How Can I Drive A Car Home Befote Registering

While many drivers choose to purchase used or certified pre-endemic cars from dealerships, plenty of people buy used cars directly from the owner. Buying a used car from a private seller has its perks: Y'all may be able to go a amend bargain than you lot would at the dealership; y'all can assess whether the terminal owner has taken good intendance of the machine; and you can ask questions about the vehicle from someone who knows it well.

Only there can be some drawbacks to buying a used car from a individual seller likewise. You're working with one individual instead of a company, so you tin't read reviews or testimonials to get a sense of how trustworthy the seller might exist.

We don't sell your data to third parties.

And dissimilar a dealership, a private seller tin't offer you any special warranties or perks for buying a car from them — you don't even necessarily have recourse if the car turns out to be a salvage or was stolen, unless you've signed a contract with the seller.

There are as well the logistics to consider: Buying from a individual seller ways yous take to figure out both the championship transfer and whatever taxes or fees that employ — this process is easier when you buy through a dealership.

There's also the matter of car insurance, when y'all buy a automobile from a private seller: Exercise you still demand insurance before y'all drive it dwelling? Read on to learn more nearly the ins-and-outs of purchasing a used car in a private sale.

Key Takeaways

Ownership a used car from a private owner can get you a good deal, but yous should tread carefully to make sure the buy goes smoothly
Don't exist afraid to inquire lots of questions virtually the vehicle and request data like a maintenance history and VIN report
You'll demand to transfer the title, and, depending on your state, there may be more required paperwork
You'll need car insurance before you drive your new purchase habitation, even though the private seller might not make you evidence proof of insurance like a dealership would

Tips for buying a car from a private seller

Every bit we mentioned above, buying a used automobile from a individual seller can get yous a good bargain, but information technology can also be a fiddling riskier than going through a traditional dealership or a motorcar-ownership website.

Maybe you're buying a car from a friend or neighbor and yous'll demand to sort out the paperwork, or you're buying a machine from a stranger you found online and you're concerned nigh making sure the sale is legitimate. Here are some elementary steps to follow that volition make the car-buying process smoother and safer:

ane. Research and upkeep for the car y'all want

Spend some time thinking nearly what you're looking for in a machine and research models that fit your criteria. Cheque condom and reliability scores, past recalls, and even seek out online communities of drivers who ain the cars y'all're considering.

You should besides budget out how much y'all tin beget to spend. Are you paying cash or taking out a automobile loan with a bank or other lender? Check out our guide to figuring out how much automobile yous can afford.

2. Look for cars for auction in your surface area

One you've determined the make and model of the car y'all desire, you can begin your search. Whether you're scrolling through a site specifically for car-ownership or a full general listings site like Craigslist, read the listings for the cars carefully.

A trustworthy advertising should include plenty of details about the car, similar its odometer reading, trim level, how long the seller has owned information technology, and any damage. Compare the seller'due south price to the car's Kelley Blue Book value — if it's priced too far beneath its fair market value, it might be too expert to be truthful.

three. Talk to the seller

If yous find a car you lot similar, reach out to the seller and go more data: Why are they selling the vehicle? How oft did they accept information technology in for maintenance? Can they share the car'southward maintenance records with you lot? Is there a lien on the car? What about whatsoever open up recalls?

Yous should too ask the seller for the car'due south vehicle identification number (VIN) and then you can await up the car's vehicle history report online.

iv. Bank check out the car in person

Now it'south time to arrange a meeting. Information technology's best to meet in a public, neutral place where y'all're able to inspect the car. Look for whatsoever rust, scratches, or dings on the exterior of the car, and examination electronics like headlights, taillights, turn signals, and the machine'southward radio or entertainment system. Make sure the door's locks, wipers, heat and air conditioning all work.

Once yous feel comfortable taking the car for a test drive, bulldoze at varying speeds and take information technology on the highway to encounter if the car shifts well between gears. Listen for any odd noises from the engine and don't forget to put the machine in opposite.

5. Take the car inspected

If the seller is fine with it, accept the car to a trusted mechanic for a pre-purchase inspection. A professional person volition exist able to do a thorough overview of the car's condition and assess whether it's in good shape. At an inspection, a mechanic tin as well allow you know if they see annihilation that might demand to be repaired or replaced in the near time to come.

6. Make a deal and transfer the championship

Once you've gotten the machine inspected and you're ready to make your buy, it'south fourth dimension to close the auction. You tin pay the amount that the car was listed for, or you lot can attempt and negotiate a lower toll. (If you notice damage or wear and tear that the seller didn't originally disclose, that could give you negotiating leverage.)

When you lot both agree on a toll, y'all'll brand the payment and the seller will sign over the machine's title to you. You'll have to sign it as well, and so take it to your local DMV or equivalent agency to get a new i issued. You should also complete any other paperwork that's required in your state — you can check with your land'south DMV or equivalent department to find out what else needs to be done to transfer ownership and annals the car.

The seller volition likely retain their license plates and registration sticker, and so you should also bank check with your land'southward DMV to see if at that place's a temporary permit that will allow you to drive the car habitation or to the DMV for registration (more on this later).

We don't sell your data to third parties.

Pros and cons of buying a auto from a private seller

Skipping the dealership has its perks, but at that place are besides drawbacks to ownership a used auto from a stranger.

