Advice needed... buying a car private sale first time ever!

[gmar1210]

$5k for a 2007 Vibe seems high, especially for a private sale. I wouldn't put any money down and try to negotiate a lower price. If you can't get it below 4k I would walk.

I agree. I did a quick KBB on this car (assuming it is in good condition with 12k miles driven a year) and came up with this.....

Trade in value $1686. Basically that is what you would get if you trade it in.

Private party value $3569

I would offer him $2500 since you know he probably got it at auction for next to nothing.

 

[Klayfish]

Which is why KBB is an awful vehicle value resource, especially on older cars.

You're not buying a 2007 Vibe for $2500, unless it's got major mechanical or existing body damage issues...even $3500 would be very lucky to get. Market for these things is more around $4500-$6000.

 

[gmar1210]

Which is why KBB is an awful vehicle value resource, especially on older cars.

You're not buying a 2007 Vibe for $2500, unless it's got major mechanical or existing body damage issues...even $3500 would be very lucky to get. Market for these things is more around $4500-$6000.

Who says it’s a bad source for car value. That is what everyone uses. That is what they will use when trading in/selling a car. That car was probably purchased for less than $1k at auction.

 

[supersnoop]

Who says it’s a bad source for car value. That is what everyone uses. That is what they will use when trading in/selling a car. That car was probably purchased for less than $1k at auction.

Edmunds and NADA tend to provide more accurate values.

 

[Klayfish]

Who says it’s a bad source for car value. That is what everyone uses. That is what they will use when trading in/selling a car. That car was probably purchased for less than $1k at auction.

I can't say for sure how much it was sold for at auction, but I'd be utterly stunned if it was under $1k. Knowing car values is a huge part of what I do for a living, not to mention I'm a car nut in my personal life. I can tell you from two decades of experience that KBB is a bad source for older used car values. The Vibe/Matrix would likely sell for $2000-$3000 at auction, I actually know a few people who have bought them and flipped them for quick sale. Like I said before, it really is a $4000-$5000 retail value car (roughly speaking...it could actually be a bit more). Cars typically sell for far more than 25% of their retail value at auction (which is what it would have had to be if it sold for $1000 at auction)

Edmunds and NADA are also so-so for older car values. Frankly, the best way to check values on any car...especially ones over 7 or 8 years old...is to see what the market supports. Go to autotrader or cars.com and find the median and that'll give you a much better ballpark than any book. A book can say anything it wants, but the market will dictate what a car really sells for.

 

[seashoreCM]

One thing to beware of: A car may be advertised as a private sale and seen at someone's home but is actually a dealer owned or dealer traded in car exhibited at the home to look like a private sale.

A good idea before taking it to a mechanic, give it a good test drive yourself including city and suburban and freeway driving. Try all the features and accessories, too, including the windows (don't laugh, buyers have been stuck with cars with a window that did not roll down).

Everything should work absolutely perfectly unless pointed out in advance in the advertising.

If something unexpectedly does not work perfectly and the seller gives some reason why on the spot, then walk away. Unless you have auto mechanic experience you don't want to be involved with repairs from day one.

 

[APiratesLifeForMe2]

Actually, yes, it will be valid. It's what I do for a living...

Me too.

 

[Klayfish]

Me too.

Glad to have another insurance person around.

 

[MomToOne]

I wouldn't touch a car unless the title is clear. If your in dire need of a car rent one until he gets back. Don't take it off lot until TITLE CLEAR.

Having a lien recorded on a title is no big deal, esp. if it's his dealership who is the recorded lienholder. A quick signature and the lien will be released. The only thing that can be a problem is if the seller doesn't get enough out of the sale to payoff the loan - the lienholder won't release the lien until the loan is paid in full. But that shouldn't be the case here. Just be sure to have a proper bill of sale before you take the car.

The bigger item to be certain of is that he or his dealership is the registered owner of the vehicle, or they have the proper paperwork from the previous seller to make them the registered owner (bills of sale, etc).

I suspect this is a situation where his dealership did the financing for a previous owner, who probably then defaulted on the loan, or just gave it back to the dealership. A lot of smaller dealerships do this sort of financing on older vehicles for folks with poorer credit.

While I haven't worked in insurance, I have worked in car titling and lien recording

 

[descovy]

Well we went ahead and purchased it over the weekend... waited for the owner to come home.

The mechanic said only thing immediately needed was an alignment. Soon were to be belt and brakes. Still in spec but nearing the end of life. It’s an 07 with 83k miles.

Vibe has New tires, wheels, and struts. Owner had bought it for his college age daughter. But she decided not to take it to college this fall.

It wasn’t really up for sale. I had put out word to my friends that we were looking for a used car after my ‘08 Prius with 190k miles was totaled. Being in Houston, one month after Harvey, I was nervous about buying “cold”. Even dealerships were selling vehicles that smell like bayou.

Our insurance settlement was only $5200. I expected to have to pay $7-8k for “decent.”

My friend (fellow Girl Scouts leader) told me her neighbor managed a car lot. I looked at his dealership website, and while he didn’t have anything in my price range, I emailed him to keep an eye out for me. That’s when he told me about the Vibe he bought his daughter but she hadn’t taken to school. Our mutual friend backs this up as she knows the family well.

(I found out he knows another of my friends who we helped “muck and gut” their flooded house one weekend. I was helping on a Friday. He was there with his sons on a Saturday... so we almost could have met in real life)

So, while I did hesitate about the car, I took comfort in knowing we have a couple of mutual close friends (and several more mutual FB friends). The car is 1 year older than my Prius but 100k miles newer than the Prius.

I shudder to think what my old Prius would show in a pre-purchase inspection. At 190k miles I already knew it’s brakes were going to be needed soon, the struts were shot and it burned oil. And yet I loved that car.

So for the same money as my insurance check, I have a car in better shape than I did before.

I did try to negotiate with the kbb quote (which came out to $4300 private party). NADA came out at $6k retail and Carfax came out at $6400. He said, ok try to find that car out there at $4300. Sure enough I cannot (AutoTrader, CarGurus, etc...) especially under 100k miles. KBB is only as good as local inventory. They can tell you it’s only worth $2000 but try to buy it then.

Overall, I am satisfied. The used car market in Houston is especially tight right now after so many people had to replace cars lost in the floods. So prices are a little high too. But I managed to break even on my car settlement, and I didn’t expect that to be possible.

 

[Klayfish]

Fantastic!!! Glad to hear it worked out for you. You got a great deal...trust me, you really did.