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What do I need to know to buy a used car from the owner directly?

Hi, I want to buy a car in the newspaper ad I saw for sale by its owner. What do I need the owner to show me so I know this car is not stolen or has other legal issues? Thanks.

Public Comments

1. The title. It should have a VIN that matches that of the car, and be in the name of the person selling it. No one should be listed as legal owner, that would indicate a loan.
2. Above is correct. The original copy of the ownership proves he or she is the owner. Some jurisdictions also require the seller to buy a used car package. That package will list the current and past ( if any ) owner(s) of the vehicle, if the car was ever a write-off, as well as if there are any registered liens against the car. That used car package is then passed on to the buyer at the completion of the sale. This package is supposed to help fight against curbsiders ( used car sales people that pose as private sellers ) and other fraudulent misrepresentations.
3. If the seller doesn't have the title and promises to send it to you, watch out. If his reason is that he still has a loan, and the bank holds the title, you should offer to go with him to his bank to transact this deal. You write a check to the bank for the amount of the sale, the bank hands the seller the clear title (it's in his name), he signs it over to you and hands you the car keys. You go to the DMV and get the title and registration changed to your name, and pay any sales tax if you state charges sales tax on sales between individuals (some state do, some don't). Before you get this far, you should get the car inspected by a mechanic, check to see if you are getting a fair price (www.kbb.com), test drive the car on city streets and highway, and get a CarFax report to find out the car's history. Never take the seller's word totally about a used car's condition. It is possible he doesn't know about pending problems. Only a mechanic can tell you this. Used cars sales are "as-is" which means you can't take it back if you have problems later, even on the drive home.