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Used Cars By Owner – Must Know Facts

Used cars by owner sales is just one way that you can purchase your next automobile.  You need to ask yourself a few important questions before you actually go out and start looking for a car to replace the one you already have.  We will attempt to show you the questions that you should be asking and the answers that might make the most sense for someone that is in the market for a used car.

There are many places that you can find used cars.  The trick is to find a place or a person that has a reliable car that will offer you value over the long term and that you can afford.  This is a task you are going to have to work at but it certainly is doable. 

The one really big advantage of buying a used car over a new car is price.  It is commonly known that as soon as you drive a new car off the showroom floor it will depreciate 20% before you get to the first stoplight.  Perhaps even more amazing is that before you own that new car for 3 years it will only be worth about 60% of your purchase price.  This makes ownership of a brand new car about the worst investment you could possibly make.

If you go out and find used cars for sale by owner you can more or less eliminate the depreciation fiasco that accompanies the purchase of a new car.  Another thing that will make you feel good about buying a used car instead of new is the fact that you can get all the extras and options that you might not be able to afford on a new car.   Options can add a tremendous amount of money to the bottom line of a car.  On a used car it barely raises the price.  It is a nice little extra for those that don’t need the prestige of a brand new car.

There are inherent landmines that you must navigate when buying a used car.  You have to be on the lookout for worn out transmissions, engines that might not have been maintained properly, brakes that are worn down, and weak air conditioning just to name a few.  So when buying a used car you must take extra care to examine the car very thoroughly or have someone who is skilled in automotive repairs examine the car for you before purchase.  You don’t want to make a costly mistake that could be avoided.

So when you look at used cars for sale by owner or even at used car dealerships the item on top of your checklist should be to take as much risk out of the buying experience as possible.  Let’s take a look at how you can accomplish that task.

Before you even go out to look at any cars you should do research.  Research can include everything from talking to people who already own the model car you are thinking about buying to reading reviews and consumer reports on auto issues.

Start with reliability.  Nobody wants a car that is not reliable and that is where buying a used car has some real advantages.  A car that is a year or two  old has a history.  Chances are a few hundred thousand people have bought that car and have already driven it for quite a few miles.  Any problems inherent to that model will have become obvious and reported in reviews.  And boy do people love to talk about their cars.  If there is a problem it won’t take long to uncover it.  You can easily rule out a particular model if too many problems become the norm when discussing the car with other owners. 

You also would want to check on the fuel efficiency of the car.  With gas prices seemingly always rising a more fuel efficient model might be in your future.  And if not an economy car then certainly after viewing the epa fuel data of let’s say used suvs your thinking might become more inline with fuel efficiency rather than size.

Even if you are looking at a car that is on a lot that sells certified used cars it is absolutely imperative that you get a CARFAX report.  You will also need to get the report if you are looking at a used car by owner.  These reports are worth their weight in gold and will help you to avoid very costly mistakes.  All you need to run the report is the vehicles vin number.  You enter the number on the CARFAX website and you will get a report back that will let you know if the car:

• Was ever in a severe accident
• Ever classified as a lemon
• Ever flooded
• Ever had odometer problems
• How many owners the car has had
• If the car has high mileage
• If the car was a rental or fleet car
• If the car was ever classified as a total loss
• If the airbags were ever deployed on the car
• If the car ever had any frame damage
• A look inside the service records of the car

Very valuable information wouldn’t you say?

You should always take a car that you are thinking about buying for a test drive.  There are no exceptions to this rule.  I know many people are starting to buy cars over the internet and have them shipped cross country.  They are enticed to buy this way because the car is normally being sold at a very good price.  They send a mechanic to where the car is located so it can be checked out.  If the mechanic says the car is in good running order and the price is right then they buy the car.  This is a very big mistake.  There is no  substitution for you test driving the car.  You can tell quite a bit, even if you know nothing about cars, simply by driving it.  Cars used as “internet bait” to get you to buy without test driving is a very risky business.  More and more used cars by owner type vehicles are showing up on the internet.

