargo offered on used car loans for private sellers was 5.71%
If you are self-employed, you can choose auto loans for self employed. You will have to go through the process of credit check and some added paperwork to work out your interest rate. However, availing of a car loan when self-employed may be a good option as it eases out your financial burden.
Buying from a private seller means negotiations are quick and the car may be maintained well. But, the flip-side is that you buy it on an ‘as-is’ basis. So, if the car is defective, you have no consumer protection laws to help. Look for tell-signs like touch-ups, take a test drive, and make sure you are satisfied with the car you are likely to buy. It may be wise to have an expert check the vehicle, so there are no nasty surprises later. When it comes to negotiations, you can use the Kelly Blue Book as reference.