Writing A Receipt For A Private Car Sale

Tips on Buying and Selling Cars

CCBY/dodge challenger1/VisualHunt

Buying a used car can make more sense for some than purchasing a new car. One major benefit of buying a used car is that used cars are generally less expensive than new cars. However, those wanting to buy a used car can benefit from doing some research into car makes and models, insurance, and setting a budget. You don't have to be a car expert to find a good deal on a used car, but it pays to have some knowledge of cars or to take along someone who does when you visit the showroom.

The Price

Let's face it, you're buying a used car rather than a new one for monetary reasons so you want to get the best deal possible. You can haggle on the price and you can demand a better deal for your trade-in but how do you know what price the car you're buying should be sold at, and how do you know what your trade-in is worth? If you use a free used car valuation website, you'll get a good idea of what the car you're interested should cost.

Buy Online

If you're searching online for the expected price of a vehicle, why not stay online and look for the car itself rather than walk from used car lot to used car lot in the hope of seeing something you'd like to drive away in? An auction site like eBay might not seem like the obvious place to buy a car but it's a great way of getting a used car because you get to bid on it, which means you might get a really good deal.

Getting Insurance

You might think that a used car will cost less than a new car to insure. That's not always the case. Some used cars cost more than a newer model to insure because they're more expensive to repair or because they need parts that are rarer or because they are stolen more often than the newer model. If the newer car has more safety features that allow the driver to avoid an accident, the auto insurance company can decide that although the car is more valuable than the older model, the risk of it being damaged is lower.

Buying on a Budget

You don't need to dig deep to buy a great car because you can get something good for under five thousand dollars. You won't be driving anything that will turn heads but you will be getting a reliable car, particularly if you buy something that's known to be dependable. Reading reviews online for the car you're interested in is a good thing to do but most reviews are written when the car is new so check out surveys like the J.D. Power Vehicle Dependability Study which takes information from car owners on their experience of owning a vehicle.

Payment in Full or Financing

Should you finance a used car? That's not a decision you should make based on your financial situation at the time you need the car because things change. It's tempting to buy a car on finance and pay it off bit by bit but if you decide to sell the car before the end of the financial agreement, you might get less for it than you owe. If the car is declared a total loss after an accident, you might be left with a lot to pay for the car even after your insurance company pays out.

Trading Cars

If you like buying used cars and develop a good understanding of what you should do to get the best deal, you could consider buying and selling used cars as a way of making money. You can start small by selling a very old and very cheap car for profit and then put that profit into the next car. If you're going to do this, you'll need to be aware of the lemon law in your state or you might sell on a car that is handed back to you if the buyer believes it fails to meet the standards of quality and performance set out in law.