When you find a group of used cars sale by owner at a lot or in the paper you need to check them out.  Here is a list of some basic items that you should be looking at:

1. The Car Body:  Walk completely around the car.  Make note of missing hubcaps, worn or missing windshield wiper blades, broken mirrors, cracked or broken light lenses, rust or corrosion, dents and scratches, broken or scratched windshield.  Every defect you find should be considered a deduction off the asking price of the car.  After all you are going to have pay to repair these items.
2. Tires:  Make sure that you get down on the ground and examine the tires very closely.  Not only do tires cost a lot of money but worn or cracked tires are very dangerous.  When you think of tires you should be thinking safety.  Tires should be from a manufacturer that you have heard of like Goodyear, Firestone, Michelin, or Bridgestone.  The tread wear must not below 2/32 or the tire is unsafe and must be replaced.  Keep that in mind because anything near 2/32 means you will be replacing the tire very soon.  Other defects you need to be on the lookout for is cuts, bubbles, cracks, and irregular tread wear. 
3. Vehicle Manufacturer’s Label:  Avoid major problems and don’t skip this step.  You can find this label inside the drivers side door.  It will either be on the on the door jam or the outer edge of the door.  There are two things you want to check on the label.  One, you want to make sure that the VIN number that is on this label matches up to the VIN number that is on the car title and the registration to the car.  If there is any discrepancy at all do not buy the car.  The seller will have an excuse why there is a problem and tell you that it can be fixed….Don’t listen to him and walk away.  The second thing you want to check is the date on the label that will tell you when the car was manufactured.  If the car was advertised as a 2007 and the label says 2006 then you can rest assured that the car is actually a 2006. 
4. Interior:  You will be looking for excessive wear and tear and also to make sure that all equipment is working properly.  A good place to start is at the seats…especially the drivers seat.  Make sure that there are no rips, tears, or excessive wear.  Also make sure you adjust the two front seats.  Check to make sure they adjust correctly forward, back, up, and down.  Make sure to do this.  You don’t want to find a problem with the seats after you have already purchased the car.  Next check the seat belts.  You need to sit in each individual seat and make sure that the seat belts work correctly.  Be especially vigilant when checking the driver’s side seat belt.  All the doors should open and close without a problem and should lock and unlock without any glitches.  Also make sure to lock and unlock the doors with the key.  Check the trunk to make sure the door opens and closes properly.  Also make sure that there are no odd smells coming from the trunk.  Smells from the trunk are a tip off that the car was in a flood or the lid doesn’t shut correctly.  Start the car and make sure that all the dashboard gauges work properly and that no warning lights stay on.  Make sure that the turn signals blink on the inside.
5. Electrical:  This is the absolute truth…Electrical repairs on a car will cost you more money than just about any other type of repair.  If you find an electrical problem do not buy the car.  Check that all the lights, inside and out, are working.  Check the windshield wipers, horn, radio, windows, door locks, and all other features that work off of electricity.
6. Heating and Cooling:  Turn the heater on.  Heat should come out and it should come out hot.  If it does not come out hot within a few minutes there is something wrong that could cost you a lot of money to fix.  Turn on the air conditioner.  Cold air should come out pretty quickly.  If cold air does not come out there is a problem.  Problems with the a/c can cost you a substantial amount of money.  Don’t think you will fix it later because it is a used car by owner that is being sold at a good price.  That good price can turn into a nightmare rather quickly.
7. Flood Damage:  Flood damage in a car is very expensive to repair and sometimes can’t really be brought back to an acceptable condition no matter what you do.  When water from a flood invades electrical instruments or wires they will start to corrode.  Check for mildew smells, water stains on the carpet of the floor or on the seats, and very important….check the engine oil.  If the oil has a milky color it normally will mean that water has gotten into the engine.
8. Engine:  The engine is the single most expensive component of any car.   If you can you should verify that oil changes were completed at recommended internals.  A dirty or oily and greasy engine is a bad sign.  An engine that smells like burnt oil is a sign of a engine that has internal problems.  Check the oil level with the dip stick.  A low level is a sign of a improperly maintained car.  Start the car and walk to the back where the tail pipe is located.  If there is blue smoke coming out of the tail pipe it means that the engine is just plain worn out and burning oil.  If there is black smoke coming out it means that the engine is burning fuel.
9. Transmission:  Used cars, sell by owner or by car lot need to have their transmissions checked out.  Costly and difficult to repair, transmission problems are common.  Make sure the oil level is correct.  Smell the transmission oil and make sure it does not smell burnt.  Start the car and while keeping your foot on the brake shift into reverse, neutral, and the different drive gears.  If there is more than a 1 second delay between shifting and the transmission engaging in the new gear there is a problem.  There also should not be a jerky type feel to the shifting of gears.

