Topic: Buying a car from an individual

I am looking to buy a car from an individual rather than a dealer.

First, it seems the only real way to do it is with cash. This seems like a lot of cash to carry, of course I almost always use cards so $40 in cash is a lot for me. Are there other ways?

Second, what should I be on the look out for? Is there a check list of administrative things that need to be done? Or they show up with the car and the title, I show up with the cash, they sign the title and I leave with their car?

Other thoughts?

Trevor

Re: Buying a car from an individual

tshand wrote:

I am looking to buy a car from an individual rather than a dealer.

First, it seems the only real way to do it is with cash. This seems like a lot of cash to carry, of course I almost always use cards so $40 in cash is a lot for me. Are there other ways?

Second, what should I be on the look out for? Is there a check list of administrative things that need to be done? Or they show up with the car and the title, I show up with the cash, they sign the title and I leave with their car?

Other thoughts?

Trevor

$500 is only 5 bills. tuck them in your socks.

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3 (edited by OnkelUdo 2016-06-21 01:35 PM)

Re: Buying a car from an individual

States vary on if the title needs to be notarized so find out for WA.  Your BMV/DMV/whatever probably has a document pack on their website with stuff like odometer statements, bill of sale, etc that may or may not be needed depending on the car.  Do not buy a car with a lien from a private seller if you can at all avoid it.

I cannot imagine a dealer carrying a $500 potential car but our second Lemons did come from one.

$500-1000 is cash is my limit and for more...I have them meet me at my bank and watch as the teller creates a bank/cashiers/certified check.  Even then, meet in a neutral place and try not to go alone.  If the car is not functional/driveable that is a different matter but get the address enough in advance to scope what the neighborhood is like...and get the VIN to run a stolen vehicle check if you get a bad vibe.

I never knew dealers sold cars to people under 30 until I was about thirty so private sales are kind of a way of life for many of us.  I did not buy a dealer sold car for myself (wife was a different matter) until this year...at 43.

4 (edited by mharrell 2016-06-21 03:37 PM)

Re: Buying a car from an individual

tshand wrote:

Or they show up with the car and the title, I show up with the cash, they sign the title and I leave with their car?

The polite thing is to leave with what is now your car and let them leave with theirs, if applicable.

Other than that, here in Washington there's not much more to it. If it's new enough, you also need to worry about completing the odometer statement that's printed on the title itself, but there is no other paperwork at the time of sale. That's assuming it's a "clean" title with no outstanding loan against it and so forth, of course. The seller is also supposed to fill out the part indicating how much you paid. This will be checked against a standard book value to make sure it's reasonable for the purpose of determining sales tax when you take the title in for transfer. If the agent thinks the reported sales price is too low to be believable, you'll pay tax on a higher amount.

If the seller is competent, you'll also be asked to fill out the release of interest form that's attached to the title so the seller can tear it off and independently send it to the DoL just in case you don't bother to transfer the title before, say, going on a crime spree with the car. That's the seller's lookout, though, so don't sweat it if the seller doesn't ask to do this. This step will require showing the seller your driver license unless the seller is unusually trusting and just takes your word for such matters as your address and license number.

A few tips:

(1) Before handing over any money, make sure the VIN on the paperwork exactly matches the VIN on the vehicle. Typographical errors can be corrected at the time of transfer, but it helps to get a written statement from the seller at the time of sale specifying that the vehicle being sold is the one corresponding to the paperwork despite the discrepancy. In the case of a discrepancy you'll also need to have the vehicle inspected by the State Patrol before any errors can be fixed, which requires going to a licensing agent to get permission to set up an appointment, making the appointment, then taking the vehicle to an inspection station (not the same as an emissions station). For the Seattle area, the closest station is in Bellevue not far from Bellevue College. Sometimes they're booked for weeks in advance, though. A typo need not be a deal-breaker (I've been there...), but you should check to see whether it's something you'll need to address.

