- Consumers often feel more trust toward an individual seller than a dealership. They make assumptions about the pricing, often assuming it is a good deal because it is "for sale by owner." Don't fall into this trap. While many excellent deals are available through private sellers, it's best to walk away from some deals. Sometimes sellers are selling their vehicle because they were not offered enough on trade-in; other times they may owe more money on the car than what it is worth, and need to pay off the loan. Always research the vehicle value before making an offer or agreeing to buy (kbb.com or nada.com). Scan classified ads to see what similar vehicles are selling for.
- It doesn't matter if the owner assures you the car has never been wrecked or flooded; you should still run a report. Carfax.com is one site that offers this service. Don't take the seller's word; verify any maintenance records. Most vehicle owners keep records of some kind, and if their car has been regularly serviced, they should have some record of it.
- Look at the title before you surrender any cash. Verify that you are dealing with the registered owner of the vehicle; the registered owner is the only person who can complete a transaction. Ask to see the seller's driver's license; if he won't show you, he may have something to hide.
