What paperwork do I need when buying a car from a Private Owner?

Question

Can someone please explain to me the process I need to go through to buy a car from a private owner. I am going to buy it today, but feeling so new and stupid to the whole process. What paperwork do I need from the seller and what paperwork, if any, do I need? I am going to pay the car off in cash. Let's say I'm buying the car for $5000 in cash, should I write a check for proof? or should I just give him straight cash? PLEASE HELP!!!

Thanks so much in advance :)

Answer 1

Either you or the seller needs to write up a Bill of Sale specifying the names and signatures of both buyer and seller, date, amount of money, car description, VIN, odometer reading, and the fact that the car is being sold "as-is" without guarantees or warranties.

You also need to get the title from the seller as you give him the money. Don't take a promise to send the title later. The title must be "clear" of any liens or loans. And the title must be signed over to you.

Have you had the car inspected? Have you test driven it? Have you gotten a CarFax report?

Remember, you buy the car "as-is" and can't take it back later if you find problems, even if the seller lied to you about the car's condition. There are no "lemon laws" or "cooling off" periods to protect you.

Good luck.

Answer 2

There are two simple but very important things you need to get from the seller *today* -- a title and "bill of sale".  The title is proof that a) the seller legally owns the vehicle and 2) is making you the new legal owner.  The seller should fill out and sign the section of the title that transfers ownership to the buyer (you).  Without a completed title, you will be unable to register your vehicle with your state.  An old bill of sale or receipt from when the seller originally purchased the vehicle is not legal proof of ownership nor will it be enough to get the title in your name.

The bill of sale is basically just a hand-written (or typed) receipt.  It is important because it is the seller's acknowledgement that you have paid the agreed purchase price in full.  It should also describe the vehicle you have purchased, the VIN (vehicle identification number) and the terms of the sale (usually "as-is"). You may also be asked to show the bill of sale when you register your vehicle.  

Paying in cash is perfectly safe as long as you get the bill of sale.  In fact the seller probably will not accept a check for his/her own protection.

Once you have completed your purchase and have a title and bill of sale, simply bring them with you to your state's Motor Vehicle office.  You will receive a new title with your name on it (or, more likely, they will give you a "temporary" paper and tell you approximately how long the real title will take to arrive in the mail).  Once you receive it, keep it in a safe place at home or in a safe deposit box.  Do not keep the title in your car (only the registration).

Never attempt to complete a purchase without these two documents.  The only exception would be if you were providing a small deposit to secure the vehicle, and make sure to get a receipt.  Otherwise, if the seller offers to complete the purchase without documents and mail them to you later, politely end the transaction and ask them to contact you when they have everything in order.  Most people are honest, but you never want to take a chance with something as big and important as a vehicle!

Best of luck and congrats on your new vehicle!

Answer 3

Make sure you have a Bill of Sale.  Basically the Bill of Sale outlines the purchase (i.e. You are paying $x*x for 2000 Ford Focus).   This BOS is signed by both parties.  Since you are paying cash, you should get the title.  And there is paper work for the registration.  Your state Dept. of Transportation should have the paperwork available online (another google search).  

Here's a good website that will help:  http://www.dmv.org/bill-of-sale.php

Answer 4

You want to make sure that they title they give you is completely filled out. This will include the date of sale, how much money was exchanged, signitures, etc... Make sure ALL of this is filled out properly and signed and dated in the appropriate spots. Make sure that the VIN # matches the number on the car (this can be found on the top of the dash to the left of the steering wheel) and that all the information about the car is correct.

You can try to write a check but most likely the person wont take it. It puts them at risk in case your check doesn't cash. When I sold mine I required cash. You can also print a receipt from a computer if you would like. Just use Microsoft Word and write receipt of payment on the top and include the date, the amount of money, method of payments (cash), the car make/model and VIN#, both of your names, and signitures. If you do this make two copies in case the ownder wants one as well. The owner may also have made something similar.

As long as the title is properly filled out and sign though you should be in the clear. That is your proof of purchase for the car. Do NOT lose the title! It is the owner that primarily has to worry if you give him something other than cash about whether or not the check will clear.  

Answer 5

All you need is a title and it would be good to get a bill of sale

Good luck