back to articles | December 31, 2018 | Dale Peterson

Categories: Auto Loans & Financing Types of Car Loans

Person to Person (P2P) - Private Auto Sale

Deciding to purchase a new auto can be a very exhausting experience. Deciding to purchase a used auto from an individual can be even more challenging. It's called a person to person sale (P2P), or a private auto sale. Before trying a P2P sale, make sure you're aware of all the angles. Understanding the process can reduce the stress involved in purchasing an auto in a private auto sale.

Advantages of a Person to Person Auto Sale

Some people think a P2P auto sale is great and others think it's not a wise move. The advantages of buying an auto in a private sale revolve around price and disclosure. The majority of people who sell their autos in private sales price them lower than a dealer would. There are various reasons for low pricing; many people just need to sell their automobile quickly.

You're also likely to get a more complete vehicle history from a private auto sale. People seems to want to disclose their auto's life story when selling it so listen closely. Ask to see any records they have concerning the auto's upkeep. A dealer may have an automobile's records, but you will learn much more by speaking to the actual owner.

Person to Person, (P2P) Private Auto Sale Tips

Just because you aren't visiting a dealership, don't plan on skipping any of the necessary steps involved in purchasing an automobile.

Remember that used auto purchases generally carry a higher interest rate than new auto purchases and can result in higher payments. Being unsure about the interest rate you can qualify for could add thousands of dollars to the price of the automobile.

Have a clear view of your credit history. All three major credit reporting companies allow you to obtain your credit history online. Utilize this service to be completely aware of your credit rating and how it will affect your auto purchase.

When making a person to person private auto sale take the auto for a test drive and to a mechanic for a once over. You'll want to be sure everything about the auto is in proper order. Another good idea is to perform a VIN (vehicle identification number) check on the auto for its prior history. Some reports show everything from routine maintenance to involvement in accidents.

Buying a pre-owned auto from an individual can be just as rewarding as purchasing a new car from a dealer's showroom floor. Just take your time, check out the vehicle thoroughly and negotiate for the best financing option available.