Buying Private VS Dealership
With a dealer, you have recourse. With a private purchase you have little or none, with that said, lets look at the pro's and con's buying private.
Buying privately is simply buying "as is". When you purchase privately, you're buying a car exactly as you see it .... any problems the car has become your problems. When someone's about to sell their car, it's usually because they're buying another or seller not being satisfied with trade allowance from dealer.
On the negative side buying privately
If the vehicle is found to be stolen, then the buyer is out of luck. The law says that a stolen vehicle returns to the original owner. The buyer loses the whole purchase price, and would have to sue the seller, who by then may or may not be able to be found.
There is also the risk of liens being registered against the vehicle. Any liens that are found to be registered against the vehicle would then be the responsibility of the new owner ... they would have to either pay out the lien, or face repossession of the vehicle by the lien holder or The vehicle may have had prior accident damage, and the buyer would have little or no recourse.
Buyers Beware - curbsiders thrive on free websites such as CRAIGLIST and KIJIJI
What is a Curbsider curbsiders pose as private sellers selling stolen - rebuild - flood or frame damage vehicles to unsuspecting buyers, industry studies show upwards to 25 per cent of all automotive classified ads are placed by curbsiders, it's a reality these offenders continue to operate on unwary consumers. The term curbsider applies to anyone whom sell multiple used vehicles without a registered licence.
Having answered thousand of consumer questions through the Internet about lemon purchases I am stunned at the high percentage that are Internet related from sites like Craiglist - Kijiji and Ebay There are many good deals to be had, sorting them out is the problem as there are also a fair amount of scams, the number one question is finding out why buyer is selling and having trust in the sellers answer.
How to lessen your chances dealing with a curbsider " the public has to start asking the right questions from anyone selling a vehicle "
Most curbsiders have more than one vehicle for sale, when you phone about an advertised vehicle, say: " tell me about your vehicle for sale " if they reply which one it's most likely a curbsider with several vehicles for sale " however keep in mind that some polished pro scammers maintain one phone number per vehicle.
In a private sale always ask for ID and proof of title from the seller, if the two pieces don't match " walk away " don't listen to polished scam answers like, it belong to a friend whom is out of the country, or selling for a family member.
Curbsiders have a bad memory as to how long exactly they have owned the car, in many cases they will say they are selling or have bought from a friend whom have since disappeared from the face of earth " yer right "
Buying a Vehicle Privately with a Registered Lien
Never surrender payment directly to an individual seller under a verbal promise that the loan will be paid off and the lien released.
If you will be paying cash for the car, you MUST pay the lien holder the loan payoff amount and pay the balance " if any " to the seller
If you will be financing the vehicle, the lending institution will fund the lien holder and transfer lien to it's holdings along with title.
Should you have issues with transfer of title or registration that you do not fully understand, contact your local DMV.html
Buying from a dealer
When consumers buy a vehicle from a registered dealer, they are protected by numerous pieces of legislation, such as the Sale of Goods Act, the Consumer Protection Act, and the Business Practices Act, to name a few.
By law, dealers must guarantee title against stolen vehicles. Also, dealers must guarantee that there are no liens on the vehicle. They must use Bills of Sale that abide to the law, and are required to report all known material facts about the vehicle.
Here are some services a dealer provide that a private seller can't.
A Dealer's Warranty
After Sale Service
Title Guarantee Against Stolen Vehicles
Lien Free Vehicles
It looks the safe way to buy is from a dealer, but they are not all angels and knows every trick in the book to have the upper hand. there are hundreds of scams being used by some dealerships, as an example I will use one that ties in with this post and I am almost 99% sure you would fall for it.
Note... above where it says...by law dealers are required to report all known material facts about the vehicle... thats true provided the buyer asks and most consumers don't, but now comes the know it all buyer whom has done extensive research and demands a history report which contain several pages...well, I will admit he/she has done all homework if the numbers of pages were counted in order and not a number missing in the middle
not many dealers are scum to this extend, but in my time I have seen this little trick work a few times.