(2) You can print out and bring along a WA bill of sale form (from the DoL website) but it typically doesn't do much more good than just a plain piece of paper for resolving difficulties unless you get it notarized while signing it. It does help to assure you get all the necessary information, though. If there are no issues with the VIN or any other points, you don't need the bill of sale at all, just the completed title.

(3) If there's more than one name on the title, make sure each owner has signed off. You can't transfer the title without everyone's signature. This can be awkward if it hasn't happened and it turns out the co-owners are not on speaking terms. Trust me on this one, it's just not fun.

I always purchase from private parties, typically with the patented "wad o' cash" method. Good luck.

EDIT: If the vehicle has an out-of-state title, there's a chance you'll have to go through the State Patrol's inspection process with the vehicle even if the paperwork is in order. It's at the discretion of the licensing agency whether to require this step. You'll also want a written statement from the seller specifying the purchase price if the out-of-state title doesn't have space for that. This would be another occasion in which the official bill of sale form might be handy. One last point, although it doesn't matter at the time of purchase: You may also have to worry about an emissions test if it falls within the age range for which that's required, although that's true regardless of whether you deal with a private seller.

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Re: Buying a car from an individual

mharrell wrote:

(3) If there's more than one name on the title, make sure each owner has signed off. You can't transfer the title without everyone's signature. This can be awkward if it hasn't happened and it turns out the co-owners are not on speaking terms. Trust me on this one, it's just not fun.

I just went through this.  Bought a car in Arizona and only one person needs to sign it there. Got the signed title in the mail and went to the local SOS office and they wouldn't take it.  Had to mail it back to get the other signature.

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Re: Buying a car from an individual

cabinboy wrote:
mharrell wrote:

(3) If there's more than one name on the title, make sure each owner has signed off. You can't transfer the title without everyone's signature. This can be awkward if it hasn't happened and it turns out the co-owners are not on speaking terms. Trust me on this one, it's just not fun.

I just went through this.  Bought a car in Arizona and only one person needs to sign it there. Got the signed title in the mail and went to the local SOS office and they wouldn't take it.  Had to mail it back to get the other signature.

Yep, this is normally the difference between joint custody states and ...um, everything else.  OK, no problem (may have changed now) but TX it was a real issue

Re: Buying a car from an individual

In California, a title with two people can be either OR or AND.   My wife and I have two cars, one listed as Alan OR Sharon, and the other as Alan AND Sharon.   The first would require only one signature, the second would require both signatures.

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8 (edited by coolhand454 2016-06-21 07:34 PM)

Re: Buying a car from an individual

If can try to make the deal at neutral place. Here a little visual aid for the money transaction:

https://youtu.be/00bhWY-vTj0?t=34s

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Re: Buying a car from an individual

CowDriver wrote:

In California, a title with two people can be either OR or AND.   My wife and I have two cars, one listed as Alan OR Sharon, and the other as Alan AND Sharon.   The first would require only one signature, the second would require both signatures.

I'm gonna guess she doesn't want any association with the Super Snipe, eh? smile

OR vs AND is also applicable in AZ, we like to avoid AND whenever it comes up. Never mind speaking terms, what about if someone dies?

Aside from that, I've never bought a car from a dealer (except once at the dealer where I work- that involved four signatures and handing them a post-dated personal check) so every time I've dealt with this, it's been cash in person. For stuff like my $800 Moto Guzzi, I just show up with the $, when it's more like $5000 I try to meet at a bank- it makes notarizing title easy and whether you're withdrawing or depositing, it's harder to get in  a counterfeiting issue when sitting in the bank...

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10 (edited by littleturquoiseb 2016-06-22 09:06 AM)

Re: Buying a car from an individual

cabinboy wrote:
mharrell wrote:

(3) If there's more than one name on the title, make sure each owner has signed off. You can't transfer the title without everyone's signature. This can be awkward if it hasn't happened and it turns out the co-owners are not on speaking terms. Trust me on this one, it's just not fun.

