Whether you buy a car from a dealership or online, there are still only two methods of payment: cash or finance.
If you have cash you are in control of the situation. If you find yourself a hungry seller and let him know you will pay $500.00 below the asking price all cash, the car is undoubtedly yours.
Just because you pay cash and get a fine deal doesn’t negate your obligation to yourself to thoroughly inspect the car and the seller. You will need to do a test drive, check out the title document and a Carfax or similar history of maintenance report.
Once you are satisfied with all the terms, invite the seller to meet you at your bank at a certain time and date. Tell him to bring along a Bill of Sale and the Original title to be signed over to you. Your job is to present him with a Certified Check drawn on the bank where the meeting takes place.
We are not talking about a $500 car here. If it is $500, you would still meet him at your bank wanting the same documents, but you could hand him $500. You do not want to hand a person several thousand dollars or more in cash.
If the seller has a problem with accepting a Certified Check, find out why. On the other hand, don’t ask why, just tell him that’s the way you conduct business.
If you do meet your seller at the bank, for your own sake, be sure to stand in a spot where you know the bank’s security cameras will tape the transaction.
If you are paying cash at a dealership, get the total amount of the purchase so you can hand them a check in the correct amount. Many car dealers will take your personal check but have their cashier call the bank to check the funds and put a hold on them until the check clears.
Be sure to read over your sales agreement carefully, because they can and do add extras that you are not aware of.
If your purchase is to be financed, before you even begin searching for a car, tell your lender exactly what type of car you are in the market for. They will tell you the usual amount of loan they make on such a car so you can figure what your down payment will be.
Also inform your lender that you are purchasing from a private party and find out their rules and regulations governing such a purchase. Many times, they will deal directly with the seller after you plunk down your down payment with them.
If you are purchasing from a dealer, you still need your financing in place before you shop for a car. This way you are certain of the type of car you can afford and precisely what your rate of interest on the loan will be.
Word to the wise: Salespeople and finance managers at car dealerships strive to increase your interest rate should you finance through them because they earn a commission over their backer’s stated interest rates.
If you or someone you know is seeking to Sell Your Car, talk to the team at Trade In Genie.