Buying a used car privately instead of from a dealer has several benefits, chief among which is more wiggle room on pricing.
However, it also has its fair share of drawbacks, notably, you’ll have little to no recourse against the seller if the vehicle doesn’t turn out to be what it was advertised as, and you may become a victim of a scam or violent crime.
“To make sure you make a smart purchase, it’s really important to ask the right questions, take the necessary precautions, and know the differences between buying from a private seller and a dealership,” said Naked Insurance.
Naked has therefore crafted a series of questions one should ask a used-car seller before going out to view a vehicle, and potentially falling victim to a criminal.
These are:
- How old is the car?
- How many previous owners has the car had?
- Who drivers the car most of the time?
- How long have you owned the car?
- What is the current mileage of the car?
- What was the mileage when you bought the car?
- Can you describe the interior and exterior condition of the car?
- Does the car have any outstanding finance?
- Why are you selling the car?
- Where did you buy the car?
- What price are you willing to sell the car for?
- Is there any damange to the car, both externally and mechanically?
- Has the car been in any accidents?
- Has the car had any recent maintenance or services?
- What maintenance needs to be done to the car?
- Does the car have all the necessary ownership and roadworthy documents?
- Does the car hav a service history logbook?
Naked also advises buyers to ask these questions over the phone rather than WhatsApp/Facebook or email, as scammers generally prefer communicating via text.
Should the car tick all the boxes, it’s important to set up a viewing in a public space where there will be plenty of people around should something go awry.
Before the viewing, try to get access to the VIN of the vehicle and run a check at a police station to make sure it’s not stolen.
You can take several additional precautions to safeguard yourself and your money, and to ensure the deal goes smoothly.
“If the person wants a deposit, make sure it’s fair and you can get it back if things don’t work out,” said Naked.
Furthermore, consider putting together a sales agreement which includes detailed information about both parties, the vehicle, and the sale terms.
“That way, you’ve got everything down in writing – like how you’re paying, when you’re getting the car, and if there are any guarantees,” said Naked.
When it comes to sending the money, stick to safe methods like bank transfers and always ask for a receipt after you’ve paid.
Keep in mind that if the car is still being financed, ideally, the loan should be settled before you pay the owner.
You will also need various documents from the seller, including a proof of purchase and a roadworthy certificate, to transfer your new ride to your name.
Spotting a scam
Spotting a scam can sometimes be a difficult task, but there are several red flags to look out for to keep yourself out of harm’s way.
First, compare the car’s price with similar ones on the market.
“If it’s too good to be true, it probably is,” said Naked.
Second, always contact the seller by phone, as scammers tend to communicate via text-based channels such as WhatsApp, Facebook, and email.
When it comes to the transaction, never transfer money without seeing the car in person, don’t send any funds overseas, and avoid making large deposits.
Once the money lands in the scammer’s account, they’ll vanish off the face of the earth and you’ll never hear from them again.
Before the final handshake, make sure that ownership and roadworthy documents are original and match the VIN.
Also, ensure that the current owner’s details match those on the documents.
Finally, check the car’s service history for discrepancies and try to verify it with the manufacturer or workshop that did the job.
“Buying a used car from a private seller can save you cash, but it needs some careful checking,” said Naked.
“Always ask detailed questions, double-check all the info, and stay safe.”
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