So, you've picked a car and done some preliminary bargaining. Now what?
First things first, make sure you bring everything you need with you to your appointment. By "everything," I mean any carseats and regular cargo that will need to fit in your new car, at least one extra passenger, a print-out of the Kelley Blue Book value for that car (or, even better, the KBB app so you can tweak it while you're standing there), a list of common problem areas from Consumer Guide Auto, and a printout of other cars in the area you're interested in. A lot of people will tell you to come armed with the carfax at this point...to me, that's up to you. You'll ABSOLUTELY need to check out the carfax before you buy the vehicle, but this can give you a stronger negotiating point if they don't have evidence of a clean title in front of them when you're looking at their car. Just as long as you know it's clean, that's good enough.
One document you will want to bring is a bill of sale. You can find this document on your state's DMV website. (Essentially, it's a contract between the seller and the buyer stating that you've paid X for the car.)
When you arrive, the very first thing you should do is an exterior inspection. Have your passenger point out every tiny flaw, from rock chips in the windshield to tiny dings in the door to low tread on the tires. Only then should you take it out for a test drive. Pay attention to how the car feels, sensing for problems. Try the heat and A/C and the radio. Also, run through the list of common trouble areas for that model to make sure yours isn't exhibiting any signs of issues.
When you get back, grill the owners on maintenance. You might feel this is redundant because you already asked about records when you first contacted them, but the whole point here is that you want to see any records they have detailing the car's maintenance record to see what it's had done. A lack of maintenance records also gives you a strong bargaining position.
If you decide that this is a car you'd like to look into buying, you have a couple of options. You can leave and look at the other cars on your list, or you can try to buy it right there. There's a temptation among car buyers to worry that if you leave, someone else will come by to snatch up the deal. But we're dealing with the ads that have been up forever, so our sellers are highly motivated and aren't likely to have any other buyers lined up. You won't lose any negotiating ability by leaving; in fact, you might add a level of desperation.
As you're preparing to leave, (have your passenger talk up the other cars you're on your way to see here) mention the price you discussed with the seller before. If they tentatively agreed to a price, mention some of the flaws you found with the car that you hadn't known about when you first suggested that price. See if they'd be willing to come down another couple hundred dollars. If they say yes, scribble down that number on their paper to have for reference when you go to look at other cars. If not, you still have that first tentative price. If, however, you couldn't agree, ask them again one last time, "What's the lowest you'd take for the car, again?" If you really want to be bold, ask, "So, you're telling me if I can't pay the full amount of X, it's no deal?" That might cause a few owners to hedge a bit. You don't need to browbeat them at this point. Before they can give you another firm estimate, say, "Well, I have a few more cars to look at, anyway, so I'll get back to you. But it's good to know there's some flexibility there."
Repeat this for all the cars on your "to-see" list. Go to a neutral location to figure out which you liked best, and then call that owner. If the price is already where you want it, tell them you're ready to deal, pending a mechanic's inspection on the car. If possible, you'll want to get that done the same day, but you can also do it the next day if necessary. In either case, you'll want to show the seller you're serious by putting up a down payment and getting them to sign the bill of sale. (This gives you legal documentation that the car is yours should they try to sell it to someone else.)
Important note: pay your deposit and the remainder with a cashier's check, not cash. You want to leave a paper trail in case there are any problems.
Now that you've placed the deposit, it's time to visit your local mechanic. You can get a reliable inspection for $40 or less. Shop around, if necessary. We had a great mechanic we trusted, so we used him. He verified that the car was in great condition.
IF IT'S NOT: it's up to you. You can get the mechanic to give you an estimate on repairs and see if the seller will subtract that amount from your final sale price. Or you can back out entirely.
Once you get it sorted, you can get the rest of the check to the seller and get the title (if they have it.) Oftentimes, owners will still owe money on their used cars, in which case, the title is technically owned by the bank that loaned them the money. You can meet the seller at the bank to pay off their loan and get the title, or, if that won't work (like if the bank is out of state) you can wire the money to the bank. There's a load of information on this particular topic online.
And that wraps it up! You've purchased a car. Congratulations!
For my husband and me, we were able to get a 2006 Malibu LS for $4800. The car is in great condition, with super-dark tinted windows (bonus for small, oftentimes sleeping kids!), no dents or dings that we've found yet, and great gas mileage compared to our Chevy Venture. Just for fun, I went online recently to look at other Chevy Malibu's in the area...similar cars were selling for $7500. Not a bad way to cut down on the depreciation rate!
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