I shared that we recently purchased a truck, cash. I wanted to share the journey we went though because in fact, it was not as easy as we thought. It all started a few years ago when I had a minivan with a car payment attached. A hail storm came through, took my vehicle out in a sense so the insurance paid it off. I was left wondering, do I purchase another vehicle or is there another option. My dad had a Jeep he wasn’t using so I opted to get out of payments for a while and drove the Jeep. My plan was to save money and eventually purchase a vehicle without a payment.
Fast forward a few years and we started saving for a car. I think the hardest thing for me was being diligent with the money we were saving. I drove a vehicle that was a little beat up but I didn’t have payments and it got me to where I needed to go. So by saving money by getting rid of a car payment and driving a vehicle without a payment, allowed us to save and buy a nicer vehicle. We finally were ready to take the plunge into buying another vehicle after saving the most recent tax return and combining it with other funds saved. As you can see above, we purchased a Chevy Avalanche as it was a perfect fit for our family.
A big shoutout goes to my brother. I actually wouldn’t have been able to get through the ordeal without him as he educated me on what to do and went with me to look at the vehicle. I was ready to give up on this guy we purchased from because I felt like it was a repeated run around from him but I learned how to navigate the situation.
How to purchase a vehicle with cash from a private owner (without getting ripped off):
- Research your vehicle – Find out which vehicle is best for you and find out any possible issues before purchasing a car.
- We utilized these sites
- http://www.kbb.com/ This site will let you know what the value is, what others are selling for in your area, the specs etc. This site also had a customer review tab. See what real people think about that vehicle before you purchase it.
- http://www.fueleconomy.gov/ Find out what that vehicle gets in gas milage.
- servicearizona.com Find out if the vehicle has a lien on it by purchasing a lien motor vehicle check. This site is AZ specific so if you are not in Arizona, look for your state’s department of vehicles site.
- Carfax.com This is an investment you need to make when purchasing a vehicle that has been pre-owned. This will allow you to check for any accidents, any services reported, vehicle sales etc. Basically it’s a fact checker. If you invest, purchase the unlimited license plate check. Download the app so you can check license plates & VIN #’s on the go.
- We utilized these sites
- Go to the DMV or 3rd Party to finish the transaction. The DMV is the only one who can clear that title to be sold and make sure there is nothing else wrong with it.
- Questions to ask a seller before meeting with them:
- When is the last time the car had maintenance? Do you have the paperwork?
- This includes tires, oil changes etc.
- Is the title open and notarized for sale? Are there any liens on the vehicle?
- This is different than a clear title. What this means is there is no liens on it and they have gone to the DMV to open the title to allow it to be sold.
- When is the last time the car had maintenance? Do you have the paperwork?
- Inspecting the vehicle:
- I would say one of the best things to do is bring someone who is knowledgable when you go to look at it. Have them do a thorough inspection and to take it on a test drive to see if anything appears to be wrong.
Red Flags:
- Do NOT purchase a vehicle where they promise to pay the lien after you purchase it.
- Check for recent work completed on a vehicle such as bondo or paint jobs.
- Unwilling to meet at a DVM or third party service center.
- Check engine or other warning lights are on. Even if they promise they took it in and said that XYZ was wrong, do not purchase a vehicle with a warning light on unless you are able to get a diagnostic.
How to negotiate a better price:
- Before contacting the seller, have your highest price in mind that you wold pay for that vehicle.
- Always let the seller start with their price.
- Ask if they are firm on the price but don’t ask for a new amount just yet.
- After inspecting the vehicle, look for any flaws that may help you negotiate a better price.
- Start with a lower offer. Don’t start with the price you will pay, go lower and look for their reaction to gauge where they may be willing to go.
- Take their price and your offer to find a price in the middle.
Other tips:
- Best time to buy a car? Before the holidays when people are looking for extra cash or are looking to upgrade their vehicles to a newer model.
- Take your time. Unless you are in an immediate need for a car, take your time to research them and to find the vehicle that best fits your family.
- Have money saved up for maintenance. Consider having at least $1000 ready to be spent on any maintenance that needs to be done. We had to buy 2 new tires and a battery just within the first week of buying this truck.
- Calculate how much the car will cost per month by calculating your gas mileage and insurance.
- Educate yourself on the car you are about to purchase. What normally goes out on them for maintenance? Do you have someone to work on that vehicle if needed?
Saving $$
- Have a plan. Put money towards your car fund each month with a desired goal amount/date.
There it is, how we purchased our new to us truck (with cash) from a private owner. I didn’t talk a lot about how we saved enough money because it was pretty simple. We just spent within our means and saved what we could so anyone could do it!
Kate @ Songs Kate Sang says
Great advice! It can be a little scary to spend so much money – these are great tips!
Clever Pink Pirate says
Thank you, Kate! It’s definitely scary investing a large amount of money at one time but in the end, it can save you time and money just by doing some research 🙂