I just went through this.  Bought a car in Arizona and only one person needs to sign it there. Got the signed title in the mail and went to the local SOS office and they wouldn't take it.  Had to mail it back to get the other signature.

Even worse when the one person is dead ... Purchased a tow pig in NY (from a dealer), I live in NJ...NY requires a signature and copy of the death certificate, NJ requires a signature and a notarized copy of the Power of Attorney.   Imagine me asking some widow I haven't met,  who did not sell me a car to send me some legal paperwork.

i had moved and was living about 100 miles from the dealer (who also did not sign the paperwork correctly) ... when I explained the difficulty of fixing the paperowrk to the lovely women at the NJ DMV she helpfully informed me "I didn't tell you you had to walk there!"   

My moral of the story is "transfer owners or states one at a time" .... I like the PA process.... you and former owner go to a "Auto Tags" place (typically used car dealers or AAA) and do all the paperwork on the spot and you walk away with a new title, temp tags and sometimes transportation insurance.... all available on nights and weekends!   here is a web site for a chain place (no I'm not advocating, but it has a typical price list and service list)... http://imperialautotags.com/

Jeff
Three Pedal Mafia
Ombudsman - Coalition of Alternate Breakfast Meats

Re: Buying a car from an individual

Not sure why you would worry about the title if you are only planning on racing the car. Here in SC if the car is older than a 2003 you can send it to the crusher with only a bill of sale. I mean if your not going to license it for the street then why bother with to much hassle. I would get something in writing with a VIN number and a signature but for a race car that's about all I worry about.

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Re: Buying a car from an individual

Type44 wrote:
CowDriver wrote:

In California, a title with two people can be either OR or AND.   My wife and I have two cars, one listed as Alan OR Sharon, and the other as Alan AND Sharon.   The first would require only one signature, the second would require both signatures.

I'm gonna guess she doesn't want any association with the Super Snipe, eh? smile

I was just referring to our daily drivers.   As for the Super Snipe, that is in my name alone.   She does not consider it a car, but a plaything.

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IOE winner in Super Snipe v2.0 -- Buttonwillow 2016
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13 (edited by littleturquoiseb 2016-06-23 10:27 AM)

Re: Buying a car from an individual

steve wrote:

Not sure why you would worry about the title if you are only planning on racing the car. Here in SC if the car is older than a 2003 you can send it to the crusher with only a bill of sale. I mean if your not going to license it for the street then why bother with to much hassle. I would get something in writing with a VIN number and a signature but for a race car that's about all I worry about.


Not true around here.(PA)  ...  we had to cut up a race car to small enough parts that it want't a "car" any more or the crusher wouldn't take it.

A frame is a car and you need to have a title in your name (not a signed by previous owner title) .... (1/4 of a frame is scrap metal BTW!)

Jeff
Three Pedal Mafia
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Re: Buying a car from an individual

Plus keeping the car streetlegal is really awesome for testing... and daily driving.

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Re: Buying a car from an individual

littleturquoiseb wrote:

Even worse when the one person is dead ... Purchased a tow pig in NY (from a dealer), I live in NJ...NY requires a signature and copy of the death certificate, NJ requires a signature and a notarized copy of the Power of Attorney.   Imagine me asking some widow I haven't met,  who did not sell me a car to send me some legal paperwork.

i had moved and was living about 100 miles from the dealer (who also did not sign the paperwork correctly) ... when I explained the difficulty of fixing the paperowrk to the lovely women at the NJ DMV she helpfully informed me "I didn't tell you you had to walk there!"

Depends on your luck with NJ.  I went to a DMV with a title signed by someone other than the owner and the POA paperwork, and the lady behind the desk didn't want to even see it.  Wouldn't even look at it.  Too much paperwork for her.  She just gave me the new title in my name without asking. 

Go towards the end of the day on a Friday, or maybe before lunch.  They're much less likely to care.