Small Business Automobile Association of America

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Private Used Car Sales - Buyer Beware

An alternative to buying from a licensed dealer is buying from an individual. You may see ads in newspapers, on bulletin boards, or on a car. Buying a car from a private party is very different from buying a car from a dealer.

• Private sellers generally are not covered by the Used Car Rule and don't have to use the Buyers Guide. However, you can use the Guide's list of an auto's major systems as a shopping tool. You also can ask the seller if you can have the vehicle inspected by your mechanic.
• Private sales usually are not covered by the "implied warranties" of state law. That means a private sale probably will be on an "as is" basis, unless your purchase agreement with the seller specifically states otherwise. If you have a written contract, the seller must live up to the promises stated in the contract. The car also may be covered by a manufacturer's warranty or a separately purchased service contract. However, warranties and service contracts may not be transferable, and other limits or costs may apply. Before you buy the car, ask to review its warranty or service contract.
• Many states do not require individuals to ensure that their vehicles will pass state inspection or carry a minimum warranty before they offer them for sale. Ask your state Attorney General's office or local consumer protection agency about the requirements in your state.

Before You Buy A Used Car

Whether you buy a used car from a dealer, a co-worker, or a neighbor, follow these tips to learn as much as you can about the car:

• Examine the car yourself using an inspection checklist. You can find a checklist in many of the magazine articles, books and Internet sites that deal with buying a used car.
• Test drive the car under varied road conditions—on hills, highways, and in stop-and-go traffic.
• Ask for the car's maintenance record. If the owner doesn't have copies, contact the dealership or repair shop where most of the work was done. They may share their files with you.
• Talk to the previous owner, especially if the present owner is unfamiliar with the car's history.
• Have the car inspected by a mechanic you hire.

Check out these other used car topics:

• Buying from a dealer.
• Buying from a private seller.
• Paying for the car.
• What's the Warranty?
• Service Contracts.
• Car Ads: Reading Between the Lines
• Taking the Scare Out of Auto Repair

Next Steps.....

Trade Value  -   Financing  -  Leasing  -  Insurance  -  Warranties