Used cars by owner for sale need special attention when it comes to the paperwork that is involved in the transaction.  No used car buying tips list would be complete without talking about paperwork.  Your worst nightmare is if you buy a used car and the title information does not match the vehicle information or if there is lien against the car.  If any of these situations show their ugly head you are going to be in for one big and costly surprise when you attempt to transfer the title or register the car.

When used cars sell by owner you need to make sure that the person that is signing the title over to you is the actual owner of the car.  Good used cars from a car lot should come with a warranty.  Do not take a salesman word for anything…GET IT IN WRITING.  If there is a warranty on the car get it and all of its points in writing and make sure that you completely understand what you are reading.

There are many tips for buying a used car.  But I’m sure that the number one tip that you are interested in is how to get the very best value on a cheap used car.  While there are many theories and just as many experts on this subject there are a few things that hold true no matter what. 

• Low mileage mean you are going to pay more.  But it is worth it.
• A car that has never been involved in an accident is better that one that has been involved in even a minor one.
• A car that has complete maintenance records is a big plus.

Don’t ever make a hasty decision or buy the first car you look at.  Compare many cars and models.  The one thing you can be sure of is that you will never run out of cars to look at.

Used cars for sale on the internet need special attention because you can’t visually inspect them.  If your knowledge of cars and mechanics is limited then this is probably not the best way for you to buy used cars.

There are now car lots that sell used cars by owner.  They take these cars in on consignment.  Don’t be fooled into thinking that the car lot will help you out in any way if there is a problem.  That is not their job.  Their job is to advertise the car, let you test drive the car, and take your money if you decide to buy the car.  They are not responsible for making sure the title is free and clear or the condition of the car is good.

Some people want to make car sales their permanent work from home jobs and decide to  sell used cars from their driveways.  While you may find a good deal buying from these people I would be extremely careful and probably not make it my first choice.

Never buy a car that you really can’t afford.  That doesn’t mean that you should go out and only look at cheap cars.  Remember…cheap and inexpensive are two different things completely.

You will also have to watch out for used car quotes that seem to good to be true.  Too many times they are just a come on to get you to come in and ultimately purchase a more expensive car.  Remember that there is no such thing as a free lunch or free cars.

Auto insurance is another factor you will need to keep in mind when selecting a used car.  Insurance costs vary quite a bit depending on the car you ultimately decide to buy.  Sport car insurance will cost a lot more than car insurance for an economy car.

Used car buying takes time, research and patience.  There is never a need to make a hasty decision that can lead to a costly mistake.  A used auto means that you are going to take over the responsibility for repairs that a new car lot would normally handle.  So be vigilant in your inspections.

When somebody is going to sell used cars by owner it means that they do not have a proper repair or inspection facility.  So that means you are going to have find someone you trust to do the work.  Never hand over any payment until you are completely satisfied with a cars inspection report.

Let’s recap the important points to be considered when buying a used car:

• Get a used car history report from CARFAX
• Make sure you get the car inspected
• Avoid buying a car that has been involved in an accident
• Test drive and compare many cars.
• Make sure you have a full understanding what repairs might be needed and how much those repairs will cost before you buy a used car.
• Never buy a car that has been in a flood.
• Make sure everything is put in writing. 
• Without a doubt make sure the title and registration have the correct information on them.

Used cars by owner can be a great way to get your next car….But only if you are meticulous in your research.

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