How to Buy a Car from a Private Seller

Seller and a couple in the showroom

These days many people prefer buying a car from a private seller instead of going to a dealer. The biggest advantage of this practice is that you can buy a vehicle for a cheaper price. One does not have to pay for administrative charges, maintenance cost, and paperwork while dealing with a private owner. Apart from this, people with bad credit face difficulty in getting a car loan from banks, but with a private seller, they can bargain, negotiate, and close a profitable deal. Apart from this, people who like imported or customized cars also prefer to approach private owners to avoid a lengthy legal process and to save some money. If you too wish to buy a vehicle from private party then you should take the following steps to ensure that the dealing goes smoothly.

Steps to Buy a Car from a Private Seller

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Pros and Cons of Car Title Loans

55Car title loans, as the name suggests, are obtained by using a car’s title as collateral. A car’s title is issued by the Department of Motor Vehicles (DMV). This deed contains the name and address of the current owner, make, model and year of the vehicle, and the date on which the vehicle was first sold. In case of subsequent sales, the car title is handed over to the new owner, who obtains a fresh title from the DMV.
Hence, it is a certificate of ownership, and can function as collateral, allowing the lender to sell off the car in case of a default. Some lenders also expect the borrower to provide them with a duplicate key in addition to the title. Auto title loans are targeted at borrowers who have bad or no credit history, and are in desperate need of instant cash. Generally, lenders provide between 20% and 50% of the market value of the car, which they can expect to recover in case of default. These are short-term loans that have to be repaid within 30 days. The lenders are small, unregulated, non-bank financial institutions.

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Are You Overpaying for Your Auto Insurance?

54Did You Know?
Insurance companies reward you with anti-theft discounts if you have etched the vehicle identification number (VIN) on your windows.
Most of us do not realize that we end up overpaying for our auto insurance premium every month.
Wondering how? Well, it’s because we do not bother to shop around and compare the rates offered by other insurance companies. Instead, we choose to stick to the same company as we renew our car insurance policies every year.

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