When looking to purchase a used car from a private individual, you need to know how you plan to pay. Unlike shopping at a dealership where financing options are available, you will need to either pay cash or check to a private seller.
Here are a few options:
Cash – Don’t roll up with $20k in a briefcase, but don’t be hesitant to offer cash if you have it. It’s a very powerful negotiating tool. When seller knows they can have cash in hand they may be tempted to lower the price.
Check – For larger purchases, you can always write a check (most common method). Know that some sellers will want to allow the appropriate time for checks to clear, etc. Keep this in mind if you have to travel a good distance to purchase the vehicle.
Financing – Some buyers will finance, but this isn't common. Consider looking into a home equity loan or line of credit. The great thing about this method is that the interest is tax deductible. You could also go to the bank and get a personal loan. In any case, know what you plan to spend and get pre-approved.
- Cash talks
- Checks need to clear
- Get pre-approved for loans