Here are some advantages of buying a car from a individual seller:

Information technology tin exist cheaper than ownership from a dealership - It may be cheaper to purchase a used car from a individual seller than it is to buy from a dealership. And dealership'due south can add charges to your bill of sale, like a dealer or documentation fees, just yous don't have to pay those extra costs when you buy from a private seller
It may be easier to negotiate a toll - Dealers spend all 24-hour interval selling cars to interested buyers, so they have a greater hazard of making a sale at their preferred price point. But those chances are not as high for private sellers, so they may be more than willing to work with you on a cost

There are also disadvantages to ownership a used motorcar from a private seller, including:

You won't get a warranty - Dissimilar dealers who are able to sell warranties on the spot, private sellers cannot, so you lot would need to find a warranty from a 3rd-party vendor if you're interested
You take on the risk of repairs - When you're ownership a used vehicle, information technology may have harm that isn't apparent right away (or the seller may not disembalm all the car'south issues). Before you buy a used car, you should have the vehicle inspected by a trusted mechanic
You won't be able to alter your mind - Some car-buying sites and used-car dealerships may permit you lot test-drive the vehicle and render it if y'all don't want it. But in one case yous purchase a auto from a private seller and sign the vehicle's championship, y'all're locked into the sale

Do yous have to pay taxes when you buy a used car from a private seller?

Figuring out the logistics of a private auto auction can be tricky, especially if you and the seller are both new to the process. When it comes to taxes, you don't need to pay taxes on the car at the time of the sale like you may need to if you buy a vehicle from a dealership.

Instead, you pay taxes to the DMV when you become to register the car. This is where that paperwork at the fourth dimension of auction comes in handy — you may need a signed bill of sale to bear witness how much you paid for the car.

If you've bought a car out of state, you pay the sales revenue enhancement in the state where you register the car. Then if you bought the automobile in Delaware (where there is no sales taxation) but you register it in Pennsylvania, then you'd pay Pennsylvania sales tax.

Still, in that location may exist some tax exemptions for certain situations, similar if your car was transferred to you by a family member. Cheque with your state's DMV or RMV for more information nearly the cases where you might non need to pay sales taxation.

Tin I drive a used car I just bought?

Your state's DMV may give you a short window during which y'all can drive the unregistered car in order to become it home and to the DMV. Your state'southward DMV may also offer a temporary registration plate that you can become ahead of fourth dimension to encompass y'all until y'all get permanent registration for the car.

Check your DMV website or requite them a call to detect out exactly what yous can and tin't exercise correct subsequently you buy a used car from a private seller (it goes without maxim that yous need a valid commuter'southward license to drive off in your new car).

This can exist complicated to sort out, just you should practice some research earlier the purchase engagement so yous're prepared. You shouldn't drive unregistered and count on non getting pulled over, or get into a messy situation where you retain the seller's plates and registration.

Do I need insurance to buy a car from a private seller?

In addition to sorting out the registration for your new purchase, you also take to get the machine insured before you drive it home. In most states, automobile insurance is required by law, so driving without car insurance tin can land you lot in big problem. Luckily, getting car insurance is adequately easy to figure out.

If you have an existing car insurance policy and you're buying a used car, your current coverage may include a grace period for newly purchased cars. That means that yous have a certain amount of time, usually between ane week to 30 days, when your car insurance will automatically encompass your new motorcar before you've officially added it to your policy.

Nevertheless, yous must add your new machine to your policy earlier that grace menstruation is upwardly — if you don't, the car will no longer be covered. Adding a new automobile to an existing policy is usually very uncomplicated, and tin often be washed online or through your carrier'south mobile app, depending on the insurance visitor. The additional automobile may touch on your rates, however, so exist prepared for a slight increment in your premiums.

If you don't already have motorcar insurance, you should purchase a auto insurance policy ahead of time and ready it to go into effect the solar day you pick up the vehicle. It's actually very possible to buy a car insurance policy earlier y'all technically own the motorcar. You but demand some basic info, including:

Names and birthdays for all drivers in the household
Drivers license numbers and social security numbers for all drivers in the household
VINs for all vehicles
An address for the insured and an address where the car volition exist garaged (this is usually the same place)
Your declarations page from your virtually contempo prior car insurance policy

If you don't know the VIN of the vehicle you lot're buying, contact the seller and inquire them to send it over so yous can become a car insurance policy before you option up the vehicle.

We don't sell your information to third parties.

Frequently Asked Questions

How do you buy a used auto from a private seller who all the same owes on a loan?

All loans on a car must be paid off before the title can be transferred to you lot. If you're going to purchase a used motorcar from a private seller who's even so financing the vehicle, you have a few options: y'all can pay the lienholder for the loan directly, employ an escrow service to handle the sale, or utilize for the loan to be transferred to you lot. You tin cheque to see if a car has an outstanding lien by requesting the car's VIN from the seller and searching your state'due south DMV website to come across who owns the championship.

What credit score is needed to buy a car?

Information technology's recommended that y'all have a credit score of 660 and above to buy a vehicle from a dealership, especially if y'all need to take out a loan on the automobile. Merely if you're buying a car from a private seller, your credit score would non be a factor in the auction, assuming you're paying for the vehicle in cash.

Why did my credit score drop when I paid off my car?

Endmost one type of account — be it a credit card, mortgage, or auto loan — tin have a negative impact on your credit score. If your auto loan was one of your oldest credit accounts, and then closing it volition shorten the historic period of your accounts, causing your credit score to driblet. This change is commonly non permanent, notwithstanding, and your credit score can recover in i or two payment cycles.

Anna Swartz is a managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, besides equally an associate author at The Dodo.

Editor & Home and Auto Insurance Expert

Stephanie Nieves is a sometime editor and insurance expert at Policygenius, where she covered home and auto insurance. Her work has also appeared in Business organisation Insider, Money, HerMoney, PayScale, and The Muse.